Bitcoin Vault is the name of one of the many cryptocurrencies that want to follow the success of the original Bitcoin (BTC). But is Bitcoin Vault actually an improvement on BTC and is it worth investing in?
The recent price records of Bitcoin (BTC) bring the topic of cryptocurrencies to the attention of the general public and more and more people consider an investment. In the process, interest often falls on alternatives to BTC, such as Bitcoin Vault (BTCV). BTCV not only has the attractive word Bitcoin in its name, but also advertises features that BTC does not have. But is Bitcoin Vault really a promising investment opportunity from an investor’s perspective?
Background on Bitcoin Vault
Bitcoin Vault was launched in December 2019 and started trading on crypto exchanges in March 2020. BTCV was developed by a team from Poland. This aimed to copy the concept of Bitcoin as a store of value, but optimize BTCV for everyday use. For example, BTCV allows transactions to be canceled up to 24 hours later. This is intended to take away users’ fear of making mistakes in the still unfamiliar way of transferring cryptocurrencies. Bitcoin Vault also offers the possibility to execute transactions in a business environment only after several responsible parties have given their digital consent, a feature called multi-signature.
On paper, the scope of Bitcoin Vault sounds interesting. But a look at the hard numbers turns out to be sobering. Coinmarketcap, even with its sophisticated analysis methods, cannot determine how many BTCV are actually in circulation and therefore cannot quantify a market capitalization. In the list of major cryptocurrencies, this service ranks Bitcoin Vault at around 2340, hopelessly far behind the established cryptocurrencies. The overview of the trading venues where BTCV is listed is not a pro argument either. The large and well-known crypto exchanges like Binance and Coinbase refrain from supporting Bitcoin Vault. No official reason is given for this, but it is likely due to technical doubts about BTCV.
Bitcoin vs. BTCV
Thus, compared to Bitcoin, the picture for BTCV is rather weak. Bitcoin started in 2009 and has since developed into an asset class in its own right. More than $700 billion in capital has rallied behind BTC, and daily trading volume in Bitcoin exceeds $50 billion on many days. Not only is BTC listed on all crypto exchanges, but also on traditional exchanges via Bitcoin futures and options. This situation guarantees for Bitcoin the formation of fair market prices and liquidity at all times.
Bitcoin’s price curve shows a steady upward trend over the past decade despite some temporary dips. In the last 12 months alone, BTC has quadrupled in price, from just under $9,000 to currently around $38,000. Bitcoin Vault, on the other hand, was quoted at around 24 US dollars at the start just under a year ago, then experienced a high flight to a good 400 US dollars in the summer of 2020 and has since fallen back to around 80 US dollars. It should be taken into account that BTCV only moves around 20 million US dollars on most trading days and thus individual trades can have a major impact on price formation.
Conclusion: The real Bitcoin remains the royal road for investments in crypto
One should not be blinded by the name as an investor in Bitcoin Vault. BTCV has remained largely irrelevant in the crypto industry and is far from establishing itself as an asset class in the traditional financial world as the original Bitcoin has. While BTC shows its strengths as a store of value in times with considerable inflation risks, Bitcoin Vault threatens to end up as a so-called Shitcoin. This refers to cryptocurrencies that become virtually worthless due to price development and lack of capitalization. If you take a closer look at Bitcoin Vault, you will find fundamental flaws. We therefore strongly advise against investing money in BTCV.
From our point of view, the situation is different for investments in Bitcoin. It is impossible to imagine the modern world without the mother of all cryptocurrencies, and major companies like MicroStrategy have started to prefer BTC over the US dollar as a currency for their cash reserves. Forecasts continue to trust Bitcoin as “digital gold” with significant price gains and consider a price target of 100,000 US dollars realistic in the medium term. Therefore, as is often the case in life: The original beats imitators and this difference is evident in Bitcoin vs. Bitcoin Vault.
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