What is the difference between OneCoin and Bitcoin?

Although Bitcoin has, for a long time, been dominant in the cryptocurrency scene, it is certainly not alone. Today the virtual market serves more than 700 currencies, with new ones still emerging. Of course, most of them are obvious scams, including many which claim to have a cap market. As the first cryptocurrency, Bitcoin holds the largest market value, developer team, community base, and network hash power as compared to other currencies.

However, this does not mean that it is reigning supreme in the virtual currency market. It has shortcomings and faces the risk of vulnerabilities, which if not addressed can cause the currency to be overtaken by other existing or emerging cryptocurrencies. Here are some of the ways Bitcoin is different from Onecoin which is gaining footing on the market.

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Fluctuations in Value

Bitcoin experiences frequent valuations in value as compared to other cryptocurrencies. This is majorly due to the level of demand on the market. These constant fluctuations will cause sites that accept Bitcoin payments to change prices continually, and this can cause a lot of confusion among sites and consumers. Additionally, 1 BTC can reach up to $1200 or more, and this makes it inaccessible to most people. These fluctuations are rendering BTC an undesirable currency for online trade.

On the other hand, Onecoin does not experience constant fluctuations in value. It is also available in smaller denominations as compared to Bitcoin, making it accessible and more usable. The currency is still in its early stages, and developers may be looking for ways to stabilize it during periods of demand fluctuations.

Exploitation for Theft and Fraud

The blockchain technology on which Bitcoin is based is pseudo-anonymous, unregulated, and decentralized. While these are the features that make it attractive to most users, they are also weaknesses that are always exploited by scammers. Cases of lost wallets and fake Bitcoin wallets hiding malware are common online. Users are enticed to download these wallets, and in the process, inject their computers with malicious software.

The anonymous nature of BTC users also creates opportunities for scams during transactions. Cases of criminals using the currency to launder money for drugs and theft are common. Onecoin operates on a more secure and advanced algorithm as compared to Bitcoin. It uses “know your customer” (KYC) procedures which prevent money laundering and curb the exploitation of the currency for illegal purposes by scammers and criminals.

Investment and Transaction Costs

Bitcoin varies from Onecoin when it comes to the amount of money one is required to invest in the venture. Mining Bitcoins requires the purchase or hire of equipment which can hike the initial cost of investment. Additionally, transaction costs are incredibly high, and they usually change with fluctuations in the currency — if the value of Bitcoin goes up, the transaction fees also increase. The pool of BTC coins available is controlled and is currently at 21 million. This means that the supply cannot exceed this amount.

Investing in Onecoin is cheaper, desirable, and safer as compared to Bitcoins. First, coins are mined in mining pools or teams. Individual investment is minimal as users don’t need to invest in mining equipment to obtain coins. Additionally, the coin price is continually growing, and there is great potential for further growth in the coming years. The number of coins that can be mined on the new blockchain is 120 billion, and this is 5000 times more than Bitcoin coins.

Founder Identity

For a cryptocurrency that’s dominating the virtual currency market, one would expect that the founder of Bitcoin is a well-known personality. However, the programmer(s) that created Bitcoin remains mysteriously hidden and is only known by the name Satoshi Nakamoto. Numerous speculations surround the anonymity of the currency’s founder. There are claims that the developer is possibly hiding wealth from the users or has hidden intentions concerning the technology. Such suspicions can brew negative press for the currency and affect its market.

On the other hand, Onecoin’s founder Dr. Ruja Ignatova is a renowned personality today. Such transparency in management shuts down speculations about a company’s operations. Also, the CEO can come forward and refute any claims that aim at ruining the currency’s reputation on the market. It also creates awareness regarding the company’s operations, goals, and strategies concerning the digital currency technology. Dr. Ruja Ignatova has come up with a team that’s responsible for strategy, attracting merchants, and developing Onecoin. This is unlike Bitcoin that follows a decentralized system of management.