HOUSTON, Feb. 06, 2019 (GLOBE NEWSWIRE) -- Bitcoin Oil announces further details of its “Optimally Improved Ledger” (OIL) business plan to create an all-new Bitcoin blockchain technology, and to create an asset-enhanced, stability-enhanced Bitcoin cryptocurrency under the name Bitcoin Oil, or “OIL” as an abbreviation. Besides its intentions to “go green”, by utilizing PoS consensus and discontinuing the energy consuming PoW protocol, Bitcoin Oil’s team considers price stability and drastically reduced volatility as the pathway to Bitcoin mass adoption.
It has already been over a decade since Satoshi Nakamoto published Bitcoin’s white paper in November 2009, presenting the world with a revolutionizing cryptocurrency. However, ten years on, Nakamoto’s vision is yet to be fully realized; as true decentralization requires real mass adoption and Bitcoin is lagging dramatically behind. According to a Cambridge University study, currently there are only between 2.9 to 5.8 million active Bitcoin users in the world, which represents only 0.056 percent of the current world population of over 7.7 billion people. Almost in the same period Apple revolutionized the entire telecom industry by presenting its very first iPhone 1 in 2007 (total sales volume came to 6,124,000 units) and striving to surpass themselves year after year up to the forthcoming new iPhone 11 in 2019 (with 6.1 billion smartphone users globally expected by 2020, overtaking basic fixed phone subscriptions, representing remarkable 78 percent of the world population).
“Next year, there will be over 6 billion smartphone users in the world but still only one thousandth of that represents the small number of active Bitcoin users. While other technologies have disrupted entire industries and accomplished true mass adoption in the last ten years, Bitcoin in 2019 is just at the level where Apple was 12 years ago- with its iPhone 1 in 2007 having roughly 6 million active users. This lag is for a variety of reasons on Bitcoin’s behalf including a whole bunch of structural deficiencies and technological insufficiencies,” says Hannah Paddock, Bitcoin Oil's Chief Marketing Officer. “Without a doubt, the introduction of Bitcoin in 2008 has been revolutionary. If our engineers and developers can find a way to deal with – amongst other issues – the intense volatility and lack of stability, then Bitcoin’s benefits will be able to be enjoyed by all, and true mass adoption could finally happen,” Hannah Paddock continued.
Daily price swings of 10 to 20 percent or more are not uncommon among Bitcoin and other major cryptocurrencies, making them exceptionally volatile in comparison to fiat currencies or government bonds; in comparison, the British Pound lost only 4 percent of its value against the Dollar on the infamous Black Wednesday, one of its worst performing days ever. This inherent volatility means users run the huge risk of the value of their Bitcoins being eroded, which has turned out to be one of the major obstacles for Bitcoin mass adoption in the last decade. We believe a provable way to temper this instability would go a long way for the masses to view Bitcoin as a legitimate currency and pave the way for its true mass adoption, which is one of the main objectives of Bitcoin Oil’s strategy.
Economist and philosopher Adam Smith said in the “Wealth of Nations” that “money can serve no purpose other than purchasing goods." Currencies are instrumental goods, and in order to be effective, currencies must be mediums of exchange and stores of value - both at the same time. So, the value of a currency is in its ability to do those things efficiently and effectively: facilitate transactions and act as stores of value. Economist and Nobel Prize winner Paul Krugman wrote, “to be successful, money must be both a medium of exchange and a reasonably stable store of value. And it remains completely unclear why Bitcoin should be a stable store of value.” Talking with Bitcoin supporters, Krugman complained, “when I try to get them to explain to me why Bitcoin is a reliable store of value, they always come back with explanations about how it’s a terrific medium of exchange.” Krugman was saying that a currency’s ability to store value and its ability to mediate exchange are different matters entirely.
