HOUSTON, March 10, 2019 /PRNewswire-PRWeb/ -- Bitcoin Oil (BTCO) announces further details of its "Optimally Improved Ledger" (OIL) by unveiling details of its forthcoming algorithm. Historically, Bitcoin (BTC) has been extremely volatile, which Bitcoin Oil believes limits its capabilities for mass adoption and in turn its usefulness as a medium of exchange and a reasonably stable store of value. Hence, BTCO's team considers price stability and reduced volatility as the pathway to Bitcoin mass adoption.
By leveraging BTCO's Proof of Stake, or "PoS", algorithm, Bitcoin Oil believes that the adoption of BTCO by participants of the Bitcoin Oil distributed ledger network, or "Bitcoin Oil Network", will create one of the first true incentive-based ecosystems, enabling price stability through coin holder's holding of BTCOs. BTCO intends to implement such incentive-based ecosystems through Hodlers Rewards. BTCO plans to implement the Hodlers Rewards in three different tiers, and to incorporate these Hodlers Rewards in BTCO's algorithm as a reward in the form of BTCO coins:
- Holding (Tier 1): buying and holding BTCOs for some time.
- Staking (Tier 2): staking a certain amount of BTCOs.
- Participating (Tier 3): becoming a key participant of the Bitcoin Oil Network, including, for example, as a validator, delegator, etc.
Based on these three different tiers, BTCO plans to implement the Hodlers Rewards as follows: (i) holders of BTCOs that hold and not transfer their BTCOs for certain period of time will be able to receive Hodlers Rewards, which represents a Tier 1 reward, (ii) holders of BTCOs that are eligible for Tier 1 reward may receive additional Hodlers Rewards if such holders also stake their BTCOs for a chance to participate in the operation and security of the Bitcoin Oil Network, and (iii) holders of BTCOs are eligible for Tier 2 reward may receive additional Hodlers Reward as Tier 3 reward, if such holders participate in the security and operation of the Bitcoin Oil Network, including, among other things, acting as a validator or delegator.
We believe that the three-tiered reward of the Holdlers Rewards program will create the right level of incentive to encourage holders of BTCOs to continue their engagement with the Bitcoin Oil Network on a long-term basis. No other cryptocurrency offers such a reward structure as part of their algorithm DNA. BTCO believes that the Hodlers Rewards program will likely reduce the price volatility of BTCO, which in turn will result in BTCO being a uniquely-positioned cryptocurrency that will become more useful as a medium of exchange and a reasonably stable store of value. Hence, BTCO is creating stability through an economy of incentives with an improved structure of Bitcoin's blockchain enhanced with entirely new algorithms and technologies. BTCO holders will now for the first time ever not just be rewarded for loyalty but be playing a part in creating a true stable coin.
In addition, BTCO will introduce its transaction-based "oil cost" which will be paid to BTCO's network participants (analogous to "gas prices" of other cryptocurrencies). The concept of BTCO's "oil cost" was developed to keep a distinct value that solely indicates the consumption towards computational expenses on the blockchain. To draw an analogy, running a real-world car for X miles may require Y gallons of fuel, or moving X amount of money from one bank account to another may cost Y dollars in processing fees. In both cases, X indicates the utility value, while Y indicates the cost of performing the process of the car trip or financial transaction. Likewise, a transaction on BTCO may be worth 25 BTCO (X), and the fee to process this transaction at that time may be for example 1/100 BTCO (Y), whereby the actual transaction fee ("oil cost") is determined by the formula (OilCost = OilConsumed x OilPrice). Hence, BTCO participants, who perform the important tasks of verifying and processing a transaction, will be awarded this transaction fee ("oil cost") for their computational services as Tier 3 reward of Hodlers Rewards program.
