On March 24th, 2014, I announced that Vault of Satoshi (the now defunct Canadian Bitcoin exchange that I worked at) was to add several new coins, among them was Vertcoin.
What is Vertcoin?
Vertcoin launched in January of 2014 positioned as a Proof-of-Work (PoW) peer-to-peer cryptocurrency that was ASIC resistant and truly decentralized by discouraging pool monopolies.
This revelation was quite ahead of its time, you have to remember that in 2014 there weren’t many ASICs on the market. We know that back in 2012 a few companies, namely Butterfly Labs, ASICMiner and Avalon (now Canaan) were all working on making Application-Specific Integrated Chips (ASICs) for mining Bitcoin, and based on spikes we saw in certain pools in China we know that many of them began to use them themselves around that time.
But, it wasn’t until around January 19th of 2013 that the first batch, which offered 60 GH/S for around $1300, was sent out to consumers as you can see in the Bitcoin Magazine article. In fact, this was such a different time that the article there in Bitcoin Magazine was written by a little known author and editor by the name of Vitalik Buterin. I knew him as the guy whose magazine we bought ads in, you probably now know him as the inventor of Ethereum.
Want to be up to date on Crypto?
Subscribe to our free newsletter and we'll send you the latest insights, market news and trading strategies related to cryptocurrency!
Anyway, back to to the main point. The Vertcoin team had been closely following the discussion of ASICs for a while, and had seen their early impact on the Bitcoin landscape. Within a few short months it was now barely “penny-profitable” to mine on your own computer, in fact it wasn’t even that profitable to set up an office filled with custom GPU rigs, ASICs were eating the world – and anyone who owned a few ASICs could set up their own Bitcoin Pool and charge an outrageous fee because they had such a large chunk of the hash rate.
Why do I have high hopes for Vertcoin?
The Vertcoin team has proven time and time again to be one of the most innovative and progressive development teams out there. From being the first to have ASIC resistance and P2P pools, they’ve built very user friendly programs, added stealth addresses, updated their Algo any time it comes under jeopardy of centralization and have plans to roll out both Segwit and Lightning Network updates this year. (Update: Both were rolled our successfully in May of 2017)
As Bitcoin continues to attract large corporate mining groups, and starts to open up avenues for institutional investors it’s moving further and further away from being the fair, decentralized, currency that Satoshi Nakamoto’s whitepaper intended it to be. I think we’re going to see a surge from ASIC resistant coins like Vertcoin, Monero, Feathercoin, and maybe even some stragglers like Quark.
Where ever Cryptocurrency goes, everyone wants to be a part of it, to feel like they are a part of something. While I love all the new exciting tokens on the Ethereum blockchain, there is nothing that matches the feeling of mining and feeling like your truly part of something new and special and not just a consumer. Whenever these ASIC resistant coins reach their mining cap, or become over inflated in market cap then others will appear to take their place. You can always be on the look out for the next coin that users feel they can be truly engaged it, because the feeling of belonging to something is economically priceless.
P.s - Get new updates/analysis on tech and startups
I write a weekly high quality newsletter covering the latest in Cryptocurrencies - focusing on market news, ICOs, and new blockchain technologies.
Disclaimer: Nothing in this post constitutes financial advice. Trading in cryptocurrencies is risky, never invest or trade more than you can afford to lose. Consult an attorney and tax specialist about the implications of trading cryptocurrencies and mining in your jurisdictions.
Disclosure: This article was originally part of my project CoinReport and was written in early Spring of 2017. This post was re-published on TokenReport in December of 2017, and based on an offline draft form of the post that I had on my local system at the time. December 2017 is well after the resurgence of Vertcoin. At the time of re-posting this blog post I do not hold any position in Vertcoin and do not plan to enter into any position within the next 72 hours.