“If Bitcoin is going to be a store of value, the value of it must be relatively stable, and for Bitcoin to be that, it has to be ubiquitous, but a pretty poor penetration rate of only 0.056 percent is far from anywhere near that,” Hannah Paddock pointed out. “The needed ubiquity of Bitcoin and the increase of value that comes with it is the network effect we will generate by creating our real-world based monetary incentives for Bitcoin holders, taking it to a penetration rate of over 10 percent of the world population. So, the more widely Bitcoin will be used, the more flexibility it will have to facilitate transactions, which stabilizes its value; because simply, the more people accept it as a valid form of payment, the more people will use it as a form of payment. And as Bitcoin’s ubiquity rises through our real-world based monetary incentives, so too does its value,” Hannah Paddock explained. “Ultimately we will turn Bitcoin traders and pure speculators into long-term Bitcoin Oil ‘hodlers’ by providing the only feasible, effective and efficient mechanism, as a constructive corrective, with an important restraining effect and the ability to finally contain outrageous volatility”, Hannah Paddock determined.
Hence, one of the biggest weaknesses of Bitcoin represents one of the most important improvements Bitcoin Oil aims to accomplish. Bitcoin Oil, as an asset-enhanced, stability-enhanced cryptocurrency, aims to bridge the gap between its cryptocurrency and real-world values like the New Economy in the nineties revolutionized the entire bricks and mortar industry or like the Internet of Things (IoT) is building bridges between classic devices and cutting-edge technologies in the new millennium. In this context, Bitcoin Oil intends to use a noteworthy portion of the expected proceeds from its Initial Coin Offering (ICO) in 2019 to acquire established oil and gas properties in the United States and elsewhere. Bitcoin Oil is currently targeting several such potential property acquisitions (subject to, but not limited to the funding from ICO proceeds) representing significant amounts of BOE (Barrels of Oil Equivalent) and anticipates growth to nine- and ten-digit amounts of BOE by year end 2019 and 2020 and beyond.
“We expect the value of Bitcoin Oil, as an asset-enhanced, stability-enhanced cryptocurrency, and the stability of the Bitcoin Oil market price will be significantly sustained and enhanced by the underlying oil and gas assets held and operated for the benefit of all Bitcoin Oil holders. Subsequently we estimate each Bitcoin Oil holder will benefit from a considerable pro-rata Dollar amount of equivalent oil and gas reserves already by the end of 2019 and the assumption that the Company will initially have approximately 5 billion Bitcoin Oil issued – as outlined in our forthcoming white paper and company presentation deck,” Hannah Paddock continued.
We plan to independently assess our oil and gas assets and reserves (assuming completion of ICO as proposed in our white paper) by engaging leading, internationally recognized oil and gas reserves analyst firms and auditors as part of Bitcoin Oil’s ongoing reserves evaluation exercises. Bitcoin Oil is in the process of retaining a large and internationally-recognized auditing firm that holds a lead oil and gas practice to audit Bitcoin Oil’s future assets, production, income and its commodity derivatives, that are held for the benefit of Bitcoin Oil holders and will announce publicly these results.
“While Bitcoin currently pays 12.5 new free Bitcoins mainly to huge mining farms for each newly mined block, Bitcoin Oil intends to discontinue this flawed PoW protocol and implement PoS which will enable Bitcoin Oil to eliminate such mining-based dilution and drastically reduce inflation as future validator incentives will be significantly less than current mining rewards (Total Incentives to Stake = Validator Rewards + Network Fees – Costs to Run a Validator),” Hannah Paddock explained. “This change in consensus protocol releases extremely valuable reward capacities and enables Bitcoin Oil to optimize the allocation of reward resources by shifting incentives from huge mining monopolists to each Bitcoin Oil holder on an equal and fair pro-rata basis. Incentives will be valid in perpetuity and without term limits or other timely restrictions,” Hannah Paddock continued to explain Bitcoin Oil’s long-term hold incentives in connection with the oil and gas assets and operations.