To a large extent, high fees became another problem for Bitcoin (BTC). As fees climbed, some users looked for alternative cryptocurrencies while others stopped using BTC altogether. And as BTC's transaction fees continued to rise even further, more and more users and companies made them a top priority. As a result, these high fees have encouraged many companies to simply stop using BTC and shift to other blockchain networks – like Litecoin, Ethereum, or Bitcoin Cash – where transaction fees are much lower, which is obviously not a positive sign for BTC's long-term future (even though reports show that the average BTC transaction fee has fallen to $0.244 as of February 16, 2019, this amount is still significantly higher than comparable fees in other networks and still way too high for low-cost driven mass transactions, especially as BTC's fees are highly volatile since its peak on December 23, 2017, when the average transaction fee exceeded $54.90, leaving many users extremely skeptical about future BTC fees). Hence, BTCO's innovative "oil cost" fee structure represents another important market-driven innovation which helps on the one hand to drastically increase the cryptocurrency's attractiveness for users (e.g. enabling micro-payments and other low-cost driven mass transactions on BTCO) and on the other hand to create the right level of incentive through the Hodlers Rewards program for network participants.
"We are not here to be 'just another cryptocurrency' – we are here to be the ultimate evolution of Bitcoin," Hannah Paddock, BTCO's Chief Marketing Officer (CMO), explained. "Often, it takes a revolution to create a solution, and BTCO is most certainly doing just that. So, for the first time, a cryptocurrency like BTCO is creating real stability through loyalty, an imperative component to be fit for the future. We aim to achieve mass adoption where hundreds of millions of wallets will speak for the strength of our strategy. And for the first time in Bitcoin history, we will avoid extreme volatility and be considered a legitimate medium of exchange for holders of BTCO" Hannah Paddock continued.
Already in some other cryptocurrencies staking creates an incentive for holders to remain with and continue to participate in such platform as they can earn a percentage of their staked assets on a monthly, quarterly or yearly basis [(whereby these earnings currently range from 20% to 50% or even 99% which is going to be optimized in BTCO's PoS algorithm)]. What's even more unique about BTCO's incentive-based ecosystem is the so-called "time warp factor" by which the Hodlers Rewards ratios for holding, staking, and participating will increase at the end of each full quarter by a pre-determined amount. The distinctive combination of the "time warp factor" on the x-axis and the fixation of three reward tiers on the y-axis is expected to result in greater price stability of the BTCOs as significant numbers of BTCO will be locked away and stored off the market for considerable amounts of time which will subsequently and constantly tighten the overall BTCO supply.
"While Bitcoin (BTC) currently pays large amounts of new free Bitcoins (BTC) for each newly mined block to its miners, BTCO intends to convert from this unsound PoW protocol and implement PoS which will enable BTCO to eliminate such mining-based dilution and drastically reduce inflation as future incentives will be differently awarded than current mining rewards," Hannah Paddock outlined. "This change to PoS creates extremely valuable reward capacities and enables BTCO to optimize the allocation of such rewards by shifting incentives from huge mining monopolists to each and every BTCO holder on a transparent, equal and fair pro-rata basis," Hannah Paddock continued.
Primarily the price of BTCO will be determined by the simple and effective rules of supply and demand. As the maximum supply will be capped in general and as the available circulating supply will be reduced in particular through the aforementioned reward structure, any market pricing models based on ceteris paribus analysis lead to the assumption that BTCO's price is going to be more stable and less volatile than the current and historic market of Bitcoin (BTC), which BTCO believes will pave the way for BTCO's mass adoption.
This progress is based on the Hodlers Rewards part of the algorithm which creates stability through loyalty and reward program for participation in the Bitcoin Oil Network. Daily price swings of 10 to 20 percent or more are not uncommon among Bitcoin (BTC) and other major cryptocurrencies, making them exceptionally volatile in comparison to fiat currencies or government bonds. This inherent volatility means users run the risk of the value of their assets being eroded, which has turned out to be one of the major obstacles for Bitcoin's (BTC) mass adoption in the last decade.
