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The main pain point in life that crypto can solve, in my opinion, is the current difficulty of money/value transfer.

DigiByte (DGB) Review 5/10/18 - @DigiByteCoin

“Designed to Secure the Next Generation of Digital Applications” (digibyte.io)

The Facts:

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(Statistics and Facts are valid as of date listed above, at the time of writing this article)

Coin Ticker - DGB

Current Price - $0.048 USD Per DGB

Max Supply - 21,000,000,000

This is a large coin supply, comparative to many other current crypto projects. This is not necessarily a negative thing. However, price could possibly dilute slightly when all coins are in circulation. This coin supply is 1,000 times larger than the total supply of Bitcoin (BTC). This means that, with regards to market cap, Digibyte would have the same market valuation as BTC, at roughly $324.17 USD per DGB, if DGB were to tie BTC in current market cap valuation, assuming both coins were at full circulating/max supply (according to both coin market caps as of 5/10/18).

Circulating Supply - 10,232,680,097

This is still a relatively high circulating supply as well. Although from its current price, DGB could still see tremendous price growth, seeing that the circulating supply of Cardano (ADA) is 25,927,070,538 coins, and achieved an all time high price of roughly $1.28 USD during the last major crypto bull run several months ago. As a transitionary currency, it could be argued that higher coin supply may actually be less confusing. Paying for a daily item with 20 DGB seems less confusing for the general public, than 0.00011 BTC (Both equal roughly $1).

24 Hour Volume - $6,156,210 USD

This is not a large amount of volume, with regards to a top 100 Coinmarketcap coin. However, volume can often largely fluctuate, and this amount of volume should provide adequate liquidity within reason.

Market Cap - $491,453,113 USD

With this market cap, DigiByte is currently ranked 51st on coinmarketcap (ranked from highest to lowest according to market cap). If DGB were to reach a price of $0.48 USD (roughly 10x current price) it would put the market cap at roughly $4,911,686,446 USD. This would put DGB at about 11th place ranking, given the current total overall crypto market cap stays the same (given that my calculations were correct). This is possible, but may be difficult. If the entire crypto market cap grows, this price valuation may be easier to hit.

All Time Price High - Roughly $0.13 USD

If the entire crypto space continues to grow, DGB might not have a problem reaching this price and higher, given the seemingly strong DGB community. But nothing is ever certain. Some projects see tremendous growth at some point in their life span, and then struggle to reach those highs once again, due to the hype factor being gone. Other projects reach former highs more easily, possibly because it is known price territory and they are sound projects with strong community. At this point in time, I do think DGB should break above its previous all time high at some point, especially because it seems as though many new people first getting into crypto, often look for the “cheapest” coin, not taking into account coin supply and market cap. But that’s all just my personal opinion and not professional or financial advice.

Current Exchanges -

Bittrex, Poloniex, Upbit, HitBTC, Kucoin, OKEx, Cryptopia, Sistemkoin, Vebitcoin, LiteBit.eu, Bit-Z, Bitbns, Yobit, Livecoin, CryptoBridge, Coinexchange, Trade Satoshi, Crex24, Bittylicious, Cryptohub, cfinex, and Trade By Trade.

(Above information from Coinmarkecap.com).

The Pain Point:

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The main pain point in life that crypto can solve, in my opinion, is the current difficulty of money/value transfer. It is currently very annoying to send money from one person to the next, if the two parties are miles away. It often involves a third party, such as a credit card company, PayPal, or a bank wire. All these forms take excess time/cost. For example, in order to send $10 USD to someone in Japan, from the United States, it would likely involve going to the bank (during operating hours) and sending a bank wire, and then waiting for that bank wire to clear and be received by the other person in Japan. With cryptocurrency, a person can send value directly from one person to another, very quickly, without a third party, and without having excess exchange into other currencies in the process. In addition, a person can send crypto, without having to divulge private information.