So, Bitcoin Oil intends to reward all Bitcoin Oil holders with bonuses and incentives as part of its newly created “Hodlers Rewards” (HR) which will incentivize Bitcoin Oil holders on a pro rata basis reflecting the amount of net income on an applicable record date. The amount of HR distributions, if any, will be determined by taking into account, among other factors, the net earnings from holding, operating and disposing the oil and gas assets held on behalf of all Bitcoin Oil holders. Further details of Bitcoin Oil’s proprietary “Hodlers Rewards” will be published in Bitcoin Oil’s forthcoming white paper in Q1 2019 and can be reviewed on the HR loyalty website at www.hodlers-rewards.com which will also provide Bitcoin Oil holders with weekly updates about the actual operations and many more insights into the world of Bitcoin Oil.
As additional precautionary measures to enhance stability of its oil and gas assets (assuming completion of ICO as proposed in our white paper), Bitcoin Oil prepares to have commodity derivatives in place in 2019 and 2020 for approximately 80% of the expected oil production and 70% of expected natural gas production (NGLs are hedged by such financial products). Also, Bitcoin Oil plans to have Midland-NYMEX WTI basis hedges in place in 2019 and 2020 for approximately 70% of expected Midland oil production in order to protect its assets and its production against unexpected oil and gas price volatilities, adding once more price stability and asset protection for the Bitcoin Oil holders. For the following years, management intends to have similar measures in place and will announce details periodically.
Furthermore, in the United States, Bitcoin Oil has retained Gutnicki LLP (www.gutnicki.com), as its special United States counsel. Gutnicki is a boutique law firm with exceptionally credentialed attorneys dedicated to delivering business-oriented results to clients around the world. The Gutnicki team has extensive know-how of the blockchain technology and global ICOs, as well as US and foreign regulatory requirements. Bitcoin Oil’s legal team involves various lawyers and jurists with vast experiences representing issuers, providing sound advice in all of the jurisdictions involved in Bitcoin Oil’s offering, compliance with securities laws, disclosures, AML procedures and KYC protocols, the filing requirements of regulators and dealings with oversight bodies.
Moreover, in Europe Bitcoin Oil’s parent company will be represented by one of the largest and most reputable international law firms in Switzerland and one of the leading blockchain and cryptocurrency law firms in Europe and a founding member of Switzerland’s Crypto Valley (www.cryptovalley.swiss) which Bitcoin Oil is a member of. The Company’s European legal team comprises various corporate & finance experts who specialize in complex cross-border ICO structures and international finance transactions, including financings, corporate dividends, private equity, capital market as well as complex M&A transactions.
“Make no mistake about it, Bitcoin Oil won’t bring a knife to a gunfight. Our entire team of international law firms, global auditors, worldwide natural resources analysts, bitcoin developers as well as our experienced Board of Directors and our respectable Advisory Board is highly equipped and very well prepared for the challenging implementation process of our entire SSPSS strategy, which will be a true revolution for Bitcoin”, Hannah Paddock concluded. “By bringing long overdue innovations like Stability, Sustainability, Privacy, Smart Sidechains, and Scalability, or ‘SSPSS’, to all Bitcoin holders, we will fulfill many promises which were already incorporated in Bitcoins original Satoshi Nakamoto white paper in 2008. And as we say: ‘Bitcoin is dead - long live Bitcoin’, so OIL is not just another fork and not at all a competitor of Bitcoin: we have positioned ourselves as the final Bitcoin revolution and nothing less than the ultimate solution for most of Bitcoins gradually accumulated problems and flaws,” Hannah Paddock finished.
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 info@bitcoinoil.com or call us at +1-8777-BITCOINOIL.
Disclaimer
This press release shall not constitute an offer to sell or the solicitation of an offer to purchase any coin or right described herein, nor shall there be any sale of these coins 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 Bitcoin Oil to record holders of the Bitcoins then existing on the Bitcoin 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 Bitcoin Oil to the then holders of the Bitcoins as part of the hard fork and there can be no assurance whether we would be able to make such delivery or distribution to any such holder in connection with the hard fork.
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