Dimecoin: what is it and how does this crypto work?
Dimecoin: what is it and how does this crypto work?
Crypto

Dimecoin: what is it and how does this crypto work?

By Marco Cavicchioli - 4 Oct 2020

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Dimecoin (DIME) is the crypto of the so-called Dimecoin Network. 

It is a crypto that has existed for a long time, i.e. since 2014 and during the speculative bubble at the end of 2017 it acquired a lot of value. Then it lost just as much. 

According to CoinMarketCap data, it made its debut on the crypto markets at 2 millionths of a dollar, or $0.000002. 

The price remained very low until early 2017, when it started to rise. 

By October 2017 its price had increased tenfold to 20 millionths of a dollar, and by mid-January it had increased tenfold again, reaching an all-time high of 275 millionths of a dollar on January 13th, 2018. 

Since then, however, a long decline began, so much so that by February it had already fallen below 60 millionths, and by April it had also fallen below 30 millionths. 

After a short ascent, it went down again, so much so that in July it was already below 20 millionths, and at the end of November it went down to 5 millionths. 

In other words, in just over a year and a half it rose from 2 to 275 millionths and then fell to 5 millionths. 

The price then continued to fall again, and since then it has fluctuated between 1 and 3 millionths of a dollar, which is more or less what it was worth at the time of the placement 6 years ago, and what it was worth before the 2017 growth began. 

It would almost seem to have had a relatively constant value over time, around 2 millionths of a dollar, except during 2017 and 2018. 

It is a cryptocurrency with its own blockchain, born as a global payment solution that wanted to be fast, simple and secure. 

Its very low market capitalization of only half a million dollars actually suggests that it is now an outdated project. 

It is enough to think that most of the blocks that have been mined lately contain a single transaction, namely the miner’s reward, with a new block being mined every 1 minute or so. In other words, transactions related to the exchange of DIME tokens are now very rare.

Over the years, it has become quite clear in the crypto sector that the best cryptocurrencies to use as a means of exchange, i.e. for payments, are those with stable value, and in particular stablecoins, partly because payments in fiat currency are often so fast, simple and secure that it is difficult to compete with them. 

To compete with fiat payment gateways, a cryptocurrency must not only be fast, simple and secure, but must also have a stable value, as well as low commission costs and total freedom of use. 

From this point of view, only stablecoins come close to this ideal, even though USDT itself, the world’s most widely used stablecoin, still has too high transaction costs, due to the fact that it largely uses the Ethereum blockchain. 

The most successful cryptocurrencies have turned out to be not those that try to replace fiat currencies, but those that allow completely new uses, such as Bitcoin with its deflationary nature, or ETH as the utility token of the Ethereum network. 

Marco Cavicchioli

Born in 1975, Marco has been the first to talk about Bitcoin on YouTube in Italy. He founded ilBitcoin.news and the Facebook group" Bitcoin Italia (open and without scam) ".

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