Cryptocurrency, in general, has seen a huge growth over the past 6 months. As of writing this post, the cryptocurrency market cap sits at $154bn. With Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) the top 3 cryptocurrencies of 2017. Today, we are going to discuss a particular cryptocurrency that’s flying under the radar right now. Has huge potential. An actual use case. And, you get it for FREE as well. We are going to discuss the GAS coin.
A Little Background about NEO and GAS
NEO was originally known as AntShares and GAS as AntCoins. Both were rebranded in Q3 of 2017. NEO, also referred to as “China’s Ethereum”, is basically a blockchain where trade agreements (or you can say Smart Contracts) can be written in any programming language. GAS, on the other hand, is a cryptocurrency that is distributed among people who are holding NEO in their respective wallets.
GAS is basically a token that is used to pay fees on NEO blockchain. If you want to do any transaction on the NEO blockchain, you have to pay a small fee in terms of GAS. GAS token is used as a fuel for these transactions.
Currently, NEO has a total supply of 100 million coins. Out of which, 50 million are currently in market circulation. GAS has a total supply of 100 million coins. Out of which, around 11,716,800 GAS tokens have been generated.
How GAS Coin is Distributed Among NEO Holders
When you buy NEO, you basically become a shareholder in the company. NEO shares cannot be divided (like, in satoshis), same as a share of the company is undividable. A share will always remain a whole number. Now, if you are holding NEO you also get dividends in the form of GAS. You get free GAS against every NEO you hold in your wallets. Please note that you don’t get GAS dividend if you hold your NEO coins in any exchange.
How is GAS Generated?
For every new block created on the NEO blockchain, there is a total of 8 GAS tokens generation for all the 100,000,000 NEO coins. This means that 8 GAS will be divided among NEO holders for every block created.
So, it means that GAS generation depends on the block generation rate. According to the NEO whitepaper, a new block is generated after every 15 seconds. Theoretically, this means that 8 new GAS coins will be generated after every 15 seconds. However, this is not a practical calculation of the GAS being generated.
The actual block generation rate is not 15 seconds. It depends on a number of factors including nodes, networks, processing power etc. That’s why the actual GAS Reward is usually lower than theory calculation.
How to Earn Free GAS?
As we have mentioned above, you can earn free GAS by managing your NEO tokens on the blockchain. That is by storing them on a desktop wallet like NEO-GUI or NEON wallet. You don’t get free GAS if you hold your NEO on any exchange.
If you plan to hold for longterm, then it is best to move your NEO to a secure offline storage or a desktop wallet from an exchange. This way, you can be assured that your NEO is safe in case an exchange closes its business or gets hacked.
How Much GAS Does One Neo Produce?
Let’s say that you store 1 NEO coin in your wallet. It will take roughly 3000+ days for 1 NEO coin to earn you 1 GAS coin. By this calculation, you’ll earn about 0.121472 GAS coin in a year. It’s not a big number but it is enough to cover the transaction fees on the NEO blockchain.
You can also calculate your NEO to Gas Rewards here >> NeoToGas.com
Should You Invest in GAS Instead of NEO?
Now the big question here is, should you invest in GAS instead of NEO coin? Even though investing in latter brings you free GAS coins? The simple answer to this question is Yes.
GAS coin future totally depends on NEO. The higher the NEO coin price is, the higher GAS coin price goes. Let’s just take a look at the factors that might lead to a bull run for NEO and for GAS as well.
NEO is backed by China and NEO blockchain has a lot of potential in it as well. The team behind NEO is very strong. It is working very closely with the Chinese government. And It has a limited total supply.
Now imagine that China regulates cryptocurrency market and makes NEO coin the official blockchain solution for Chinese people, imagine what it would do to the prices of both NEO and GAS coins?
But, many people forget one thing that GAS coin circulating supply is just 11% of its total supply and it will take roughly 22 more years to fully reward/mine GAS coins.
This means that only about 11 million GAS coins are available and can be used as transaction fees for 100 million NEO coins. The price of the GAS coin is going to skyrocket due to limited supply.
As for my personal opinion, I’ve been watching GAS coin when it was just $6 a few weeks ago. In just a few weeks, GAS went to its all-time high price of $33.41 per coin. As of writing this post, it’s still trading under $20.
Action To Take
I’d recommend GAS coin as a long-term hold. You can buy it at its current price of $20 and still get a decent return after a month or two. But I’d suggest that you buy and HODDDLLLL it for at least 6 months.
Disclaimer: Cryptocurrency market is highly volatile and unstable. Any suggestion or recommendation I make is solely based on my own assumption and facts that I've researched. You should invest at your own risk. Only invest what you can afford to lose.