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At its core, Bitcoin (BTC) is a way to transfer value from one person to the next, easily, quickly, and inexpensively, thus, solving major pain points in the current system. This is similar to email as compared to the traditional mail system, and the innovations and changes that have transpired in response.
However, it appears as though BTC has become less of a transactional currency/value, and argued as more of a store of value for holders. This can be due to the complexity of sending small decimal point figures that equate to dollar values, and the need for a calculator to compute said equivalent values. Not only that, but BTC transfers have become more expensive over time, and have become slower, in comparison to alternative cryptocurrencies such as Litecoin (LTC) or Digibyte (DGB). This may change with Lighting Network developments by BTC. However, to many people, BTC seems to make sense as a digital bank of sorts.
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BTC is often referred to/seen as a store of value by the cryptocurrency community as of late. This seems like a sound idea. BTC is the number one cryptocurrency with regards to market cap, seems to have the most public and institutional interest, is the most trusted across the board, and has stood the test of time so far.
There is a large problem in the BTC store of value proposition however. Bitcoin is extensively volatile. For something to be a sound store of value, it must be able to hold its value consistently. BTC can be a great asset to trade. But if a person invests or stores their money/value in BTC on any given day, then they must be ok/prepared for that money to decrease or increase by even 80% in a somewhat short time period. This seems more like a gamble than a true store of value.
Enter Bitcoin Enhanced (BE) -
“Enhancing the value of Bitcoin by forecasting when its price is likely to fall” (Bitcoin Enhanced Whitepaper, p. 1).
Bitcoin Enhanced (BE) is a new cryptocurrency asset with the potential to be a much more effective digital store of value than Bitcoin itself.
Put simply, Bitcoin Enhanced tracks the price of BTC while BTC moves up. But when the BTC price moves down, Bitcoin Enhanced bets against the price of BTC, essentially driving the price of BE up while BTC moves down.
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This would make an excellent store of value, in that, it would use the BTC price against itself, to improve the price of BE. This could make for an excellent system, and relationship between BTC and BE. BTC would still remain volatile for trading purposes, but also contribute to the BE longer term store of value as well.
More specifically, BE does the aforementioned by using forecasts. This means that BE makes predictions about future drops in price by BTC. However, BTC may in fact not go down as predicted, as nothing is 100% certain. If the prediction by BE is wrong, then the BE price will go down in relation to BTC. A 60% success rate is expected for BE predictions, through use of its system (described in more detail in articles to come). This may sound like ineffective odds, although most experienced traders will tell you that you can make consistent money with less than a 60% success rate.
BE will have many of the same dynamics as BTC. It will also have 21,000,000 total coins, and be decentralized in nature, without an ICO, and run by the community.
Bitcoin Enhanced is for people who love the system/concepts of BTC and its potential to improve aspects of the traditional world. If a person likes BTC, then it would make sense that they would like BE as well. They go hand in hand together.
More articles and details to come in the near future.
Readers can find more info on BE at bitcoinenhanced.io
Important Notes:
I am part of the Bitcoin Enhanced team and am compensated by Bitcoin Enhanced on a consistent basis, in BE coins.
At the end of the day, readers need to make their own decisions about Bitcoin Enhanced. This article was written about my opinions and my interpretation of data, which can be subjective. In no way am I claiming that I know everything, and therefore, independent research is required by readers. But hopefully I have given a good amount of content to assist in entertaining the public. BE could go nowhere in price or even go down. But it could also do very well. Decide for yourself based on the data and your own personal research. Nothing said, written, etc. is a recommendation to buy or sell anything.
(**Everything written, said, tweeted, etc. is based on my personal opinion, my interpretation of the data/material, and is not financial or investment advice whatsoever. I do not claim to be an expert. Articles may be subject to edit/update at the discretion of the writer)