This core concept of cryptocurrency is fascinating, and will change the world in my opinion. The difficulty however, is that cryptocurrency is still in its early stages, and has faced many growing pains thus far. For example, in December 2017 and January 2018, the Bitcoin network was so congested, that it would often take up to several hours to send or receive a transfer. Not to mention the fees that were very high. If for example, a person were to buy a hamburger for $3 back in January, it likely would have cost more than $3 in fees to send the payment, and would have taken too long to send. This showed that, at the time, BTC was not really scalable or practical. Since then however, BTC has been in development of the lightning network. The future does indeed look to be more scalable. However, it is still questionable as to whether BTC will be able to achieve the status of store of value, as well as transitionary currency. If BTC achieves the popularly forecasted price of $100,000 or even $1,000,000, it will be interesting to see how expensive the fees are. For this reason, it would make sense to have a transitionary coin as well.

DigiByte’s solution:

Image From: pixabay.com (PIRO4D)

DigiByte seems to aim to be a go-to solution for cryptocurrency payments, with emphasis on speed, security, and community. “DigiByte has been focused on cyber security from the start. Officially launched in 2014 on January 10th, the genesis block included the hash headline of: ‘USA Today: 10/Jan/2014, Target: Data stolen from up to 110M customers’” (digibyte.io).

DigiByte states that they have a dedicated founder who is active full time. DigiByte seems to have the mindset of trying to stay ahead of the competition, stating that they have “shown industry-leading firsts over the last four years including Digishield, MultiAlgo, MultiShield and SegWit” (digibyte.io) There was no ICO, which aids to its’ decentralization as a coin. It is stated that DigiByte has encountered scaling problems, and has continued to prosper. “Growing to 6 million blocks, the DigiByte blockchain has encountered and overcome scalability issues not yet seen by most other major blockchains” (digibyte.io).

Image From: pixabay.com (TheDigitalArtist)

DGB states that they are “40x Faster, 5x More Secure & More Scalable Than Bitcoin” being “Used in Over 80 Countries Worldwide and growing” and “Smart Contract Ready With Multiple Dapps In Development” (digibyte.io).

Bitcoin has about 4-7 transactions per second with 10 minutes block times, 7400 nodes and 1 mining algorithm. DGB has 560 transactions per second, with the goal of 2000 by the year 2020, with 15 second block times. DGB also has 200,000 nodes, with 5 mining algorithms. (Above info from digibyte.io).

DigiByte also has 3 layers to its blockchain. These layers include an applications layer, a digital asset/public ledger layer, and a core communications protocol/ global network layer.

Positives:

Image From: pixabay.com (TheDigitalArtist)

- Transaction Speed

- Emphasis put on security and technology therein

- Innovative mindset and outlook

- Started in 2014 (more proven than many projects)

- Not built on another platform, such as Ethereum or Neo -

This means that DGB is a coin, not a token. This is good in that DGB has it’s own blockchain and does not rely on the speed of a different blockchain. For example, ERC20 tokens may only be as fast as the Ethereum network will allow at any given time.

- Decentralization

Claims to be more decentralized due to more network nodes comparable to BTC, and no private company control of DGB.

- No ICO

This can be a positive aspect in that it may mean that DGB is more decentralized than many ICO projects, which often have a certain number of coins or tokens held by the team, etc.

- Strong Community

Negatives:

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- No white paper

This is somewhat odd, and negative in my opinion, in that the white paper is an important piece of the puzzle to describe what a project is about to the public, and the technology behind it. A white paper can often be one of the best ways for people to get insight into a project and its vision. It can be argued that only ICO’s and newer projects need white papers, in order to get investors or participants. This argument does not necessarily hold true, in that even Bitcoin has a white paper. A white paper can possibly be an effective way for the project to remain true to its original vision, and be open about its vision in a more concrete manner.

- 21 billion total coin supply

This may only be a negative if seeking more immediate dramatic return on investment. Gains and price swings may seem less dramatic compared to lower supply coins/tokens. However, it seems that an aspect of Bitcoin’s interest is partially that the supply is so limited, that everyone in the world would not all be able to own 1 whole BTC.

