Bitcoin is the oldest cryptocurrency compared to OneCoin. Bitcoin also has the largest market value than OneCoin. Though Bitcoin is the more established digital currency but it has some disadvantages compared to OneCoin. Bitcoin has a decentralized network while OneCoin has a centralized network. Therefore, OneCoin has a transparent development path compared to the anonymous development team of Bitcoin.
- OneCoin was introduced by Ruja Ignatova in concert with Sebastian Greenwood and from 2014 to 2016, OneCoin was able to pull in $4 billion market capitalization
- Bitcoin uses a peer-to-peer computer network to complete the transaction between two users
- Bitcoin experiences frequent valuations in value but OneCoin doesn’t have valuations in value
- Bitcoin is based on blockchain technology while OneCoin has a more secure and advanced algorithm
- There are significant differences between Bitcoin and OneCoin in terms of investment and transaction costs
Over the years Bitcoin has been dominating the crypto world but now they are certainly not alone. Currently, there are more than 700 virtual currencies available and among these currencies, some of them are proved to be worth of an opponent for Bitcoin-like OneCoin. Many people feel that OneCoin might be a better option than Bitcoin when it comes to digital investment. However, Bitcoin holds the largest market value so it’s the industry veterans who would know better about OneCoin and Bitcoin. On the other hand, we general investors can know the differences between these two cryptocurrencies and understand which cryptocurrency might gain footing on the market.
What Is OneCoin?
Since its establishment, OneCoin has gained quite a name in the market thanks to its perfect gateway to Onelife products and services. So what is OneCoin? Well, OneCoin was a cryptocurrency-based Ponzi scheme that was promoted as a cryptocurrency by Bulgaria-based offshore companies OneCoin Ltd and OneLife Network Ltd. The concept of OneCoin was introduced by Ruja Ignatova in concert with Sebastian Greenwood. From 2014 to 2016, OneCoin was able to pull in $4 billion market capitalization. In 2014, Ruja Ignatova started OneCoin saying, it would work just like any other cryptocurrency. It was also claimed that OneCoin could be mined and used to make payments.
However, there was no OneCoin blockchain model or payment system. The company that promoted OneCoin did sell educational materials which were its main business. In fact, the course selling was a part of a multi-level marketing (MLM) scheme. So when buyers bought courses, they received tokens that could be used to mine OneCoin. There was an exchange named Xcoinx available for OneCoin which in fact was an internal marketplace. In January 2017, this exchange was shut down and OneCoin denied the majority of withdrawal requests.
What Is Bitcoin?
Bitcoin is the first digital currency that was released in 2009. Satoshi Nakamoto is the developer of Bitcoin. He has managed to create a decentralized system that doesn’t require a single administrator like the banks and governments. Instead, Bitcoin uses a peer-to-peer computer network to complete the transaction between two users. Traditional currency is regulated by the government that issues it. But, Bitcoin is controlled by a network of individuals and powered by peer-to-peer technology. So Bitcoin is a currency made of codes with an application programming interface (API), price index, and exchange rate.
Since its establishment, Bitcoin has come through lots of elevation in its user base and it has become a user-friendly and popular form of cryptocurrency. In fact, bitcoin has become the trusted storehouse of lucrative investments which OneCoin was never able to. Moreover, Bitcoin payments are globally accepted by online and offline retailers all across the globe. There are also Bitcoin debit cards that also prove to be useful means of all transactions.
Difference Between OneCoin And Bitcoin
There are many ways, Bitcoin is different from OneCoin. Let’s check them out!
Fluctuations In Value
Compare to other cryptocurrencies, Bitcoin experiences frequent valuations in value. One of the main reasons for this fluctuation is the level of demand on the market for Bitcoin. Sometimes these frequent valuations in value cause problems for sites that accept Bitcoin payments. They have to change prices continually that might cause a lot of confusion among sites and consumers. Sometimes the high value makes it impossible for people to poses Bitcoin. Therefore, Bitcoin has become an undesirable currency for online trade. On the other hand, there are no fluctuations in the value of OneCoin. Compared to Bitcoin, OneCoin is also available in smaller denominations which are very convenient. However, the problem with OneCoin is, it is still in its early stages and it is not enough stable compared to Bitcoin.
