What is the difference between onecoin and other cryptocurrencies, especially Bitcoin? And why is Onecoin receiving so many criticisms from bitcoiners, anti-mlm bloggers?
Gor Krnic is one of the world’s foremost experts in cryptocurrencies, and has written interesting articles full of information and valuable details that everyone should read to better understand the OneCoin project.
Due to too much wrong information that is generally produced by people who do not understand and does not know what they are talking about I have decided to write this article as a guide for those who are not able to see the real aspect of deception about decentralization, centralization, Bitcoin and OneCoin. Although now I’m tired of people constantly comparing them.
Let’s start with a fundamental concept that we all know and that still has a lot of room for development:
As you all probably know, Bitcoin was founded as an alternative way of payment to banks and remittance agencies that are expensive and slow. It was assumed that Bitcoin was an electronic sending of P2P money between two people without the need to resort to intermediaries (banks, Western Union, etc.). All this was possible thanks to the Blockchain technology on which Bitcoin is based and which also finds a way out in many other activities. Everything worked very well at the beginning, when each user was a validation node, when they were all complete mining nodes and everything was nice and decentralized. However, as we know, around 2% of people own around 90% of wealth, and if all this were distributed among all people, in a short time, all this wealth would be concentrated in this small number of people.
I put Bitcoin as an example, because today 2.5% of people own 96% of Bitcoins, the nodes are centrally concentrated and the centralized power centers have provided enough power to earn commissions, and the miners are even more concentrated in the ASIC (specific integrated circuit of the application). In addition, when Bitcoin was set up by the exchange establishments, the “whales” and little by little the majority of Bitcoin, which people had decentralized for years, congregated in various places, and now 2.5% of the addresses have the 96 % Bitcoin Which is crazy because you do not know who these people are or what their intentions are.
Here you can read about a recent investigation in Bitcoin’s Blockchain addresses and see that few addresses have the majority of BTC.
You can see how Bitcoin stock exchanges and commercial bots are used to manipulate prices:
You can always block the entire market by selling a large amount of Bitcoin. They can reduce the price of Bitcoin today when they want to sell a large number of currencies, which reduces the price and frightens the inexperienced investors who hear on the news that they will reach $ 40,000 or a million to enter unknown waters in the hope of win. They start selling the same out of fear, so the price goes down even more, then all this activates the limit tasks that people with experience prevent in case the price falls below your investment to not lose everything. And this lowers the price, and after that, those “whales” that started all this just collect everything at a lower price. The price rises quickly, staying for a couple of days, weeks or even months, because the memory here is very short, and then the circle is repeated. The truth is that only “whales” know when or until when the price will go up. So, what we can see now in Bitcoin looks like a Ponzi scheme, because people see it as a promise, invest in the new investor and raise the price to pay the old investor who won while the new one is losing. Even the encrypted market is based on this, that is, it is a commodity for commerce, not a currency. And especially Bitcoin that now trades futures on CBOE and CME exchanges. Only now will the waves begin, and the smaller investors are slowly moving towards the altcoins. I’m dealing with operations, and the money in the game is in the market, and with 2 cryptocurrencies and four-digit investment, I developed a portfolio of, for now, 17 cryptocurrencies and wholesalers in the six-digit value (in euros, per course), because I know where it’s worth investing. But in the end everything is a bet, although I am taking advantage of the old cryptocurrencies to invest in a new potential and measure the risk. I wonder: where is the currency and that point that Bitcoin wrote in his technical report? He left, he left a long time ago, cryptocurrencies do not have the usefulness for which they were created, they are only exchanging goods. The Bitcoin transaction lasts longer than the bank and the commission is higher. Maybe some decentralized ones can also be used, but it will be difficult, because they all make the same mistake: they take the money in the ICO, they let the tokens go to the open market, and there are only “crocodiles”, and “whales” are going to take everything and move sales frauds. And the market is small, the number of tokens is limited and there is great deflation and it will never be feasible for sellers to receive it as a currency, because it is an unstable price so that most currencies and tokens are more like shares of a company than the currency, so probably the entire currency