Grayscale recently scored a major victory against the U.S. Securities and Exchange Commission in its efforts to get a Bitcoin ETF. And while this has proven bullish for Bitcoin (BTC), other cryptocurrencies have also benefited, including Bitcoin Spark (BTCS).
What is Grayscale?
Grayscale is a renowned financial institution specializing in digital asset management. Its flagship product, the Grayscale Bitcoin Trust (GBTC), is the world’s biggest Bitcoin fund. Investors can buy and sell shares of the trust in their brokerage accounts, making it a convenient way to invest in Bitcoin. Grayscale’s reputation and success have made it a prominent player in the cryptocurrency industry, with its movements and investment decisions often closely watched as a barometer for the broader sentiment toward digital assets.
What is an ETF?
An Exchange-Traded Fund (ETF) is a publicly traded investment vehicle that tracks the performance of an underlying asset or group of assets, such as stocks, bonds, and commodities. A Bitcoin ETF would work the same way as other ETFS; investors would buy shares in the ETF through whatever brokerage they buy stocks and trade them as they would Apple or Tesla shares. An ETF would thus provide a more accessible and regulated avenue for investors to participate in the cryptocurrency market.
Grayscale made efforts to launch a Bitcoin ETF, seeking the SEC’s approval to convert the GBTC into an ETF. The SEC denied the application in June last year on the grounds that the products were not designed to prevent fraudulent and manipulative acts and practices. Grayscale filed a petition for review, and on August 29, 2023, the court ordered Grayscale’s petition for review be granted and the SEC’s order to deny the GBTC listing application be vacated.
What is Bitcoin Spark?
Bitcoin Spark is a new Bitcoin fork. It maintains the preferred characteristics of Bitcoin, such as its limited supply of 21 million, while bringing forth changes and technologies that set it apart. Several analysts have even suggested that Bitcoin Spark is rewriting Bitcoin’s history.
The Bitcoin Spark network will have faster transaction processing and lower fees than its predecessor due to its enhanced individual block transaction capacity, lesser block time, and higher number of nodes. The network will also support smart contracts and decentralized applications (Dapps). Bitcoin Spark will have a smart contract layer with separate execution systems, all reaching finality on the main network. This will ensure scalability while promoting diversification by allowing for multiple programming languages.
Moreover, Bitcoin Spark introduced a new mining method. The network uses a proprietary consensus mechanism that rewards miners for creating blocks and contributing processing power, known as the PoP. The Proof of Power is employed alongside an algorithm that gradually decreases rewards as more power is added, aiming to achieve a more equitable distribution of rewards.
This, combined with a massive number of nodes, allows for many more individual miners within the network. The Bitcoin Spark development team will even offer an application that enables Windows, Linux, Mac OS, iOS, and Android users to mine by permitting access to their device’s processing unit. The application will regularly adjust the processing power used for mining to account for overheating, battery, and simultaneous usage requirements. Bitcoin Spark’s approach reduces the work and power required for mining, opening it up to virtually anyone.
The miners’ processing power will be rented out to those requiring remote computing power through the Bitcoin Spark network. The clients will be required to pay with BTCS, and the revenue generated will be transferred to the mining pool. The mining rewards will operate on a flexible system determined by factors such as revenue, BTCS price, & the number of miners in the network. If higher revenue is generated, the issuance of rewards will be scaled back to maintain a balanced ratio with the revenue, and the point at which rewards are issued will be adjusted accordingly.
Thus, with unlimited devices being able to provide processing power to the network and Bitcoin Spark overlaying secondary services like advertising, it could end up being a self-sustaining revenue network that allows miners to remain profitable with a limited supply constantly.
The Bitcoin Spark Initial Coin Offering (ICO) has seen a massive inflow of investments amid the news of Grayscale’s victory. The ICO is currently in Phase 4, selling BTCS at $2.25, which is accompanied by a 10% bonus.
For more on Bitcoin Spark:-
Website: https://bitcoinspark.org/
Buy BTCS: https://network.bitcoinspark.org/register
Source: https://www.cryptonewsz.com/grayscale-etf-victory-proves-bullish-for-bitcoin-and-bitcoin-spark/