Potcoin cryptocurrency review – history and nuances

The Potcoin cryptocurrency has become a truly unique phenomenon because it can be safely called a payment system designed to make payments in the legalized cannabis industry. The currency was created in 2014. Just at that time, recreational marijuana kiosks began to appear and operate in the western United States. Thus, this cryptocurrency is intended to pay for purchases.

Although the Potcoin cryptocurrency attracted attention at the time of launch, over time it turned out to be almost forgotten, although it continues to operate quite successfully. One “coin” now has a value of a third of a dollar. The issue is 420 million “coins”, which is twenty times more than the Bitcoin limit.

History of occurrence

The story of Potcoin began on January 21, 2014, when it launched. It was carried out by three entrepreneurs from the city of Montreal, which is located in Canada. The developers sought to create that virtual currency, which could become a universal method of payment in the legitimate industry for the sale of cannabis worldwide. The real names of the creators of Potcoin remain unknown since all references are only associated with nicknames: Hasoshi, Mr. Jones and Smokemon. A week after the start of the project, several popular pools for mining Potcoin became interested in currency, which subsequently led on January 30 to the possibility of trading between Potcoin and Bitcoin. Four months later, Potcoin’s capitalization reached one million US dollars, but the very next day the currency collapsed due to various fraud by investors.

But the development team did not give up and began to create ATMs for the Potcoin cryptocurrency, the first of which was opened on May 27 for general use. It was this event that led to a new record because the entire volume of this digital currency was estimated at almost two million US dollars as of July of that year.

2015 was a difficult period for Potcoin, as the initial composition of the development team ceased to exist due to the departure of most of the developers. Nevertheless, it is possible to maintain the life of the “coin” even now. In addition, six months later, a major update was launched. The transition to the new POSV algorithm began, as a result of which some problems were noted with the speed of transactions, as well as the freezing of accounts on Potcoin wallets. Later, the situation returned to normal, all wallets were restored, and the speed was increased.

Among the unusual facts, it can be noted that in the summer of 2017, cryptocurrency developers sponsored another trip of former basketball player Dennis Rodman to North Korea.

Features and principle of operation

Like many other cryptocurrencies, the application is based on blockchain technology. Its use has long been widespread because it also underlies the well-known Bitcoin. Initially, the Potcoin cryptocurrency was a fork (branch) of a cryptocurrency such as Litecoin. However, some differences led to the separation from the “parent” cryptocurrency. Before the launch of the POT cryptocurrency, 55 blocks were mined, the reward for each at that moment was 420 “coins”. But by the summer of 2014, the number of coins paid for the formed block in the process of the so-called Potcoin mining was 210, which is half the initial reward.

Earnings Potcoin is carried out by mining, which in turn is carried out according to the standard scheme, using the central processor of the computer, or its graphic processor (video card). At the moment, this is not a big profit if you do not use specialized equipment such as ASIC. Also, a typical script for cryptocurrencies Scrypt has been replaced in this digital currency with a new one called POSV. Subsequently, this also led to the abolition of the practice of “mining”, which was replaced by a commission on money transfers.