market is regulated in a similar way to the stock market. Some projects try to link the cards through a payment gateway, but that’s not it. What is the cryptographic point if in the end instead of a way of payment we are converting it into a fiat currency. But that’s something, we have to understand that this is only possible in the liquidity context of the stock market that gave us this card. Someone will say “value storage”, but how can we be sure that the value will not decrease when you see the sales fraud and when it is known that it is a single balloon and that it will go away with the wind? So, the solution for cryptocurrencies is that there is a transparent central body that is protected against speculators and bad intentions, that does not allow the use for the illegal purposes of financing terrorism, tax evasion and the like, and that can control the network in order not to slow down and create a jam.Whoever thinks that Bitcoin is decentralized does not know what he is talking about or are deliberately misleading peopoe. If all users install a verification node, then that would be the case. If the majority installed complete mining nodes, then it would have been the same during the negotiation period of the first years, and I even participated in that in 2010 and after 2013 in litecoin.So today there are only about 10,000 validation nodes, mining is reduced to pools, of which there are around 20 in the whole world. But 80% of the Bitcoin network has only 6 pools in China, so 6 people are 80% miners of new Bitcoins and control the validation of 80% of the network. It is not a decentralization or an environment without trust for a third party, the miners, we still have to believe them, but we do not have any reason for it, because we do not know what kind of manipulations there are. We have to trust the verification nodes that have also focused on strong centers that charge commission, we have to trust the developers to make their consensus sincere. We have to believe that there will be no other network that attacks Bitcoin and imposes a double expense that will be stronger than this “sincere”, and in the end we must trust that none of the people who have millions of Bitcoins will decide that this is enough, will throw away their million and will draw billions of cash, which will lower the price of Bitcoins to 0-1000. Too much trust in strangers and so much acceptability requires a solution in an innovative concept. Now I will try to explain what is offered by OneCoin as a potential solution, why it is different and why it is attacked by Bitcoin lovers and anonymous anti-mlm people. First you need to understand one thing. The partners, OneCoin and OneLife, are two different organizations. OneLife is an MLM network that sells the financial products of Oneacademy.eu. We can debate whether the product is good or bad or criticize it, but the fact is that there are many people, among whom I find myself, who give good courses learned to use that knowledge in the Financial Trading Board and measuring risks to make money. That’s what I used to use in stock exchanges, although I was not an economist, but an IT expert, and I successfully combined my IT knowledge and financial knowledge acquired in Oneacademy to identify good projects and start daily trading with which I won in a couple of months the money that others earn in 10 years. So, this educational product that OneLife sells has its value and is primarily an investment in its own education. In addition to education, this package brings you a number of tokens with which you can get the cryptocurrency that is still ONE. Therefore, OneCoin has so far exclusively provided access through the tokens of the Onelife network to OneCoins. After January 2018, OneCoin will also sell the OFC (offer future certificate) tokens through Silo Capital Group, which can be converted to the ONE crypto currency after 08.10.2018 and then start trading with it. Until now, it is more a coincidence, given the proximity of the project, is spent on the DealShaker platform that is in a ridiculously early beta phase.
So, what is the OneCoin company? It is a registered company in Dubai, where Rothschild does not control the central bank, but experts and founders of Bulgaria, and there is its building with offices where I personally went to see and meet these people, because it is a company that has nothing to do with MLM, but is developing its own Blockchain and platforms where we will use ONE and connect with vendors in the future. It is legitimate. OneCoin is one of my positions, I’m not a networker but I’m helping friends who are. This company was founded by Dr. Ruja Ignatova, who has a PhD in Oxford and a master’s degree in Konstanz (CH). She worked for many banks, but mainly for SBER; she worked as an associate for McKinsey and many others. She had a downtime in her career, of course, that stood out in the tabloid press to degrade Dr. Ruja. OneCoin was created at the end of 2014, when only Bitcoin and Litecoin existed, and Ethereum was preparing for ICO, and then it was not even known what ICO was. They did not start well, in my opinion, because they announced themselves as Bitcoin killers. Fortunately, they have learned this error and stopped with that.
