Finally!!! A Bitcoin Wallet that generates yield for its users and supports the Bitcoin blockchain. If you have not yet heard of such a wallet, you may want to take a minute to read and digest the contents of this article, because this is a game changer!
Welcome and thank you for checking out this medium article. It is a great pleasure for me to release the software for the first (and currently only) Yield-Generating Bitcoin Wallet (which I will reference as “YGBW”). This medium article is written to provide a brief overview and explanation of the software itself; including its features, capabilities, and underlying mechanics. So let’s get started with a few definitions and then jump into it.
Definitions
YGBW — Yield Generating Bitcoin Wallet
Wallet Software — the software that governs all transactions and activities supported by the YGBW, as accessed by and through licensed copies of verifiable websites
Wallet Network — A network of all wallets and Bitcoin addresses that have been created by the Wallet Software
Wallet Fee — A base fee that is charged for all transfers submitted from a YGBW (BTC equivalent of 1 GBP)
Network Fee — The transaction fee that is charged to submit a transaction on the blockchain (as determined by the current rates required by the Bitcoin blockchain to enter a transaction in a block)
On-Chain Transactions — Transactions that have been processed by and written to the Bitcoin blockchain
Off-Chain Transactions — Bitcoin transactions that occur outside of the Bitcoin blockchain
On-Chain Deposits — Bitcoin received by a YGBW address that has been written to the Bitcoin blockchain
Internal Transfers — Bitcoin transfers sent from one wallet within the Wallet Network to a Bitcoin address within the Wallet Network
External Transfers — Bitcoin transfers sent from a wallet within the Wallet Network to a Bitcoin address that is NOT within the Wallet Network
Credits — Having a 1:1 correlation with Bitcoin, Credits are system-generated obligations that the Wallet Software is designed to issue and convert into Bitcoin.
Available Credits — The amount of Credits that are eligible to be converted into Bitcoin at any given time for any particular YGBW.
Vault — An aggregated Bitcoin balance sourced from transaction fees assessed by the Wallet Software. The Vault is primarily used to convert Available Credits into Bitcoin.
This is a Custodial Wallet
For those of you that may be interested in this wallet, it is worth mentioning at the beginning that this is a custodial wallet. This means that you as the owner of a YGBW do not own the private keys to the addresses that are linked to your wallet. This is not a concern for some but may be an issue for others.
However it is also important to note that you never have to leave your Bitcoin in your YGBW. You can receive an On-Chain Deposit to any address associated with your YGBW and immediately transfer your Bitcoin balance to another address that you have sole custody over, or that you hold the private keys to. By receiving an On-Chain Deposit, the Wallet Software will immediately issue Credits to your wallet and begin the process of converting your Available Credits into Bitcoin. This presents an exceptional opportunity to earn Bitcoin freely and effortlessly, and do so without having your Bitcoin locked up in a contract or with an investment fund.
Requirements
Per the terms of use, any user of the Wallet Software must be at least eighteen (18) years of age. Other than that, the Wallet Software requires nothing more than an email address; which is only used to send notifications or information pertaining to a wallet holder’s YGBW or in regards to updates about the Wallet Software itself.
Similar to the Bitcoin Core software and the software that supports Layer 2 solutions like the Lightning Network, this Wallet Software does not require or collect personally identifiable information (with the exception of an email address that can be easily managed to ensure anonymity). As such, this Wallet Software supports Bitcoin’s existing design of being a pseudo-anonymous, peer-to-peer electronic transfer protocol that removes the need of financial institutions or third-party middlemen.
How does it work?
Like other software and activities that support the Bitcoin blockchain, this Wallet Software is all about transaction fees. For more information about its fees and how they are used, please check out the video below.
But unlike Miners that walk away with profits from block rewards and transaction fees, or participants of Lightning Nodes who profit from transaction fees, this Wallet Software uses its transaction fees to fulfill a core obligation — and that is to convert Credits into Bitcoin. The Wallet Software uses an algorithm that fairly and systematically distributes Bitcoin from the Vault to eligible wallets that have an outstanding balance of Available Credits. As a result, holders of these YGBWs can effortlessly earn Bitcoin and significantly increase their Bitcoin holdings over the course of time.
How are payouts from these YGBWs sustainable?
You may be saying, “Ok, I understand that the wallet pays its Credit obligations from transaction fees. But if it pays out a greater percentage of Bitcoin than it collects in fees, how can it be sustainable?”.
