BitCNY (BITCNY): What You Need to Know About the Chinese Token
The advent of cryptocurrencies and digital assets may be new to this age, but the idea behind them can be as old as humanity; the utilization of a token for quicker, easier and better payments. BitCNY (BITCNY) is not a very well-known cryptocurrency and as such its workings a little hazy.
This article will walk you through the basics of what the coin stands for, and also provide a brief pricing history for crypto enthusiasts willing to invest.
What is bitCNY (BITCNY)?
bitCNY is a decentralized cryptocurrency based on the BitShares blockchain that is pegged to the Chinese Yuan. bitCNY is not an Altcoin, rather it is a market pegged asset (to the Chinese Yuan). The token serves as a financial tool designed to track the price of real-world assets.
Price spikes are not regular among tokens of this nature. The token aims at stabilizing the market price of the asset it is pegged to (the Chinese Yuan). The demand for bitCNY emanates from users who desire that the token get the same purchasing power as the Chinese Yuan. In a nutshell, the bitCNY is a token which represents the amount of BitShares (BTS) equivalent to a Chinese Yuan.
BitCNY as a Market Pegged Digital Assets.
Market pegged cryptocurrencies fall under the unique category of Smart Coils. They were created by BitShares based on price prediction of fiat currencies to ensure that Smart coils follow closely the price of the fiat currency they are pegged to. Naturally, these tokens follow the actual trading price of the currency or asset they are pegged to, so sudden price inflation and deflation is almost impossible.
Current Price and History of the BITCNY
As market pegged assets go, BitCNY (BITCNY) has been performing as expected. Trading price started at $0.16 (USD) in September 2014. As at the time of this writing, the token is trading at a high of $0.169 (USD). Market capitalization has however grown from an initial $75,046 (USD) to $68.2 million (USD).
Irregularities are not common among tokens of this nature, but also not impossible. The token recorded an all-time trading high on the 8th of November 2015 of $15.2 under 24 hours it was down to $1.29 and in the next 36 hours back to its average $0.15. There are few other times when the token scaled the $1 mark.
Market pegged assets are not leveraged to sudden price booms like other digital coins. They, however, follow the price of the asset they are pegged with. An investment in BITCNY means an investment in the future of the Chinese Yuan; which may not be a bad idea considering the growing Chinese economy. If you are looking for quick price spikes, sorry the BitCNY (BITCNY) isn’t for you.