Please be aware:
We track Bitcoin prices except when our algorithm forecasts that Bitcoin prices are likely to fall. If the forecast is correct then our Target Price is now higher than Bitcoin.
It may not seem possible to predict when Bitcoin prices are likely to fall. People have been educated to believe that prices, like many other aspects of life, are random. Yet prices develop over time as do other systems. Few people doubt that the pattern that forms an oak leaf will continue to repeat itself as an oak tree grows year after year. No one doubts that sowing the seed of a carrot will produce a carrot. Its shape and size may be influenced by environmental factors such as water, sunlight and nutrients, but no one doubts that a carrot seed will produce a carrot and never a beetroot or onion.
Phi, the irrational number of 1.618…, also called the Golden Ratio and Golden Mean, is the expression of growth in the natural world. The particular way various Phi ratios are combined together determines whether the process of development produces a frog or a rat. Nature is super-efficient in using Phi as the universal expression of growth. Continue reading...
A forecast for a period of falling prices is made before the period begins. To ensure this priority in a trustless way we time-stamp the forecast on a blockchain using a service such as https://originstamp.org/. The forecast is then published on the Bitcoin Enhanced website and forums such as Facebook and Twitter in an encrypted form. When the forecast is complete we release the key in order for anyone to validate the forecast was genuine and made before the event.
Important: simulated performance is NOT a good indicator of future performance.
On 13th September 2013 Bitcoin stood at $5.93. By 14th February 2018 it had risen to $9,071, an average annual increase of 237%. However during the same period the value of Bitcoin Enhanced would have risen to $136,741, an average annual increase of 21,265%. In this simulation the value of Bitcoin Enhanced improved the value of Bitcoin by a multiple of 15.
“It began in 2007 with a crisis in the subprime mortgage market in the United States, and developed into a full-blown international banking crisis with the collapse of the investment bank Lehman Brothers on September 15, 2008. Excessive risk-taking by banks such as Lehman Brothers helped to magnify the financial impact globally. Massive bail-outs of financial institutions and other palliative monetary and fiscal policies were employed to prevent a possible collapse of the world financial system.“ Wikepedia .
The cornerstone of any sound way to grow money is diversification – not having all your eggs in one basket. Because most money is fiat (issued by governments) most investments carry the risks associated with the fiat financial system. Here are three of the most important of these risks:
inflation, systemic institutional failure and regulation.
Although not without risks themselves, crypto-currencies and tokens avoid these fiat risks and therefore enable greater diversification of a portfolio. Continue reading...
We have designed Bitcoin Enhanced to as far as possible avoid the risks of the fiat financial system. This has been done by:
No underlying assets. If we used our forecasts like a traditional hedge fund to provide you returns by trading Bitcoin and shorting Bitcoin Futures we would involve you in the fiat financial system through the need to hold futures contracts (to short Bitcoin) and to use brokers to execute the trades. Instead the token relies on the intent of the token holders to transact at the Target Price of the simulated long/short Bitcoin strategy.
The largest and most liquid financial markets in the world are the currency markets where back in June 2014 an estimated $1.7 trillion dollars was being traded every day. Every dollar of those trades is belief-based as every currency in the world, fiat or crypto has value because people believe they have value. Bitcoin Enhanced uses the same mechanism to provide the opportunity to create returns free from the risks of the fiat system.
A blockchain token. Our tokens are on the Waves blockchain. This removes the need for any central authority to manage them – even us. Being decentralised they are also largely immune to regulatory pressures. If there was systematic failure of fiat institutions the Bitcoin Enhanced tokens would be unaffected.
Token number capped. We have capped the number of tokens at 4 million for both BE Classic and BE Growth. This creates scarcity as well as prevents the inflation that is endemic to fiat currencies.
Not a security. While we make no representation or warrenties that this is the case, we expect the tokens not to be classed as a security in most countries. Changes to security regulations would therefore be unlikely to affect the tokens. This increases the number of people able to participate without violating the laws of their country.
A key reason why the tokens are unlikely to be classed as a security is that you the token holder, not us, create its value. Any profit you receive from the tokens is created by you and other token holders when you trade the tokens. The purpose of the token is to trade at or close to the Target Price but there is no formal linkage between this target and the tokens' value. The creation of value rests with token holders themselves
The fact that people, not governments, give currencies and other financial products value is the greatest open-secret of our time.
The value of currencies such as Bitcoin, Monero, or the USD and Euro are all determined by buyers and sellers. In the same way there is no formal linkage between the Target Price and the price the Bitcoin Enhanced tokens trade at on exchanges. While the purpose of the token is to trade at the Target Price like currencies only buyers and sellers of the Bitcoin Enhanced token determine the actual price.
Until Bitcoin it was assumed that only governments can make money. Bitcoin showed that it is people, not governments, who invest a currency with value. Bitcoin Enhanced takes this human capability one step further to see if people can trade a token at or close to a published value – the Bitcoin Enhanced Target Price – to hold an asset without being exposed to the risks of the fiat financial system. In effect the Bitcoin Enhanced tokens are self-generated systems of value – something that before Bitcoin it was assumed only governments could do.
Jeanne Achterberg at the University of Texas Health Science Centre tells a story of a woman already paralysed and in a coma when she was admitted to hospital with a massive brain tumour. Surgeons removed as much of the tumour as possible but, because she was considered close to death, she was sent home without radiation or chemotherapy.
When doctors tell a patient that they are going to die, they usually do. Only this woman did not. Instead she grew stronger every day and within sixteen months there was no sign of cancer. She even went out dancing a couple of times.