This is an excellent question that deserves everyone’s full attention and understanding. But before elaborating further, I will again direct your attention to the above video about transactions fees and how they are used.
1) Fees from On-Chain Deposits
As of July 3, 2024, there is a 10% transaction fee for On-Chain Deposits and a 13% issuance of Credits, resulting in a net profit of 3% for every On-Chain Deposit that enters the Wallet Network. So we understand that the Wallet Software is paying out 30% above and beyond what it receives from fees generated from On-Chain Deposits. Granted! But read on...
If transaction fees from On-Chain Deposits were the only source income for the Vault, this project would indeed be unsustainable. But this is not the Vault’s only source of income. In fact, the transaction fees from On-Chain Deposits were designed to serve only as a temporary buffer of funding for the Vault. And as the project grows in adoption, transaction fees from On-Chain Deposits will then serve to increase the rate at which the Wallet Software converts Credits into Bitcoin.
But what if this wallet is never adopted? Well just like any other project, hedge fund, restaurant, bank, or business — the concept will ultimately fail if users choose not to use it. But if this system is used, the Wallet Software will generate Bitcoin returns that are far beyond anything that has ever existed in traditional or cryptocurrency markets. Furthermore, the Wallet Software is equipped with an auto-evaluation mechanism that increases its payout percentage upon the achievement of system-generated goals. But more on this later. For now, let’s get back to how this YGBW is sustainable.
2) Wallet Fees
So transaction fees from On-Chain Deposits are just one source of income for the Vault. A second source is from Wallet Fees. This is a flat fee equivalent to 1 British Pound (GBP) and this fee applies to all Internal and External Transfers that are submitted from a YGBW. This fee is minimum so that wallet holders can send Internal Transfers at a substantially low cost. However in regards to the Vault, Wallet Fees can add up quickly as more users realize the speed and savings they’ll receive when sending Bitcoin to other addresses within the Wallet Network.
Now let’s take a look at this chart (https://ycharts.com/indicators/bitcoin_transactions_per_day) and consider the number of Bitcoin transactions that are reported on the blockchain per day. We’ll use a low-balled average of 300,000 transactions per day. That’s a lot of money going into the pockets of miners, especially when considering the Network Fees that are required to submit a single On-Chain Transaction to the blockchain.
Now ask yourself… Wouldn’t it be much better to send a Bitcoin transaction via your YGBW’s Wallet Network? Of course it would! These features are now in place and readily available at your fingertips! And as more users migrate to sending Off-Chain Transactions through the Wallet Network, consider how much Bitcoin will be transferred to the Vault; and that without the Wallet Software issuing any new Credit obligations. If the Wallet Network transacted just 1% of Bitcoin’s average volume of 300K transactions per day, that would equate to about 2400 Pounds (GBP) worth of Bitcoin being added to the Vault on a daily basis. But there’s more, so let’s continue.
3) Marketplace Fees
A third source of income for the Vault would be from fulfilled Marketplace orders. The Marketplace is a feature within the Wallet Software that allows YGBW holders to buy/sell Credits from/to other YGBW holders. This provides an avenue for some wallet holders to sell their Credits at a discount in exchange for instant Bitcoin. Doing this allows the wallet holder to acquire Bitcoin at a faster pace than the Credit-to-Bitcoin conversions performed by the Vault. So let’s call these guys “Degens” and understand that it’s perfectly acceptable for them to sell their Credits at a discount in the Marketplace for a quick Bitcoin return.
On the flip side, consider wallet holders that prefer to HODL, increase their Bitcoin positions, and seek to acquire more Bitcoin at a discounted price. We’ll call these guys “HODLers” and it’s just as acceptable for them to acquire more Credits, understanding that Credits have a 1:1 correlation with Bitcoin. So when those Credits are converted by the Vault, the recipient is rewarded with the full value of that Bitcoin; yet they were able to acquire this position through a discounted purchase of Credits.
Then you may have wallet holders that enjoy playing both sides of the coin, purchasing Credits at a discount and then selling those Credits at a lower discount. For the sake of clarity, let’s say that I purchase some Credits at a discount of 50% then turn around and sell those credits (or a portion thereof) at a discount of 20%. This allows me to immediately increase my Bitcoin position at by 20% of the amount while allowing the Vault to convert the remaining 30% at the full BTC value over the course of time. Let’s call the guys with this mindset “Traders”.