Exploitation For Theft And Fraud
Bitcoin is based on blockchain technology which is pseudo-anonymous, unregulated, and decentralized. These are some key features of Bitcoin that make it attractive to most users but at the same time also make Bitcoin weak and vulnerable to scammers. Some common examples of Bitcoin scamming are fake Bitcoin wallets, hiding malware, lost wallets, etc. Sometimes, users download unknown wallets and inject their computers with malicious software. Moreover, the anonymity of BTC users also creates opportunities for scams during transactions. It also increases the criminals using of Bitcoin like launder money for drugs, theft, etc. On the other hand, OneCoin has a more secure and advanced algorithm compared to Bitcoin. It uses “know your customer” (KYC) procedures which prevent money laundering and other scams and criminal activities.
Investment And Transaction Costs
There are significant differences between Bitcoin and OneCoin in terms of investment and transaction costs. You will require lots of money if you want to invest in Bitcoin, or buy Bitcoin or mine Bitcoin. If you want to mine Bitcoin then you have to purchase or hire mining equipment. Moreover, the transaction costs of Bitcoin are also very high and they usually change with fluctuations in the price of a currency. For example, if the price of Bitcoin goes up then the transaction fees also increase. Moreover, the total pool of BTC coins is controlled and is currently at 21 million. On the other hand, OneCoin investment is much cheaper. You can mine OneCoin. So, individuals don’t need to invest in mining equipment to obtain coins. Moreover, the price of OneCoin is growing continuously so it might have a good future. The total number of OneCoin can be mined is 120 billion which is 5000 times more than Bitcoin coins.
Bitcoin is dominating the crypto world so it is expected that the founder of Bitcoin is a well-known personality. But, this is not the case for Bitcoin. The programmer(s) that created Bitcoin remains mysteriously hidden and is only known by the name Satoshi Nakamoto. Crypto experts think that the developer therefore the founder identity is not clear for Bitcoin. On the other hand, the founder’s identity is clear as daylight for OneCoin. Dr. Ruja Ignatova is the founder of OneCoin and he is a renowned personality today. The transparency of founder identity also creates awareness regarding the company’s operations, goals, and strategies.
Comparison Of OneCoin And Bitcoin
|Release Data||2014||9 January 2009|
|Owner||Dr. Ruja Ignatova||Satoshi Nakamoto|
|Members||3.3 Million||1.2 Million|
|Supply||1.2 Billion||21 Million|
|Mining Capacity||1000/min||1/11 Months|
|Transaction Time||Less than 1 minute||1 to 24 hours|
FAQS About OneCoin VS Bitcoin
1. Is OneCoin A Cryptocurrency?
No, OneCoin is not a cryptocurrency. It was a cryptocurrency-based Ponzi scheme that was not actively traded. Moreover, users were not able to use the OneCoin to buy anything. The founder, Ruja Ignatova disappeared with 4.6 billion dollars and co-founder Sebastian Greenwood is in jail in the U.S.
2. Which Coin Can Beat Bitcoin?
There are more than 700 cryptocurrencies currently available and among them, Bitcoin is the undisputed king of the crypto world. Over the years many new cryptocurrencies challenged Bitcoin but none of them were successful to dethrone Bitcoin. However, according to many crypto experts, Ethereum has a good chance of surpassing the $660 billion market capitalization of Bitcoin and become the king of Cryptocurrency.
3. What Is OneCoin’s Price?
Currently, OneCoin doesn’t have any trade price because the founder of OneCoin Ruja Ignatova disappeared with 4.6 billion dollars in 2017 and therefore its trade is stopped. Before that, the price of OneCoin was $0.0008661.
4. Is RUJA Ignatova Still Missing?
Yes, Ruja Ignatova is still missing. Since 2017, she has been on the run from law enforcement, including the FBI. In 2019, she was charged in absentia by U.S. authorities for wire fraud, securities fraud, and money laundering. She received a penalty of 14 months suspended imprisonment for a crime and up to 90 years imprisonment for the OneCoin Ponzi scheme.
5. What Happened To OneCoin?
OneCoin was established in 2014 and it created great hype among the crypto investors. This currency had its own exchange and suddenly in 2017, the exchange was shut down without notice. Since then, the founder Ruja Ignatova is missing more than 4 billion dollars.
Last Updated on October 20, 2022 by Magalie D.
Magalie D. is a Diploma holder in Public Administration & Management from McGill University of Canada. She shares management tips here in MGTBlog when she has nothing to do and gets some free time after working in a multinational company at Toronto.