Hospitals and doctors exist to cure sick people. Yet here was a woman who decided to cure herself. What does her story teach us about the way money is made?
There are around 180 fiat currencies in the world. Until 2009 it was generally assumed that currencies could only be created by governments. Then an unknown person going by the name of Satoshi Nakamoto found an elegant way of ensuring everyone knew how much of a “coin” they owned without the need for a centralised authority. Bitcoin was born. Today each of these pieces of cryptographic code is trading above $6,000. Continue reading...
BE Growth is for people who want to follow in the footsteps of Bitcoin. Starting from zero the aim of BE Growth is for the price to increase until it reaches the Target Price.learn more..
BE Classic is for people who want the assurance that all tokens are sold at the Target Price. There are no discounted tokens.learn more..
BE Growth is for people who want to follow in the footsteps of Bitcoin. Starting from zero the aim of BE Growth is for the price to increase until it reaches the Target Price. There are 4 million tokens in all. The first 40,000 are given away free. The next 40,000 are sold at a 99% discount to the Target Price. The next 40,000 at 98% of the Target Price and so on until all 4 million are sold.
BE Classic is for people who want the assurance that all tokens are sold at the Target Price. There are no discounted tokens. While this means that liquidity is likely to be low to begin with, we know every token holder wants to trade at the Target Price because this is what they have bought their token for. Like BE Growth, BE Classic is hard capped at 4 million tokens.
Once BE Growth tokens reach the Target Price having two tokens enables arbitrage between them. If one token is lower than the other it will be bought while the higher valued token is sold, the difference between the two being the profit on the trade. The arbitrage opportunity may help sustain the tokens at the Target Price.
Any time you part with money hoping to create more there are always risks. Please know the risks associated with Bitcoin Enhanced before you buy. Continue reading...
Here are some of the main risks you should consider before you buy. Every person’s financial situation is different. If you are unsure we suggest you seek professional investment advice.
People don’t believe in the token. Like crypto and fiat currencies, commodities and real estate the price of the Bitcoin Enhanced investment token only grows if people believe in the token. If people do not believe in either the future performance of the investment strategy, or in the ability of token holders to trade at or close to the Target Price, the token’s value could fall.
Regulatory Risk. It is possible that regulators in different countries change their laws making it illegal to buy or own BE tokens.
The long/short strategy does not perform. If the forecasts of when Bitcoin prices are likely to fall are wrong more than they are right the Target Price of Bitcoin Enhanced will be below that of Bitcoin.
Bitcoin prices fall. If Bitcoin prices fall then, because Bitcoin Enhanced tracks the Bitcoin price for most of the time, it is also likely to fall.
Liquidity. Your investment should reflect the fact that there may be times when you may not be able to exit quickly. Especially in the early stages of the BE Classic token, there may be a shortage of buyers for your token if you want to cash-out. Liquidity may also be an issue at other times, such as when the Target Price is falling and there are more sellers than buyers of the token. We do not intervene on the exchanges to provide liquidity or to support the price of the token.
Internal and external threats. Even though Bitcoin Enhanced tokens are written to the Waves blockchain they are still open to the risks of hackers tampering with the forecasts, the Target Price, and the wallets containing the tokens. Internal threats of theft and fraud are also possible. To counter these threats Bitcoin Enhanced automates as many processes as possible to make them “human proof”.
There are two kinds of physics, fermion physics and boson physics. Fermion physics has to do with particles that make up matter. Boson physics has to do with superconductors and the zero-point field. Because all the particles that make up matter draw their energy from the zero-point field, for example the energy that keeps electrons spinning, fermion physics is a derivative of boson physics.
A similar situation exists in finance. In finance there are two classes of instrument, asset-based instruments and belief-based instruments. Asset-based instruments are those that derive their value from another instrument that already has value. Belief- based instruments are those whose value is self-generated by users who believe they have value. Because all asset-based instruments derive their value from other instruments that already have value, and because belief-based instruments are the only form of instrument where value is self-generated, asset-based instruments are derivatives of belief-based instruments.
Money may be the most remarkable demonstration of people’s ability to shape the world with the power of their belief, but it is not the only one. Athletes visualise their way to peak performance, people heal themselves of incurable disease, people walk on fire without pain and entrepreneurs create their dreams. At Bitcoin Enhanced we are on a mission to wake ourselves up to the power of belief to create our world. Join us on the forums as we learn more of the extraordinary feats people have achieved throughout history. And inspire us with your story. Working together is how great things grow.
With the Phi algorithm we could have started a traditional hedge fund buying and selling assets and taking a fee from the returns. We choose not to do this because it would expose our clients to the risks of the fiat financial system – a system we believe is not looking too healthy.
We would have needed to interact with brokers and financial institutions. We would have needed to buy Bitcoin futures, a financial derivative. We and our clients would have been heavily regulated – regulations that we have seen can rapidly change, not always in the best interests of investors. The same regulations would have prevented many people from participating in the returns generated by the token.
Instead we decided to take a road less travelled to see if investors like you can trade a token at a Target Price.
Tether, the crypto-currency that is pegged to the US dollar has already demonstrated that belief-based assets can track a specified price.
Every day the more than $80 trillion dollars of broad money (Including coins, banknotes, money market accounts, saving, checking and term deposits) circulates the world – each cent of value existing only because people believe it does.
Are the current risks of the fiat financial system the wake-up call we need to realise that we, as people, create our world from what we believe? We, like you, want to discover what we are truly capable of.