Virtual Mining Coin is another brand new Cryptocurrency, it is somewhat unique but at the same time its future is uncertain. Virtual Mining Coin uses the Scrypt-N algorithm, which is similar to Scrypt except it resists ASIC miners. ASIC miners are the newest line of mining rigs, which are many times more powerful than the traditional GPU and CPU mining rigs, and are taking over the supply of mined coins. Not allowing ASICs to mine a coin is somewhat controversial, but GPU and CPU miners support it.
Virtual Mining Coin is a pure proof of work (PoW) coin, and thus the only way to generate new coins is by mining. There is going to be 100 million coins total. There will be 171.2 Virtual Mining Coins per block, and a new block every 60 seconds. Such a low amount of supply should result in increased market prices. 8% of the coins will be premined for an IPO, with 2% going to the developers for ‘maintenance’. This ensures that IPO participants and developers will have many times more coins than any miner or other investors for awhile.
The unique thing about Virtual Mining Coin is it’s going to invest its IPO (Initial Public Offering) money into mining Bitcoin, via the site cex.io which is a well known and reputable cloud mining site. The Bitcoin earned will then be reinvested in cex.io to continually increase mining power. The developer of Virtual Mining Coin says this will increase the value of the coin.
The only thing that doesn’t make sense about this is how will Virtual Mining Coin gain any value if all the Bitcoin that is mined will simply go towards more mining power? At no point will any of that revenue go towards supporting the price of the coin, at least the way the developer describes it. It would make more sense to buy Virtual Mining Coin on the exchanges with the mined Bitcoin, which would directly increase value. Either way, the developer will be the one taking almost all the profit from mining, which isn’t fair to anyone investing in this.
Additionally, IPOs for Cryptocurrencies are notorious for often being scams. Developers have gotten Bitcoin for the IPO and then abandoned ship before releasing the coin, and stole all the Bitcoins invested. This happened with Stack Coin and Edge Coin, hopefully it does not happen with Virtual Mining Coin. Virtual Mining Coin is allowing direct investments without an escrow, which is somewhat suspicious. However the developer of Virtual Mining Coin will make far more money if he goes through with his plans, so I tend to think it’s not a scam. Over 11 BTC has been invested into Virtual Mining Coin, which is around $5000.
Virtual Mining Coin is going to be released within a few hours, and there’s plenty of discussion about it on Bitcointalk: https://bitcointalk.org/index.php?topic=582873.0