Darkcoin has risen – and the news now is that it has grown to become the fourth biggest cryptocurrency, surpassing Dogecoin.
Since its beginnings four months ago, Darkcoin’s innovative privacy capabilities which have been constantly updated, have been gaining more and more followers as the true security of the Bitcoin block chain comes under increasing scrutiny.
Safety in numbers?
As of 14 May, one darkcoin was worth US$2.86, up from US$1.65 the previous week. Now, in light of the continuing popularity of the RC2 update to its privacy settings, Darkcoin is worth US$11.72, while its market cap has exploded from US$12 million to US$51 million in the same timeframe.
Creator Evan Duffield has remained pragmatic about his coin’s somewhat biblical rise, citing the rise in popularity of coordinators drawing in more users, added to the fact that the currency will most likely remain inhospitable to non-CPU miners for several years to come, as ForexMinute notes.
All this may sound somewhat familiar, however, and the term ‘speculative bubble’ cannot be too far from the lips of many critics, who will also be actively considering the scope for witnessing just another pump-and-dump altcoin.
But Darkcoin nonetheless has its advocators. Bitcoin consultant Kristov Atlas told Wired that “There’s some solid indications the market price is currently based on the fundamental value of the coin,” while trader Allen Price continued, “I had sort of smugly stood to the side waiting for the big, inevitable crash with an ‘I told you so’ ready. But no crash ever really came, and it’s been kind of an ongoing success for investors.”
While the cocktail of increased privacy to match users’ demands, the possibility for private mining and supply being limited by virtue of the coordinator feature makes Darkcoin a stable bet, the pressure will now be on to ensure that conditions remain favorable to all.
If this is achieved, Darkcoin could quickly ascend the ranks to provide a major alternative currency.