The objective of OneCoin is not, therefore, to manufacture products for trade, but to create a currency for sellers / traders that has a stable value and that is usable but also accepted by governments as money and not as a commercial asset. What does it take to succeed? It is necessary to have a central company that takes charge of the network and the security of the user and creates a simple platform to use the currency. Bitcoin’s are criticizing the centralized systems because supposedly the purpose of the Blockchain and its point “without trust” is lost, but do not assume that our payments to ONE are validated by blockchain, not by the company. This company is here just as a “cop” to protect good people from bad and to ensure that the network is not distributed as Bitcoin and that it earns commissions from transactions that are really less than bank. If someone steals your Bitcoins, there is no one to help you, you have lost everything. In OneCoin, there is no problem because they have control over everything, which is good for people, it’s not bad. Paranoid people will want to use Bitcoin. No problem. But when we talk about the massive use of the market, 99% of people do not have IT training and simply do not know how to handle the configuration and use of Bitcoin, cold storage, private keys, etc.
In addition, the centralization will result in a stock exchange in which ONE will be purchased, which will be in a large plant and one hundred smaller in different countries, but all controlled by a single company. This will lead to a good liquidity, since we can see that Bitcoin exchanges close new records, stop operating in encrypted pairs that grow too much and go into maintenance mode when people sell Bitcoins massively. There is no liquidity because everything is scattered.
The decentralization of Bitcoin only applies to the network, to the nodes, and this will also have OneCoin when it starts. It is easy to decentralize the nodes by country, but they will control them, and we will know that there is no speculation because there will be limits on the stock exchanges for buying and selling orders in proportional growth of the market. Someone will say that this is not credible, but it is necessary to protect the currency against speculators. In addition, they will block 60% of currencies to control the supply and demand of central banks, as well as to maintain price stability and avoid deflation. The final number of currencies already resolves inflation (the shock wave has been done in a similar way).
For now, the main platform for the consumption of currencies is DealShaker.com, and there will be even more platforms. Keep in mind that OneCoin is still in the initial phase, and Bitcoin compares it and mocks it because it is not commercialized. It should not be compared with Bitcoin until it starts trading and demonstrates its domestic price. In addition, Bitcoin developers are concerned about the impossibility of regulating and controlling the flow of currencies, while Onecoin implemented KYC within the Blockchain, so it is known where each OneCoin has gone and there is no financing of terrorism, or tax evasion . Governments will like it.
In summary, what does Onecoin offer that anonymous open source cryptocurrencies do not have:
1.- A simple model, you do not need to keep the private key and deal with a complicated encrypted address that is needed for someone to send you Bitcoins. Here you have an account, a username and a password, and as easily as PayPal, it sends Coins and pays sellers. We saw what happened when Facebook launched the idiotic test concept that anyone can use without being open source.
2.- OneCoin can now handle more transactions now in a month than Visa and MasterCard for one year. They are millions, and Bitcoin can do about 7 in seconds, so transactions today take from a few hours to a couple of days, and commissions reach 30%. A hybrid system of validation of smaller transaction chains is used and a collection of large transactions entered into the blockchain is collected. As Bitcoin is trying to implement Lightning’s external chain validation to accelerate transactions.
3.- As KYC is implemented within Blockchain, you can not send coins before validating it, and if a coin is used for bad purposes, it is easy to keep track of what is happening, the key to getting the green light to the next cryptocurrency control.
4.- The centralized model and control of all currencies is to protect good people from bad. While Bitcoin praises that there is no dispute and the return of transactions, so the sellers of bad clients who take the service and reimburse money, for example in PayPal, do not mention that the injured customer has no one to contact if a bad seller cheats him. With OneCoin, everything is solved.
5.- The user’s security is one of the main concerns of Bitcoin developers, because when someone steals it from you, Bitcoin does not help you. OneCoin does. Paranoid and anarchist who love Bitcoin because they supposedly control their money. They are not right. No one will touch your OneCoins or freeze your account unless you break the rules. It’s like saying that it’s bad that the policemen carry a gun because they can always kill us. No, if you do not deserve it. And the fact that Bitcoin cannot freeze the account is good only for those who want to work according to the rules, and nobody can do anything about it.
