A Beginner´s Guide to Buying, Selling, Using, and Mining Gnosis:
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Cryptocurrencies have evolved far beyond a simple investment platform. Now they are being tapped into by already existing industries, looking to expand their field to a platform that is untapped. For example, applications can be built on blockchains. That means that there is a whole new field for app developers to utilize their skills upon.
The same is also true for prediction markets. The basic idea behind prediction markets has been around for ages. Odds are set based on the relevant data as well as voter trends and history. This creates a number that people are willing to bet on their outcome becoming a reality. Now, that same concept has been brought into the cryptocurrency world. However, just like everything within cryptocurrency, it has its own unique twist.
Gnosis (GNO) is a prediction market forecasting tool that allows users to buy shares in the outcome of an event that they think will happen. These shares are purchased in the form of a WIZ token, which is received in exchange for GNO tokens. The odds for the event aren’t made by a booking agency as is typically done with traditional bets, but by the supply and demand determined by the public at large.
Gnosis is a cryptocurrency built on the Ethereum platform, meaning Gnosis tokens are purchased with Ethereum. A cryptocurrency is a digital currency that is represented by coins and built on a blockchain. The definition of a blockchain is the ledger providing the transactions and history for a coin. There are many descriptive websites that help to further define Gnosis, Reddit being an example.
When you’re ready to jump in, Gnosis can be purchased through just a few simple steps. First, you’ll need to download the Gnosis lite wallet, which is available for free through their official site. Next, you’ll need to purchase Ethereum. This can be done either through Coinbase or Cex.io. Because Gnosis is based on Ethereum’s blockchain, this is the currency you’ll trade into Gnosis. Ethereum can be purchased with cash or credit card.
Kraken will allow you to transfer your Ethereum into Gnosis. Finally you’ll need to provide your wallet address from your Gnosis lite wallet to place your new Gnosis coins into your wallet.
When the time is right, you can cashout your Gnosis to USD or any other fiat currency of your choosing. Simply follow the above steps in reverse, with an additional step to follow. Kraken will allow you to transfer your Gnosis back into Ethereum. Then convert the Ethereum into Bitcoin. From there you can sell your Bitcoin and turn it into cash. Finally, take a trip to the local ATM and withdraw your cash.
There are many ways to use Gnosis. The obvious way is to use it as a prediction forecasting platform. Or in other words, a gambling site. If you are confident in the outcome of a sporting event, election or even the growth of another cryptocoin, you can bet on the outcome through Gnosis. If you’re right, you’ll receive more Gnosis tokens. If you’re wrong, you’ll lose the GNO you gambled. Gnosis can also be used by a company to determine the best way to advertise a product or help with the design of a product.
Bets are made with WIZ (abbreviation for wisdom) tokens. WIZ tokens are traded for with Gnosis tokens. Once you’ve been able to trade your Ethereum for Gnosis, you’ll lock it down in order to receive WIZ. You’ll receive 30% of the WIZ up front, while the other 70% will come in later. WIZ is used to pay trading fees and bet on events, among other things.
Gnosis can also be used as a method of investing. Gnosis can be purchased and stored in your wallet while the value of the currency grows. Then you’ll be able to see how the coin has grown in value by looking at the exchange rates into other coins and currencies. The more coins you have, the more you’ll be able to use them for trading into other cryptocurrencies. This is helpful when playing online games like Gnosis poker.
Cryptocurrency mining is contributing to the blockchain of the coin. Gnosis is built on the Ethereum blockchain, so part of Gnosis mining profits Ethereum’s blockchain. During the original GNO ICO, investors purchased $12.5 million Gnosis tokens at a price of $29.85. This gave GNO a market cap of $298.5 million. The cap of $12.5 million was reached in just ten minutes. 90% of the GNO in existence is held by Gnosis LTD, and will be issued as incentives for developers to build applications on top of the GNO blockchain.
Miners can also mine ETH, and use calculators powered by specialized computers to mine the coin. There is a learning curve to mining, but the payoff is pretty high. Minors are rewarded with more of the Gnosis coin, which can be a great value depending on the price and growth of the coin.
Traditionally, the return for mining a coin is based on the market cap. The more the community at large works on and mines a coin, the more the market cap for that coin grows. When the market cap grows, so does the profitability of mining. A form of mining takes place with Gnosis when you report the outcome of an event. This helps validate what actually happens, as the user is incentivized with more Gnosis coins, directly from Gnosis LTD. Using the platform, and building on the platform, both result in a form of mining as coins are issued to users.
Gnosis’ ability to scale will be directly related to Ethereum’s ability to scale. This is due to the fact that Gnosis is built on Ethereum’s blockchain. Recent debates with scaling show that the community is extremely invested on finding a solution to this important issue.
Prediction markets are nothing new. Gnosis is just one example of how a group of people have taken an existing industry and combined it with a new field for that industry to exist on. Gnosis will be a popular way for people to bet on the outcome of events, not only with money, but with cryptocurrencies.