Delayed Credits is a new feature that evolved from the investment in Bitnest whereby the DCS Bitcoin wallets assumed all risk of losses while offering returns in Bitcoin to participating wallet holders. Check out this video for proven payouts & returns of our Bitnest plays.
The opening statement deserves everyone's full understanding to better grasp the real potential of the wallets and the new Delayed Credits feature. So here are some key points from the statement that should be pointed out.
1) BitNest was (and currently is) an extremely high-risk play.
2) Our Bitcoin wallets are performing at levels that allowed them to mitigate 100% of the risk without degrading the performance or sustainability of the system.
3) Participants earned a minimum return of 5% on their Bitcoin per month, and this return was guaranteed either in Bitcoin or through the issuance of Credits (if BitNest failed to pay).
4) The wallets were able to take on the risk based on its management of resources derived from internally-driven revenue. This means that no new signups or capital injections were needed for the platform to seamlessly digest thousands of dollars in losses.
So because of our wallets, our users were able to participate in the venture with absolutely NO RISK OF LOSS, and that from a project (BitNest) that is extremely high-risk!
PLUS, our strategy came with a guaranteed return; meaning that every participant would walk away with more Bitcoin than what they put in, and the results are documented in the video referenced above.
While those of us that participated in the DCS/BitNest strategy were able to exit with more Bitcoin in our wallets, the BitNest campaign ultimately served to gauge the interest of our existing user base. And based on the level of interest observed, the decision was made to cancel further investments in BitNest (which progressively increased in risk) and fine-tune a concept that produces similar rewards in Bitcoin, but with no risk for the users and an extremely low risk for the system. And this is how the concept of the Delayed Credits feature was born.
But before delving in, let's do a quick comparison of the 4 points mentioned above (for BitNest) and compare them with the following points that apply with the Delayed Credits feature:
1) Our Bitcoin wallets are and have proven to be an extremely low risk way to grow your Bitcoin holdings.
2) Our wallets still perform at the same level, but do not have to incur a high risk since the feature continues to build on the ecosystem itself.
3) Participants will earn a minimum of 20% in Credits per month or a minimum of 5% in Bitcoin per month. This too is pretty much guaranteed.
4) This feature not only supports the monthly payouts and minimizes the risk of losses, but it also opens the door to the first external source of revenue for the ecosystem; which will ultimately increase the performance & returns for all wallet holders.
So what is "Delayed Credits" and how does it work?
This feature is yet another way to acquire Credits at discounts, similar to purchasing Credits in the marketplace or enabling automated processes such as the Stimulus Program or the Automated Satoshi Stacker. However this features offers Credits at discounts that are beyond what you will typically find in the marketplace or through the automated features. When this feature is available, the minimum discount in Credits that you'll enjoy is 20%, however, the Credits will not be issued until the designated redemption date (which is 30 days after the purchase of Delayed Credits). Hence the name Delayed Credits.
Furthermore in lieu of Credits being returned, this feature will prioritize the return of Bitcoin instead; with a minimum return of 5%. Delayed Credits also support smaller purchases as little as 1 British Pound (GBP), making it an affordable opportunity for all wallet holders to experience.
But there is one caveat that must be mentioned. The amount of Delayed Credits that you can purchase is limited to the amount of Bitcoin that you have paid to purchase Credits in the Marketplace over the past 30 days. If you have made no marketplace purchases within the past 30 days, your wallet will not be eligible to purchase Delayed Credits. If you spent 0.0001 BTC in marketplace purchases in the past 30 days, you will be able to purchase up to 0.0001 BTC in Delayed Credits.
But there is one caveat that must be mentioned. The amount of Delayed Credits that you can purchase is limited to 10 times the amount of Bitcoin that you have paid to purchase Credits in the Marketplace. If you have made no marketplace purchases, your wallet will not be eligible to purchase Delayed Credits. If you spent 0.0001 BTC in marketplace purchases, you will be able to purchase up to 0.001 BTC in Delayed Credits.
That's it in a nutshell, so let's now discuss the built-in automation of the Delayed Credits feature.
Delayed Credits Automation
Considering that marketplace purchases are required to buy Delayed Credits, an additional feature has been designed to automate the purchase of Delayed Credits each time a wallet purchases Credits from the marketplace. Unlike other automated features of the wallets that offer "set it and forget it" options, this automation is only triggered when Credits are manually purchased from the marketplace.
