What is BitTorrent Token (BTT)
BitTorrent Token (BTT) is a native cryptocurrency of BitTorrent, which is based on the Tron blockchain. BitTorrent is one of the most popular P2P (Peer to Peer) file-sharing protocols that was launched back in 2001. The company launched its own BitTorrent Token (BTT) recently in 2019, and within less than two years, it has become one of the most popular virtual currencies in the whole world. The primary aim of creating BitTorrent (BTT) was to tokenize BitTorrent, which is known to be the largest decentralized network in the world for file sharing.
In this article, we'll discuss BitTorrent Token (BTT) in detail, how it works and what you can buy using your BTT token. If you want to know the scope of this cryptocurrency, then consider reading this guide till the end.
BitTorrent Token (BTT) History
In order to fully understand what BitTorrent Token (BTT) is and how it works, it’s important to discuss its parent company. As mentioned, BitTorrent was founded in 2001 by a renowned American software engineer, Bram Cohen. It allows users around the world to upload and download desired files using a decentralized P2P protocol. Currently, it’s the most potent and the best P2P platform across the globe in terms of service quality, number of users, and popularity.
The best thing about BitTorrent is that any user who starts downloading a file becomes a member of the community. Peers and seeders are the two primary roles, and a user connected to the BitTorrent ecosystem plays both of the roles at the same time. In simple words, a peer is a person downloading a file, and a seeder is the one uploading. Both of the tasks usually take place at the same time.
Tron Foundation founder Justin Sun bought BitTorrent in July 2018 for 127 million US dollars. Later in January 2019, BitTorrent issued its cryptocurrency (BTT). In its first ICO (Initial Coins Offering), more than 60 billion tokens were sold within a matter of minutes. Resultantly, the company raised more than 7 million US dollars. It's important to note that at that time, the value of one BTT token was only 0.0012 US dollars. But right after three days of ICO, the value of the coin reached 0.0005 US dollars, and within five days, the price of one BTT token doubled. Currently, the price of one BTT is 0.002 US dollars, according to CoinMarketCap.
How Does BitTorrent Token (BTT) Work?
As discussed earlier, BitTorrent (BTT) operates on the Tron blockchain, so it’s a TRC-10 token. Unlike most cryptocurrencies, the Tron blockchain uses the DPoS (Delegated Proof of Stake) consensus algorithm. In other words, it means that it’s not possible to mine BTT tokens. Instead, users need to stake it in order to earn more BTT tokens. Moreover, any person who wants to stake and verify new blocks to the blockchain must also hold BTT tokens.
Security of BitTorrent Protocol
According to the company, the BitTorrent platform is equipped with the highest level of security protocols. But at the same time, the company advises its users to keep their token safe because, being a cryptocurrency, BTT coins possess inherent risk. It's recommended for all the BTT token holders to keep them from malware by utilizing two-factor authentication and biometric verification.
How is BitTorrent Token (BTT) Unique?
The initial aim of the company was to transform the way people obtain content by disrupting the traditional entertainment industry. The main target of BitTorrent was inefficient and expensive distribution networks. For that, BitTorrent launched its new version known as BitTorrent Speed. On this network, there are also two types of users which are known as service requesters and service providers.
Service providers receive bids from service requesters for a specific file, and these bids specify the number of BTT tokens a requester is willing to pay. Once the content provider accepts a bid, the agreed-upon number of BTT tokens are transferred to the system's escrow, and the transfer of file begins. When the requester successfully downloads the file, the funds are automatically transferred to the service provider. The Tron blockchain records the details of all such transactions taking place on the BitTorrent Speed network.
Total and Circulating BTT token Supply
The total supply of BitTorrent BTT tokens is 990 billion. 6 percent of the total supply is available for the public token and. Moreover, 9 percent is available for the seed sale, and 2 percent is for private tokens sale. The company has also reserved more than 20 percent of the total BTT tokens supply for airdrops which are expected to take place at various stages until 2025. The Tron foundation holds 20 percent of the total supply, and 19 percent are also reserved for umbrella organizations and the BitTorrent foundation. Lastly, 4 percent of the total BTT tokens are reserved for future partnerships with other companies.
Uses of BitTorrent Token (BTT)
The purpose of creating a BitTorrent Token (BTT) is very clear as it tokenizes the P2P file-sharing environment. Here are some of the most prominent use cases of BitTorrent BTT tokens.
The main goal of the BTT token is to help people download files in a peer-to-peer environment with more speed than ever. Moreover, you can also earn more BTT tokens by seeding BitTorrent files.
BitTorrent BTT token has increased its value dramatically, and it possesses great potential. Therefore, it can be viewed as a digital currency investment, just like many other cryptocurrencies.
Although the main goal of the BitTorrent BTT token was entirely different, you can still receive and send this digital currency just like any other virtual coin. You can also buy products online by using BTT tokens if you want.
BitTorrent BTT Token Criticism
In spite of its very short lifespan, the BitTorrent BTT token has already started facing a lot of criticism and controversies.
