What is Novacoin (NVC)
Novacoin is a virtual currency, just like LTC it uses scrypt hashing and thus it can be mined in the same way as Litecoin by CPU and GPU. It has been created by bitcointalk user Balthazar. Currently it is performing pretty well, selling for higher prices than LTC with lower difficulty on the network. This makes it worth it to mine NVC instead of LTC and transfer them into BTC to minimize the risk. New coins, especially when claimed to be a scam have a risk to drop in price suddenly or be can 51 attacked. At the current hashrate this is not a big risk though unless several big pools decide to do so together.
Is Novacoin a scam?
There have been claims that over 200.000 coins were premined by the developer. The developer has claimed that only 60.000 coins have been premined but apparently BTC-e admitted that they got 100.000 coins to accept this currency on their exchange. This does not directly mean the coin is a scam, some cryptocurrencies with premined coins have survived. It only means that (if the numbers are correct) the developer can easily cash out 100k coins and make a lot of profit. In some cases trust in the coin is lost as was with solidcoin. However, other cryptocurrencies with premined coins have survived. If you want to stay on the safe side while mining Novacoin you just have to make sure you don’t keep too many of these coins and exchange them in to something else like BTC.
Novacoin mining is done in the same way as Litecoin mining, you can check out my guides here:
Novacoin mining pools
There’s currently a few pools out there for Novacoin, here are the links:
Coinotron used to support Novacoin but stopped to do so after continuing DDOS attacks due to supporting it.
At this moment it can only be traded at BTC-e