SafeMoon (SAFEMOON-USD) is a new kid on the crypto block as compared to Bitcoin (BTC-USD). About cryptocurrency, then Defi token development like SafeMoon is one of the most gossip crypto blocks. Here is what you need we need to know if thinking about buying it.
You have heard about SafeMoon if you continue with cryptocurrency. Even though it has built an impressive following through good marketing and high early returns only in a few months.
At this stage, neither cryptocurrency meets our expectations of an investment. But for usurers and traders, the benefits could be value the risk.
There are two core attributes for an investment need -ie. Value and Scarcity. The volatility in Bitcoin and the whole crypto market has both, even if in unorthodox ways, compared to traditional asset classes.
Since the main aim of Bitcoin is a medium of exchange or currency, some of the classes people value in that role are.
Like fiat currencies, no centralized governments control Bitcoin's supply. It is due to the crypto wallet's development can dwell outside the traditional banking system and make concepts like FDIC insurance unnecessary.
No currency transaction is complete ever unknown if you're dealing in laundered cash, gold bars, or black-market diamonds. Although, you are dealing with legitimate transactions using credit cards or Bitcoin.
It can be difficult to trace those to an individual, while Bitcoins transactions are traceable is a prime feature of the currency.
With an internet connection from anywhere, the sending and receiving of Bitcoin are by anyone. Although, it is with the network around the world not eased by a centralized mediator. It is with a financial institution or without first storing the currency.
As everything has its advantage and disadvantage, Bitcoin has its own. It has more positive qualities and some negatives as well. Bitcoin meets the value criteria of investment which is the only purpose here to highlight. In another way, people want real-world use for Bitcoin.
As for knowledge, Bitcoin by design has 21 million of finite supply, but only under 19 million bitcoin in existence, and to mine, over 2 million left.
To create all cryptocurrencies other than Bitcoin the term refers to "altcoin." Examples are SafeMoon, security tokens, stablecoins, utility tokens, etc. In a Circular way, altcoins drive Bitcoin's scarcity into question. Although, consider another older cryptocurrency called Litecoin that has better upon many Bitcoin properties. Such properties are faster transaction times while sacrificing almost nothing.
There is more problem with the SafeMoon token than with Bitcoin. It has less transparency on how it works. But cryptocurrency precis within the crypto community is one of the current rages. The full control of financial institutions is under decentralized application services.
SafeMoon provides some facts as it has a website as well as paper. These are things that SafeMoon promises to be always kept in mind. But it is hard to prove or disprove whether SafeMoon gains its mission.
The SafeMoon contract happens with three actions in each transaction and each needs an explanation:
Liquidity Pool(LP) Acquisition
Same as so did when the creation of Bitcoin was, SafeMoon also uses some extensive concepts. But in the current space, SafeMoon hasn't proven itself. However, the break could be further and provide obsolete. It has occurred many times already in the crypto space. As with Bitcoin, to check the "safety of principal" characteristic, SafeMoon hasn't confirmed enough moat.
Why wouldn't people switch to Litecoin or even a future if Bitcoin becomes too expensive?
On the Binance Smart Chain, SafeMoon is a BEP-20 issued token. Changpeng Zhao, the maker of Binance, has accepted that BSC is not decentralized.
Binance Smart Chain for Smart Contract uses a proof of authority consensus mechanism. The knowing of block generator is a validator in POA. Binance selects and pre-approves these validators. So fame like real identities, investing money for a long-term commitment, and being equal to all makes proof of authority based on design.
In this model, over the blockchain, Binance has complete control. Although, the trust of all chain users that Binance will behave in everyone's best interest.
A proof of work is the consensus mechanism Bitcoin uses, which is different from the SafeMoon mechanism. Although, Blockchains development uses proof of work original consensus mechanism. That has proved to be very successful at securing a decentralized system from bad actors.
In proof of work, to confirm transactions and processes, computers compete with each other. Although, the giving of Bitcoin is for completing a new block of transactions and is also known as miners.
Thus this process helps to secure the network and is very energy-intensive. With many thousands of nodes and miners across the globe today, Bitcoin is a distributed and decentralized network.
The comparison between SafeMoon vs Bitcoin tells that in some parts, SafeMoon is lacking as it has got complicated structure than bitcoin. The consensus mechanism is also the difference between them. Although, SafeMoon has not proved itself.
For knowing more about SafeMoon and Bitcoin, feel free to connect with our cryptocurrency development experts.