So you have purchased one or more Bitcoin packages from USI-Tech, since when the price of Bitcoin has tumbled… and now you are anxious, maybe even worried.
Should you be concerned?
Well, lets start at the very beginning.
A BTC Pack is a product you buy directly from USI. The payment method is Bitcoin (BTC) and the returns are paid in BTC, hence the name “BTC Package”.
The purchase represents a contractual relationship in which YOU buy this product called a BTC Package (Pack) directly from USI and pay USI in BTC.
In return USI agrees to pay you back 140% of that BTC purchase amount, paid daily at the rate of between 0.7% and 1.25% per working day, on a best efforts basis. Once you have received a total of 140% of your BTC purchase amount the contract is finished / complete. Pack returns are paid to your USI back office wallet working days Tuesday to Saturday. You can withdraw your BTC balance in your USI wallet at any time provided the BTC amount is greater than the equivalent of €100.
A Pack costs €50 and the amount of BTC contained in the pack will be determined by the price of BTC at the time you bought it.
Let’s get the technical stuff out of the way and look at what that means over time:
- I bought one of my first packs in April 2017 when the price of BTC was around €1,200 – so my early packs contained approximately 0.04BTC.
- Each time I purchased a new Pack and as the price of BTC rose throughout the year, each new €50 Pack purchased less an less BTC. So, for example a Pack that I bought just before Christmas 2017 (when BTC was about €14,000) only contained approximately 0.0032BTC.
- Yesterday, 4th February 2018, the price of BTC had fallen back to about €7,000. So when I bought a Pack I got 0.0072BTC for my €50.
If the average return of capital (ROC) was only 0.8% per working day in the above examples:
- I get 0.000032BTC per working day
- I get 0.00000256BTC per working day
- I get 0.00000576BTC per working day
Clearly, we get a larger return per working day for our €50 purchase when we buy Packs at a time when BTC price is low against the Euro. And we continue to get the same % return irrespective of whether the price of BTC rises or falls.
Added to which…
Bitcoin is powered by computing. It’s electronic. Its price can fluctuate in milliseconds. It is not yet widely accepted as a currency. It’s perceived value can fluctuate wildly, subject to human frailty.
Bitcoin is volatile!
USI-Tech trading software is powered by computing. It’s electronic. The software can react to price fluctuations in milliseconds. It has no perception of human frailty.
In other words, USI-Tech trading software generates Bitcoin profit… whether the market’s human perceptions go up, or down.
In reality and over time, the more volatile is the market the greater the availability of return of capital USI software can generate. Indeed, a constantly rising (or falling) market is not in our best interest.
All of the above only becomes a concern when it’s time to turn your purchase of Packs into something else.
How much BTC do you have?
What is that value compared with the other commodity?
How much do you want this other commodity?
If you are not yet at the point of wanting to turn your crypto currency into another commodity or fiat currency. And if you believe (as I do) that Bitcoin will never have a zero value compared with fiat…
Just relax – buy new Packs when you can – Re-buy whenever possible.
Let the USI software do its job.
Don’t try to swim against the Whales.
The first regulated Bitcoin “product” came about when the Chicago Board Options Exchange (CBOE) launched Bitcoin futures contracts in mid December 2017. Soon after Hedge Fund Managers along with the wealthy elite (the Whales) started buying Bitcoin in the millions in order to drive the price up to an all time high of US$19,000 knowing they would short the first futures contracts.
The first Future Market was set at US$15,000
Next the Whales start laddering their sales of their all time high Bitcoin making billions of dollars / pounds sterling / euros.
These sales gradually create fear and panic amongst smaller investors (the Minnows) and more people start selling.
In addition, Asia still dominates in crypto-trading by volume, accounting for the vast majority of money flowing in and out.
Lunar New Year
The Lunar New Year is February 16, 2018. During the three week period running up to this event there is lots of money is flowing back to fiat to buy presents and plane/train tickets.
People spend a TON of money on travel and presents during Lunar New Year. This is their celebration equivalent to the festival of Christmas. This is also the largest mass migration of people on the planet, occurring over two weeks. Projections are for US$100 billion in spending.
All of which fuels the panic and fear amongst the Minnows.
By this time the Whales are close to cashed out.
The first Bitcoin Futures contract closed on January 17 at US$10,900. As of roughly a week before there were some 2,000 short position contracts for Bitcoin futures active on CBOE
So the Whales buy Bitcoin when it is relatively low.
Start selling it off at an all time high.
Drive the market with fear and panic downwards at a time when they know historically there’s been lots of natural conversion from Bitcoin to fiat.
Whilst at the same time nailing their short call on the Futures market.
Have faith in the USI software ability to ignore fear and panic. The software has no perception of human frailty.
You only need concern yourself with the temperature of the water when you want to get out.
Don’t try to swim against the Whales.