How To Earn Bitcoin

It is worth mentioning at the beginning that this is a custodial wallet. This means that as the holder of a Bitcoin wallet, you do not own the private keys to the addresses associated with your wallet. In turn, the Bitcoin wallet software securely manages the private keys on your behalf; simplifying the use of your Bitcoin wallet.

If you have a concern with custodial Bitcoin wallets, you should be just as concerned with non-custodial wallets and some cold-storage wallets because many of them execute software, and any software can contain hidden logic to secretly share your private key information with unauthorized individuals.

So when dealing with any crypto wallet, a level of trust must be established and in this regard, you will find that independent reviews of our wallets contain no complaints or negative sentiments.   See Trustpilot reviews of our Bitcoin wallets here and here.

Furthermore when using any hot wallet, understand that you do not have to permanently store your Bitcoin in these wallets. You can receive a payment to any address associated with your Bitcoin Wallet and immediately transfer your Bitcoin balance to another address that you have sole custody over, or that you hold the private keys to.

Per the terms of use, any user of the Bitcoin Wallet Software must be at least eighteen (18) years of age. Other than that, the Bitcoin Wallet Software requires nothing more than an email address; which is only used to send notifications or information pertaining to a wallet holder’s Bitcoin Wallet or in regards to updates about the Bitcoin Wallet Software itself.

Similar to the Bitcoin Core software and the software that supports Layer 2 solutions like the Lightning Network, this Bitcoin 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 Bitcoin 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.

Like other software and systems designed to facilitate Bitcoin transactions, this Bitcoin Wallet Software is all about transaction fees. For more information about its fees and how they are used, please reference this article.

But unlike Bitcoin miners that profit from block rewards and transaction fees, or participants of Lightning Nodes who profit from transaction fees, our Bitcoin Wallet Software uses its transaction fees to fulfill a core obligation — and that is to convert Credits into Bitcoin. Eighty percent (80%) of all transaction fees are sent to the Vault and the Bitcoin Wallet Software fairly and systematically distributes Bitcoin from the Vault to all Bitcoin wallets that have an outstanding balance of Available Credits. As a result, holders of these Bitcoin Wallets can effortlessly earn Bitcoin and increase their Bitcoin holdings over the course of time.

This is a great question that deserves everyone's full attention and understanding, and we will provide more detail and examples below. But forget what you've learned from traditional crypto projects and open your mind to a new realm of understanding. This is the first layer 2 solution designed on Bitcoin that allows users to earn Bitcoin with returns that are significantly higher than any ETF, hedge fund, or staking/lending protocol in existence. And it does so without locking up your Bitcoin for extended periods of time. So let's get into how transaction fees from this Bitcoin wallet are able to produce returns for its end users.

There is an optional 10% transaction fee for On-Chain Deposits and a 10.5% issuance of Credits, resulting in an increase of 0.5% of every On-Chain Deposit that incurs this optional fee. As a result, the Bitcoin Wallet Software is paying out 5% 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, the wallet's capacity to generate Bitcoin returns 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 Bitcoin 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, our Bitcoin Wallet Software will generate Bitcoin returns that are far beyond anything that has ever existed in traditional or cryptocurrency markets.

Transaction fees from On-Chain Deposits are just one source of income for the Vault. A second source is from Wallet Fees (sending Bitcoin from your wallet). This is a flat fee equivalent to 1 British Pound (GBP) and this fee applies to most Internal and External Transfers that are submitted from a Bitcoin Wallet. 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 experience when sending Bitcoin to other addresses within the Wallet Network.

Now let’s take a look at this chart 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 our Bitcoin Wallet’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 Bitcoin 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 £3,000 worth of Bitcoin being added to the Vault on a daily basis. But there’s more, so let’s continue.

A third source of income for the Vault would be from fulfilled Marketplace orders. The Marketplace is a feature within the Bitcoin Wallet that allows Bitcoin Wallet holders to buy/sell Credits from/to other Bitcoin Wallet 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 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 Bitcoin Wallet 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 purchase 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 Bitcoin 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 Bitcoin Wallet Software has been designed to be both sustainable and active in generating yield?

Since the initial launch of our wallets in March of 2024, many new features have been added to better support the ecosystem. The Wager Credits feature of the Bitcoin Wallet 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.

In addition to this, a number of automated features like the Automate Satoshi Stacker and the Stimulus Generator have been developed that allows users to put their Bitcoin earnings on auto-pilot.  And to achieve even greater Bitcoin returns, the Delayed Credits feature was implemented to support a monthly 5% return on Bitcoin or a 20% return in Credits (when available).

All of these features work together to provide an effective and sustainable way for Bitcoiners to progressively increase their Bitcoin holdings over time. With such innovation in place, you too can start earning Bitcoin safely and effortlessly.