So the Marketplace provides the perfect environment for Degens, HODLers, and Traders to exchange their Bitcoin and Credit positions. Furthermore upon the fulfillment of each order, the Sellers of Credits will receive the exact amount of Bitcoin that they specified in their sell order and the Buyers will receive the exact amount of Credits that are displayed in the Marketplace. And now lets get into the fees.
Marketplace fees exist to the tune of 10% of each marketplace transaction, but these fees are designed to be completely hidden from view. To explain further… When a Seller submits an order to sell Credits, they specify how many Credits they are willing to sell and the amount of Bitcoin that they are willing to accept for those Credits.
For example, I may want to sell 0.0005 Credits for 0.0004 Bitcoin, so I’d enter the numbers accordingly. The Wallet Software would then display the percentage of the discount that I’d be selling my Credits for and prompt me to confirm the order. In this case, the discount would be 20% (considering that I’m selling at a discount of 0.0001 BTC, which is 20% of the 0.0005 Credit amount that I’m posting for sale). At this point, I (the seller) will be completely satisfied whenever my order is purchased.
Immediately upon submission of a sell order, the order is displayed in the Marketplace for potential buyers to purchase at a discount. However when the order described above is displayed in the Marketplace, it is displayed at a 10% discount (not a 20% discount). This is how the Marketplace fee is incorporated into the transaction.
So if a buyer comes along and wants to purchased 0.0005 Credits at a 10% discount (which would be 0.00045 BTC), they can do so and walk away completely satisfied that they are acquiring Bitcoin equivalent at a 10% discount. Such a discount on Bitcoin is unheard of in this day and age, yet such offers can be readily available within the Marketplace.
But consider what occurs upon the execution of this order. The seller is happy, the buyer is content, and the Wallet Software just received a transaction fee of 0.00005 BTC, 80% of which going straight to the Vault. And once again, this is income for the Vault without the Vault creating any new Credit obligations. This results in a complete WIN-WIN for each participant and for the participants in the protocol as well.
At this point, are you starting to grasp the power and ingenuity of these transaction fees and how this Wallet Software has been designed to be both sustainable and active in generating yield?
More mechanics for long-term sustainability
Other features are being developed to better support the system beyond just the acquisition of fees. With the 2024 May 17th release of the Wager Credits feature of the Bitcoin Wallet, a gamification aspect for these wallets was introduced that allows users to wager a small sum of Credits in order to win additional Credits (essentially realizing a net 3x on their wager). And behind the scenes, this feature works to further decrease the Credit obligations maintained by the platform. When used in conjunction with the marketplace, users are able engage in a more entertaining experience while increasing their Bitcoin holdings and supporting the system. This too leads to great sustainability for the platform itself.
BUT WAIT ! ! ! THERE’S MORE!
I’ve always wanted to use those statements after seeing them used in so many lame infomercials. But in all honesty, there really is more. However this is the type of information that I will disclose at a later time, along with more details about the Wallet Software’s auto-evaluation mechanism.
This is just the beginning and the information presented in this article only scratches the surface. There is much more to share. However the information presented herein should be sufficient to peak your interest and prompt you to discover for yourself just how effective these YGBWs can perform in regards to earning Bitcoin and increasing your Bitcoin holdings.
If you have questions, please feel free to subscribe to my Youtube channel and submit your questions in any of the related videos. This provides an open forum to engage in discussions with me and with other knowledgeable users of the platform.
Final words for now
Ready to try out this yield-generating Bitcoin Wallet for yourself? Click Here to get your wallet and discover first hand how efficient this Wallet Software can be in regards to increasing your Bitcoin holdings.
Please note that there will be numerous copies of this Wallet Software (which will be issued as white label sites to interested licensees), and the link provided above to direct you to a verified site running a copy of the authentic Wallet Software.
And at it point, it is worth mentioning that scammers may very well attempt to replicate these sites and try to pass them off as being authentic. So to help ensure that you don’t fall for any scams, always go to this page and enter the url of any website that presents itself as running an authentic version of this Wallet Software. The page will confirm if it is a licensed copy or not. And just in case someone attempts to copy this Medium article and direct you to a modified verification page similar to the link provided above, always check for the Authenticate This Site link at the bottom of any site that claims to be a yield-generating Bitcoin wallet. These links will help ensure that you are accessing a verified site.
White Label Inquiries
While the content of this article is primarily targeted toward end users, some of you may be interested in running a white label version of this Wallet Software. The current base price is the equivalent of 50K British Pounds (payable in Bitcoin) and the base price increases by 10K GBP with the issuance of each new license. Interested parties can send inquires to sales@digitalcryptosolutions.com.