A Smart Coin is a cryptocurrency whose value is fixed to that of another asset, such as the US Dollar or gold. Smart Coins always have 100% or more of their value assisted by the Bit Shares core currency, BTS, to which they can be converted at any time at an exchange rate set by a reliable price feed.
The idea behind bit 20 is feed that it is a crypto portfolio that you are investing in and so there’s only one coin or its 1.0 1/6th of a bit 20 coin and that coin is included of twenty different coins so by buying little and small pieces of this amazing portfolio. It contains 20 cryptos that are on the top of the cryptos rate. So, it’s like buying a diversified portfolio in one single transaction.
Bit20 has grown massively in value. The smallest unit (0.00001 BTWTY) is now cost several dollars and it keeps growing. Firstly, it was thought to include ten crypto currencies in this coin but later on from 11th to 20th range have had a lot of potential to grow out and should be a part of the bit20. Therefore, in the later stage bit 20 included top 20 bitcoins that contains the highest values and the coin whose value shrinks or does not grow or remains same is excluded when the list is updated again and the another one that is growing somehow is included in index which contains ratio values that is been mined by a bitcoin in $USD.
Bit20 index fund includes first 20 bit coins and different percentage of 20-bit coin is included whose price is very high. Bit 20 does not include those coins which does not increase or grow their values. Using some index values, it is calculated. But if some bit coin fails in increasing value then it does not include in list it is removed from list. and next month new one who are performing better takes their place. If I compute value of bit 20 recently it is 137667.652488 $ therefore after calculations of twenty top rated currencies a bit 20 is found and it is very valuable because it contains many percentages of different bit coins.
So far as it is considered to do mining of a simple bit coin it I not so easy to do so without a powerful hardware GPU’s. we can also do the same on CPU but it would be much expensive and slow procedure. Therefore bit 20 is also not so easier to mine it would take a sufficient time and resources but it would also make us millionaire.
An algorithm calculates the weight (% ) of each coin in the index.
The witnesses represent the highest representation of trust and decentralization in the Bit Shares ecosystem. They have the code to produce the index price using the composition created by the first algorithm.
The index value of a bit coin could not be stored on a centralized server because it could be hacked or its index values could be changed passing with time or for personal use. Therefore, they used bit share. block chain to store index composition. Every month the new composition is updated in a standard transaction memo.
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