Rewarding BTCO holders incentivizes long-term retainment of BTCO, which will create the stability Bitcoin (BTC) so desperately needs. Hence, BTCO believes a provable way to temper the historical instability would go a long way for the masses to view BTCO as the most legitimate version of Bitcoin and pave the way for its true mass adoption. Supplementary incentives for holders will include additional non-monetary, qualitative bonuses, e.g. BTCO holders will be part of the BTCO family and enjoy exclusive access to information, insights and other privileges at Hodlers-Rewards.com, which will be the exclusive platform for all BTCO holders.
About Bitcoin Oil
Bitcoin Oil is a developer of innovative blockchain and ledger technology aimed at the improvement of Bitcoin. Bitcoin Oil is the creator of Bitcoin Oil, a new cryptocurrency based on the Bitcoin network with optimally improved ledger through the use of its "SSPSS" improvement strategy. The centerpiece of Bitcoin Oil and its "Optimally Improved Ledger" (OIL) will be the highly innovative "SSPSS" strategy focusing on the development and implementation of essential Bitcoin improvements in the fields of Stability, Sustainability, Privacy, Smart Sidechains, and Scalability, or "SSPSS", including but not limited to key new Bitcoin blockchain features such as (i.) minimizing Bitcoin's volatility (i.e. by connecting it with stable off-chain values), (ii.) drastically reducing Bitcoin's insane energy consumption (i.e. by altering the consensus protocol to PoS), (iii.) implementing true privacy features (i.e. by enabling confidential transactions), (iv.) empowering Bitcoin based ICOs and STOs (e.g. by employing full smart contract functionalities), and last but not least (v.) developing cutting-edge scalability solutions (i.e. by complete integration of layer 2 protocols and offline transactions). To learn more about Bitcoin Oil, please review our next press releases as well as our forthcoming white paper, or if you are interested in purchasing Bitcoin Oil, please contact us at [email protected] or call us at +1-8777-BITCOINOIL.
This press release shall not constitute an offer to sell or the solicitation of an offer to purchase any coin, Hodler Reward or right described herein, nor shall there be any sale of these coins, Hodler Reward or rights in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
This press release contains information about pending transactions, and there can be no assurance that any of these transactions will be completed in accordance with the terms described in this press release or at all.
This press release contains information about a possible hard fork of the Bitcoin network. Neither the Bitcoin Oil or such other crypto-asset generated through the hard fork nor the Bitcoin Oil or such other crypto-asset generated thereafter by any other method will be registered under the Securities Act of 1933, as amended, or the securities laws of any other jurisdiction and may not be offered, sold, pledged or transferred within the United States or such other jurisdiction without registration or an applicable exemption from such registration requirements. Even though Bitcoin Oil intends to deliver and distribute certain bonus to the record holders of the Bitcoins then existing on the Bitcoin network and/or certain Hodler Rewards to the record holders of the Bitcoin Oil then existing on the Bitcoin Oil Network, such delivery and distribution may be restricted or prohibited by laws of the jurisdiction in which such holders reside or such distribution or delivery may result in Bitcoin Oil being required to register under the Exchange Act of 1934, as amended, or the securities law of any other applicable jurisdiction. We are in the process of assessing regulatory requirements for the delivery and distribution of such bonus of Bitcoin Oil to the then holders of the Bitcoins as part of the hard fork and the delivery and distribution of certain Hodler Rewards to the then holders of the Bitcoin Oil as part of Bitcoin Oil's reward program and there can be no assurance whether we would be able to make any delivery or distribution, or at all, to any such holder in connection with the hard fork or such reward program, as the case may be.
This press release contains statements that are forward looking (such as when Company describes what it "plans," "believes," "intends," "seeks," "aims," or "anticipates" will occur, what "will," "potentially," or "could" happen, and other similar statements or the negative of such terms or statements), which may not be correct, even though Bitcoin Oil believes that they are reasonable at the time of this press release. Bitcoin Oil undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made.
Attn: Media Relations
Ms. Hannah Paddock (CMO)
Email: [email protected]
Attn: ICO Information
Ms. Hannah Paddock (CMO)
Email: [email protected]
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SOURCE Bitcoin Oil