Introduction to Cryptocurrency
Cryptocurrency is designed to remove intermediaries through a “decentralised ledger” and “blockchain technology”, thus create true peer-to-peer transactions. Satoshi Nakamoto released the Bitcoin whitepaper in a way to introduce people to the concept of removing intermediaries using a vehicle we all use in everyday life, money.
At the moment our money is controlled by governments, banks and other institutions, for the “safety and security” they provide, they take their cut on the way through with fees and taxes. The way that we currently account for who owns what are with “centralised ledgers”, that is, the banks keeps track of the movement of the numbers and we must take their word that the ledger is correct. There are many issues with this system, I’ll let you look into the ideas of “fractional banking” to learn more about it. The crux of the issues is someone else is controlling your assets and they take hefty fees to do so.
Bitcoin unlike banks, has an open ledger, to make it easier to understand, imagine a giant excel spreadsheet, on this spreadsheet (without names, just letters and numbers) every every single transaction since the inception of the asset is tracked. Because everyone has a copy of this excel spreadsheet we all agree that the transactions have taken place and we move forward. That is the basic premise of what Bitcoin and furthermore “Cryptocurrency” has done. We all have a copy of the ledger, we all agree the transactions have taken place and we move forward with the assets where they now are. Obviously it’s a bit nerdier how we get there, however that’s the basics to paint a picture in your head.
Next up, Ethereum. The term “Cryptocurrency” probably isn’t the best one as it makes people think all 1000+ are just peer-to-peer cash like Bitcoin, but they aren’t. I prefer the term “Crypto Assets” as it gets people’s mind thinking the right way. Ethereum was created to be a public blockchain that would allow other developers to create “dApps” or “decentralised apps”. Just like Bitcoin, the heart of the idea is to remove the intermediaries but this time they are not banks and governments but companies that take their cut for the cost of transacting with them.
I have to reiterate that its all a bit nerdier and difficult than I explain, just hoping to make it slightly easier to get your head around. Imagine Ethereum is the Apple App Store or Google Play. Inside the latter we have Uber, for this explanation I’ll assume you know what Uber is. Inside Ethereum we have Uber dApp 2.0. Both of them function in exactly the same way, you need a ride, you put in the details, a driver picks you up and takes you from A to B. The only difference is one has an intermediary and one doesn’t.
See Uber, they will tell you they’re a “peer-to-peer ride sharing app” but that isn’t quite right. Uber take ~25% from drivers in order to pay for their costs of running the giant ledger and business that is Uber. Uber dApp 2.0 doesn’t have these costs and instead through “blockchain” and the “decentralised ledger” concept takes a fraction of the ride cost ~0.01% to pay to a miner (people that process the transactions using their computers get a reward for doing so, this is called mining). So without the centralisation and control, we can create a network using our own computing power in order to update the ledger, all agree the assets are where they should be and move forward.
Now with the Uber example in your head, start imagining all the industries, particularly online (but face to face too) that can be disrupted by such technology. Then let me welcome you to Betrium.co. Those of you who know me, know that I gamble. A lot of what I do involves turnover at a betting exchange. I choose to bet there for a number of reasons, mainly because I won’t ever be declined trying to bet there. For those that don’t know, a betting exchange is a back and a lay between two people, no bookmaker involved. “That sounds like peer-to-peer” I hear you say, it is, except for the fact that on the way through the exchange takes a percentage cut in the way of a commission. Those commissions vary from exchange to exchange and user to user.
Betrium is aiming to be a clone of Betfair (the largest betting exchange) but in a “decentralised” way. There will be no premium charge and extremely low commissions, true peer-to-peer. There have been a few Bitcoin betting exchanges already, however most have missed the mark, the token which can nail this market first will flourish, excessively.
In 2014 Betfair generated £393.6 Million in revenue a decentralised betting exchange that can capture market share will lower revenue taken out of the gambling coffers greatly.
In the past 12 months I have turned over $1.3 Million AUD on various gambling exchanges, as a “one man band” that’s fair going. I use a bunch of technologies that plug into the API of those betting exchanges and would be surprised if I wasn’t in the top 5% of users in terms of revenue created, turnover and understanding of the platform. With that knowledge I have been looking for the “horse in the race” that can win the decentralised betting exchange race. I’m not sure it will be Betrium.co, but it is the best one I have seen to date.
They aren’t trying to reinvent the wheel at Betrium like some others have, they are simply looking to make a decentralised version of Betfair. They are exploring relationships with outside software creators that currently plug into Betfair and other current exchanges. They are a very approachable team with some experience from the gambling world on board.
The power of creating a decentralised gambling exchange network comes from users in the end and investors at the start. The opportunity for us is to be either and or both. These platforms have an ICO (initial coin offering) it’s like an IPO (initial price offering) but you get coins instead of stock. Betrium.co is coming up, they are in pre-sale at the moment and have raised $150,000 USD which has exceeded their expectations (there is a definite hunger for a platform in this space). During the ICO you will get 1200 BTRM (Betrium) per ETH (Ethereum which as point of writing is $450 AUD) so roughly $0.37 AUD per token. You can trade these tokens on an exchange (like trading on the sharemarket) or you can hold them and use them to gamble with on the Betrium betting exchange when it launches in late 2018.
I was motivated to write this for a couple of reasons, firstly I have a relationship developing with the team at Betrium, I have been in constant contact with the CEO – Maksim Surorov, he sees a mutual benefit in the relationship and has offered me a bonus of 8% for any investments that come through me. That happened organically though as I want to see someone succeed in this space. It is something that affects me directly and an area that this technology can be very disruptive.
I will be looking to work with Maksim and Betrium moving forward both with product development and funding, if you are interested to invest and have questions for me or Maksim, happy to get those answered.
If you want to invest please use this link https://goo.gl/NWreSy as it helps me and in turn I will be working to make your investment flourish as the platform progresses.