- Hype may be gone

The crypto world seems to take particular interest in thing that are “shiny and new”, so to speak. That being said, it can often be easy for projects to fall of the grid with regards to interest, aside from coins such as BTC, ETH, and the like.

- In existence since 2014 (This is both positive and negative)

One may wonder that if DGB is truly as advanced and awesome as it seems, why is it not a top 5 crypto? And why is it still controversial as to wether people think it should be a top crypto or not? It is always good to consider all the facts and thought processes people may have.

Thoughts:

Image From: pixabay.com (Clker-Free-Vector-Images)

DGB seems to be an interesting coin. The speed and security aspects, as well as the touted decentralization are all attractive aspects.

I do not personally think DGB will overtake Bitcoin. BTC has too much interest from a vast array of parties. Its proven the best over time and through trial. BTC also attracts the best developers because of the aforementioned. It seems to have a bright future with lightning network developments. BTC is also the m

ost logical cryptocurrency to use for transferring large amounts of money/value. It can provide better liquidity for this, due in part, to the price of each BTC being so high.

In addition, Through research from multiple sources, it seems as though DGB originally started as a fork of Bitcoin. Reddit user “Bakuon” wrote a response to a post mainly about atomic swaps, but also mentions that “It’s also easiest to do with currencies that were started as a fork of Bitcoin’s codebase (like DGB)” (reddit.com, article link below in sources). “Rishi”, on bitcoin.zendesk.com also states that “DigiByte (DGB) is a decentralized, open-source cryptocurrency and payment network launched in January 2014 as a fork of Bitcoin” (bitcoin.zendesk.com, article link below in sources). So if, assuming this is true, then it would not make sense that DGB would overtake BTC. It doesn’t necessarily make sense that a fork of BTC could overtake BTC to become the number one market cap coin.

Image From: pixabay.com (typographyimages)

That being said, I do think there is potential for DGB in the payments space, or something of that nature. In my opinion, there is a great use case to have a store of value coin (BTC), and a transactional currency for fast transfers and payments. The tough part is that no one really knows which project will take this spot in the ecosystem of crypto. There are currently several options, such as Litecoin, Bitcoin Cash, DigiByte, etc. that all seem to be vying for this role. Currently, the crypto market is highly speculative, and coins/tokens can often be of value simply because people decide that they are worth that value. Sometimes it does not depend on the tech, but simply what people decide, for whatever reason.

Image From: pixabay.com (typographyimages)

Over time, I have learned to personally always take a more skeptical approach, seeing that possibly over 95% of current cryptocurrencies will fail in the long term. That being said, it can be very difficult to determine the long term potential for anything other than BTC (for the most part). Regulation also causes many changes to the ecosystem, which is also uncertain at this time. But due to its claimed decentralization, lack of an initial ICO, speed, and security, DGB seems to me to be an interesting coin and value transfer option.

At the end of the day, readers need to decide what they think the future will be for DGB. This review was written about my opinions and my interpretation of the data, which can be subjective. In no way am I claiming that I know everything, and therefore, more research may be required by readers. But hopefully I have given a good amount of content to assist in entertaining the public. DGB could go nowhere in price or even go down. But it could also do very well. Decide for yourself based on the data and your own personal research. I am not currently holding any DGB, but I have traded it in the past, and may invest/trade it in the future as well. At the time of writing this article, I have not been compensated at all by DigiByte for this review. However, I have been paid compensation by @Coin_Fool (Twitter) for writing my honest opinion and an unbiased review of DGB.

(**Everything written, said, tweeted, etc. is based on my personal opinion, my interpretation of the data/material, and is not financial or investment advice whatsoever. I do not claim to be an expert. Articles may be subject to edit/update at the discretion of the writer)

Sources:

digibtye.io

coinmarketcap.com

Bakuon Quote:

https://www.reddit.com/r/Digibyte/comments/6yblyw/just_noticed_dgb_team_have_hinted_about_atomic/

Rishi Quote:

https://bitcoin.zendesk.com/hc/en-us/articles/360000341471-What-is-DigiByte-DGB-

@bpirus1010-77769

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