Bitcoin Dark is a cryptocurrency which stems from the original Bitcoin, otherwise known as a fork. The key difference between Bitcoin Dark is that, unlike Bitcoin, which incorporates the Proof of Work consensus algorithm in order to maintain the authenticity of its transactional data, Bitcoin Dark adopts a Proof of Stake consensus mechanism. This means that mining on the Bitcoin Dark blockchain is not dependent upon having high-powered computational resources.
- No working wallet for BTCD
- BTCD blockchain also out of action
- Only available to trade on Poloniex and Cryptopia
What is Bitcoin Dark?
Originally, Bitcoin Dark was designed to use Bitcoin’s SHA-256, along with a “hybrid” hashing algorithm, combining the best bits of Proof-of-Work (PoW) and Proof-of-Stake (PoS). However, the project was abandoned at the beginning of 2018 before a total of 22 million Bitcoin Dark coins were produced.
The Bitcoin Dark team eventually moved to the development of Komodo (KMD), a cryptocurrency that features a consensus mechanism called delayed Proof-of-Work (dPoW) and Zcash’s zero-knowledge proofs to offer anonymous transactions.
The abandonment of the Bitcoin Dark project meant that BTCD owners could swap their tokens for KMD coins for a set time. This period has now passed, with Bitcoin Dark left with no operational blockchain or a working wallet to house them.
What is its purpose?
Are you wondering what Bitcoin Dark is about? In its infancy, many thought Bitcoin Dark could offer genuine competition to the original Bitcoin due to its anonymity and reduced reliance on mining resources. Bitcoin Dark’s block time was a mere 60 seconds and was also attempting to appeal to users that did not like Bitcoin’s move towards regulatory appeal and heightened transparency.
However, the sudden end of the Bitcoin Dark project means we will never know quite how well BTCD could have done against BTC.
The team behind Bitcoin Dark
The Bitcoin Dark team is now heading up the Komodo platform, with a collection of seasoned blockchain veterans looking to cement KMD as a legitimate option for open-source applications within an interoperable blockchain ecosystem. It is clear that the Bitcoin Dark team have more faith in the future of Komodo than they did in Bitcoin Dark as its former entity.
How Bitcoin Dark works
How does Bitcoin Dark work? Put simply, it doesn’t work any longer. Bitcoin Dark has no working blockchain but surprisingly is still listed on exchanges such as Poloniex and available to trade. There have been some surprising instances of the price of BTCD spiking as much as 300% within a single day, with some industry experts believing the coin has become a prime candidate for “pump and dump” practises.
How does Bitcoin Dark compare to Bitcoin?
As already discussed, Bitcoin Dark was designed to differ from Bitcoin in that it offered a hybrid hashing algorithm, combining the best bits of PoW and PoS for users. There was a genuine feeling in the crypto space that BTCD could have toppled Bitcoin, but since the Bitcoin Dark team abandoned the project to join Komodo, we’ll never know what kind of challenge Bitcoin Dark could truly have posed for the original Bitcoin.
How to get Bitcoin Dark?
The Bitcoin Dark coin has since been abandoned, but there used to be several ways to get your hands on the cryptocurrency:
You can buy it
US-based cryptocurrency exchange Poloniex used to be the number-one place to buy Bitcoin Dark before BTCD was removed due to Bitcoin Dark’s inactive network. Take a moment to read our Poloniex review and you’ll soon see this is an exchange better suited to experienced traders, so only sign up if you are confident at executing trades.
Although there are cryptocurrency brokers that ‘buy’ and ‘sell’ the underlying value of crypto assets, known as contracts for difference (CFDs), the likes of eToro and 24option no longer offer BTCD to buy.
You can trade it
It used to be possible to trade the price of BTCD over the short term using the Poloniex exchange. This involved buying or selling the price of BTCD at its support or resistance point and closing your position a few hours or days later when the price retraced in the direction you anticipated. However, as the BTCD blockchain is no longer usable or reliable, exchanges do not support Bitcoin Dark trading anymore.
How to store Bitcoin Dark
At the time of writing, none of the available cryptocurrency wallets will accept Bitcoin Dark for online or offline storage, making it difficult to retain or use BTCD as part of a cryptocurrency portfolio. Furthermore, given that CFD brokers like eToro don’t offer BTCD to buy or sell, you can’t even speculate on the volatility of the asset. It’s a cryptocurrency that’s been left to rot in the wilderness.
Bitcoin Dark price, market cap & supply
At the time Bitcoin Dark ceased to operate on the crypto exchanges, there was a total supply of BTCD amounting to more than 1.2 million. Given its recent inactivity, it is impossible to speculate on what the price or market cap would have been at the time of its removal.
Bitcoin Dark advantages & disadvantages
Advantages of Bitcoin Dark
√ It's difficult to find any advantages given that Bitcoin Dark is now inactive and unavailable to buy or trade.
Disadvantages of Bitcoin Dark
X The biggest disadvantage is that the cryptocurrency is no longer a going concern.
Should you invest in Bitcoin Dark or not?
Even if you wanted to invest in Bitcoin Dark, it is no longer possible. All cryptocurrency exchanges have delisted BTCD from their platforms, with no active blockchain or wallet capable of executing or storing the tokens. If BTCD was to ever return, it would arguably be best to use a CFD broker to trade its price in case it was to close again. This would ensure you are never left with lots of BTCD coin in a wallet without a value.
FAQ’s – Frequently Asked Questions About Bitcoin Dark
When did Bitcoin Dark close?
Historical data for Bitcoin Dark only goes back to 5th October 2018, when BTCD ceased trading with a market cap of US$20.9m.
What is Komodo?
The Komodo platform is an open-source ecosystem, designed to attract decentralised apps (dApps), powered by its privacy-centric Komodo coin (KMD).
What was Bitcoin Dark’s price when it ceased trading?
On 5th October 2018, Bitcoin Dark was priced at US$16.23 per BTCD.
What does Proof of Work mean?
Proof of Work (PoW) systems is a function or protocol designed to prevent denial of service attacks or other such abuse by requiring work on behalf of the service user, often involving computational processing.
What does Proof of Stake mean?
Proof of Stake (PoS) algorithms are designed to achieve a distributed consensus on a blockchain network. Within a PoS-driven cryptocurrency, the creator of the next block on its blockchain is selected using a host of randomised combinations.
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