ICO (Initial Coins Offering) Controversy
The native cryptocurrency of the Tron network is already a valuable asset with a market capitalization of more than 4 billion US dollars. So, it means that the company had a lot of money to start expanding the BitTorrent BTT token. But still, it decided to go for ICO to raise funds. Many crypto experts criticized it and raised the question of why Tron didn’t invest in its own project in the first place.
Simon Morris Reviews
Simon Morris, one of the former BitTorrent executives, has also criticized the choice of Tron blockchain for BitTorrent BTT tokens. He said that it's not possible for the Tron network to withstand the load that will be generated after tokenizing the BitTorrent ecosystem.
Pros and Cons of BitTorrent BTT Token
Along with the benefits of BitTorrent BTT tokens, there are also some downsides associated with this cryptocurrency. Here we have listed both of them in order to understand the project better.
- The market capitalization of the BitTorrent BTT token is still pretty low as compared to other cryptocurrencies. It currently stands at 1.5 billion US dollars which also means that the potential that this cryptocurrency possesses is huge.
- BTT cryptocurrency is free of inflation
- It has a strong community across the globe.
- Makes it easy to complete microtransactions in the torrent community for seeders
- Because of its huge market supply, the BitTorrent BTT token can’t reach the value of 1 US dollar in the near future.
- Two companies own more than 40 percent of the total supply of BTT tokens that makes a lot of crypto users nervous while buying these tokens.
How to Buy BitTorrent (BTT) Tokens?
As mentioned, the BitTorrent network is based on the DPoS (Delegated Proof of Stake) algorithm, and it can't be mined. Any user who possesses a complete file copy and shares it on the BitTorrent Speed network is awarded new BTT tokens. It means that new BTT tokens can be easily earned without any specialized and expensive hardware.
On the other hand, if you can’t get involved in torrenting because of legal regulation, then you can still own a BTT token. All you need to do is to choose the right online crypto exchange that supports BitTorrent BTT tokens to buy them.
The first step is to choose the right online crypto exchange, and the best available option is Binance. It’s one of the biggest crypto exchanges in the world to buy cryptocurrencies, including BTT tokens. You'll need to create your account on this exchange and go to the "Buy Crypto" option. Then you'll need to choose BitTorrent BTT from the list of available cryptocurrencies. Then the system will ask you to attach your payment details, and that's about it.
It's important to note that Coinbase is the most trusted online crypto exchange, but it doesn’t support BitTorrent BTT tokens at the moment.
Where to Store your BTT Tokens?
Although you can store your BTT token in your Binance account, the best way to keep your crypto assets, including BTT coins, safe is to use a secure crypto wallet. In order to store your BTT coins, you can use any Tron wallet because the BitTorrent token is based on this blockchain. There are basically two different types of crypto wallets available that you can use.
If you want to store your BitTorrent BTT coins in a hardware crypto wallet, then there is no better option than Ledger. It’s one of the most popular and leading hardware wallets that has been offering its services since 2014. The best model by Ledger for beginners to store your BTT tokens is Ledger Nano S. It supports more than 1,000 different digital currencies. On the other hand, if you want to use a more premium hardware crypto wallet, then we recommend you choose Ledger Nano X. It comes with some extra feature's functionalities such as Bluetooth, but at the same time, it also costs more.
When it comes to storing your BTT token in a software crypto wallet, then there are many options that you can use. Most of the software wallets are free to use.
One of the best software crypto wallets is Atomic Wallet that supports more than 300 different cryptocurrencies, including BTT coins. You can also use your credit cards on this software crypto wallet to buy multiple cryptocurrencies.
Exodus is another great option that you can use to securely store your BTT tokens. It supports 138 different cryptocurrencies, and other than a very low transaction fee, it doesn't charge anything.
What Can You Buy with BitTorrent BTT Tokens?
There are many online platforms available that you can use to actually buy anything required to meet your daily life needs. Yes, you heard it right. The best example of such a platform is Coinsbee that allows you to buy giftcards with BTT for more than 500 national and multinational brands. Other than that, you can also buy a mobile phone top-up with BTT.
The reason why we mentioned that you could use this platform to buy anything that you need in your life is that it offers gift cards for all types of brands. You can purchase Amazon BTT gift cards, Walmart BTT gift cards, eBay BTT gift cards, and more to buy electronics, grocery items, home appliances, kitchen and dining products, and much more.
If you are a gamer, then Coinsbee got you covered as well. That’s because you can buy Steam BTT gift cards, PlayStation BTT gift cards, Xbox Live BTT gift cards, PUBG gift cards with BTT, and many other gaming platforms and games. Moreover, Coinsbee also offers giftcards BTT for Netflix, Hulu, iTunes, Spotify, Nike, Adidas, Google Play, and so on. You can also redeem these giftcards for BTT right after buying on the respective store to buy your favorite products.
Despite the criticism and controversies that surround BitTorrent (BTT), the network is very promising. Two of the most prominent factors about this cryptocurrency are its pure decentralization and strong community. It's currently serving over 100 million active users across the globe, and that number is only increasing.
Most crypto experts suggest that the BitTorrent ecosystem has the potential to grow dramatically in the coming years because of its current performance and upcoming projects. We hope this guide will help you to understand all the important details about this cryptocurrency and how to utilize it in the best possible way.