The amount of Delayed Credits purchased through this automation will be the same Bitcoin amount that was spent to purchase Credits in the marketplace. So if you purchase 0.0001 Credits for 0.00009 Bitcoin, the automated process will immediately purchase 0.00009 BTC in Delayed Credits; assuming the available Bitcoin balance on your wallet is sufficient. If your wallet doesn't have enough Bitcoin to support the full purchase of Delayed Credits, no automated purchase of Delayed Credits will occur.
To enable or disable this automated feature, log in to your wallet's settings and toggle the switch for "Auto-Buy Delayed Credits". If this feature is enabled, your wallet will always send an email notification when you make a purchase in the marketplace; just to remind you that other automated transactions are or may be occurring whenever you make a purchase from the marketplace. These notifications are sent to help avoid confusion and cannot be disabled. If you do not with to receive such notifications, you can filter the email or disable the "Auto-Buy Delayed Credits" feature altogether.
How do buyers of Delayed Credits benefit?
Since the system is designed to prioritize Bitcoin returns over the issuance of Credits, most participants will receive a return in Bitcoin when each 30-day redemption period is reached. In such cases, there's no need to wait for Credits to convert - it's Bitcoin in today and Bitcoin out with interest in 30 days. And should the system determine that Credits should be issued instead, your wallet will receive a larger amount of Credits than what is typically available for sale in the marketplace. Should you wish to convert those Credits to Bitcoin faster, there's always the option to sell them in the marketplace.
In the end, the Delayed Credits feature offers an even faster way to grow your Bitcoin holdings. Just consider... A minimum 5% return per month in Bitcoin is a 60% APY on your Bitcoin, and a minimum 20% return in Credits is a 240% increase! If you know of any other system where you can safely place your Bitcoin and make such returns, I'm all ears. I'd venture to say that outside of our wallets, such opportunities simply don't exist.
How does the ecosystem benefit?
When Delayed Credits are purchased, they are purchased directly from the platform and rather than transferring the Bitcoin received to the vault, the Bitcoin is used for active trading in the open market. Over the course of 30 days, the probability of generating profits is relatively high while the system itself covers any losses that may occur (thus eliminating any risk for end users). The returns from trading should support a minimum 105% return in Bitcoin for most if not all Delayed Credits purchases. And that's the easy part.
The benefit to the ecosystem comes when returns from each redemption date meet or exceed 20%. In such cases, wallets that purchased Delayed Credits will receive 105% in Bitcoin (ie. and additional 5% or 25% of the 20% profits) and the remaining 75% of the 20% in profits will go into the system; whereby 80% of such is fed into the Vault as an added source of revenue.
Returns exceeding 20% serve as capital for additional trading and reserves for future BTC payouts.
This feature also incentivizes increased engagement and activity in the marketplace; considering that marketplace purchases are required in order to purchase Delayed Credits. Now consider what this does:
1) It stimulates even more system-generated revenue from marketplace activity.
2) Increased marketplace activity enhances the marketplace experience for both buyers and sellers of Credits. Sellers listing competitive offers will likely see their Credits selling at a faster pace while buyers are able to simultaneously use two of the top performing features of the wallet to maximize their Bitcoin holdings.
3) The combined effect from both external revenue and increased income from the marketplace will ultimately stimulate even greater interest and engagement for more users.
How do other users benefit?
Regardless if a wallet holder purchases Delayed Credits or not, all wallet holders will benefit from new and increased revenue streams flowing into the system. Remember that the system was designed to adjust and maintain a stable level of performance, which it has reached through the revenue that has historically been generated internally. With the introduction of new revenue, the system will continue to adjust accordingly; resulting in faster Credit conversions and higher APYs for all wallets.
When can we expect to see results from Delayed Credits?
For direct participants, either Credits or Bitcoin will be issued 30 days after each purchase of Delayed Credits. Note that purchases can be made as often as desired with a minimum purchase amount equivalent to 1 British Pound (GBP).
For the ecosystem itself, the timing of the results depends on how much the feature is used and the returns generated from trading. But I'd expect to start seeing signs of increased performance about 40 days after the feature is released and made known.
SPOILER ALERT
Now that you've digested all of that, there's more about this feature that will further whet your appetite. But I'll keep that under wraps for the time being and allow you all to see what happens as the system continues to evolve.
Message from the Dev
I tried to write up this post in layman's terms so everyone can grasp a basic understanding of the new feature. But I know that quite a few of you guys are technical so if you have questions, drop them in a reply and if many questions start coming in, I'll connect with Coach and schedule a live AMA to make sure all questions are answered and everyone has a clear understanding of how things work.
But stay tuned, because even more mind-blowing upgrades will be following this one.
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