6.- No speculators, no fraud, because the company controls liquidity, there will be a buffer of blocked circuits to avoid deflation and to preserve the relationship between supply and demand.
7.- The price of the currencies is stable, and the users will even have the benefits of a setback of currency of the sellers that are registered in the system. When you register a Bitcoin merchant you do not have any of that.
Which brings me to the question “where is MLM in all this?” Because at this moment OneCoin can only be obtained through them. OneLife grew too fast, too big and not very organized. The group of malicious vendors came together because they thought it was a quick pyramid scheme to make money. Of course, anti-mlm blogs also began to literally convey the nonsense that malicious network users were doing to harm OneCoin and they did not even believe or know what it was. People stopped selling pots, creams and many other things when they “heard” that the money is in Onelife, but they did not know anything about cryptocurrencies, so they made a bad image due to that “mentality”. Of course, for that, the company is guilty because they did not provide an adequate education. But in three years, as I see, people progress, scammers are expelled or arrested by their own countries or leave on their own when it is very difficult. It is hard to lie and promise abnormal gains and not be punished for it.
So, the anti-mlm blogs they write are even worse: they just do not know anything about cryptocurrencies. But they also learn, and the material they write is and is not a lie. It is not a lie, because most of what they are writing is done by the users of malicious networks, it is the curse of MLM, and it is a lie because they attribute everything to the company, since they are forced to do it, and of no way they will admit that these people they write about really violate the company’s rules and a little will be punished for it. Nobody can expect the company to punish the user of the network before it is already a violation, which of course stands out a lot in anti-mlm blogs.
A lot of items are, for example, “central bank warnings” against OneCoin. For each country, you have an article, and it’s just that the banks warn people and ask them to be cautious when they invest in cryptocurrencies because they are not backed by the central bank, and if the money is lost, the state will not be a guarantor . It’s the same for Bitcoin, and that’s normal.
Then there are investigations in different countries that are normal: something new has emerged that cost billions of cash, a lot of citizen reports that it is a scam and, of course, governments have to investigate. They are called the main promoters, everything is explained by the exchange of papers, everything is fine, you can work. The investigations are closed or are in vain because there is nothing to do. It was only Italy where OneLife was penalized because 3 men manipulated their false material there with promises of profit and committed fraud, but they broke the rules of the company. That happened in 2015 when there was not much control. Today, things are much better.
So all this is due to excessive growth, but the basis of negativity actually comes from Bitcoin and open source enthusiasts. Somehow, people simply assumed that the cryptocurrency should be decentralized, open source, and that no one should control it. And they do not realize that Bitcoin is very centralized, in terms of networking and decision-making, because nobody asks people when something changes, only they decide, and the biggest ones steal all the money until we know who they are or where they are. Personally, I prefer to trust a company whose headquarters I can go to when I want and meet the people who are behind everything and who have a clear plan for the future. Why then should we use ONE and not the bank? Cheaper, faster and there are no border transactions and departures at branches.So, OneCoin is no less centralized than Bitcoin, and we’ll see it in a few years.Another problem is the closed code. A similar problem was when Apple took the open source UNIX platform to compete with Windows and create its macOS. They were selected by Linux open source geeks because of this, but my God, where is macOS today in terms of distribution, security and ease of use, and where is this Linux, which is exclusively for IT professionals and server platforms.
Although I personally disagree with this technology, none-transparency, when I see how much is humiliated and defamed, I can understand that it may be better to hide the code and developers and that developers work in peace, because this is not exactly a simple business . The only thing they could do is keep the geeks quiet so they can see their transaction in the blockchain, although they can also see it in their wallet. But I think the browser cannot be public because it would have to show KYC data. It may only be available to the authorities so they can easily verify what happens with ONEcoins. That is another advantage to regulate ONE as money.
The project is risky, of course, because it only needs to be tested in public transactions, to avoid people who promise towers and cities, to invest in cryptocurrency only what one can afford to lose, and if he makes a profit, first withdraw the investment and then keep playing.
OneCoin, on the other hand, is not a quick project where people withdraw money quickly. It is a long-term project of stable cryptocurrencies, easy to use and safe for merchants, which has the possibility of being regulated by governments as money. Will he get it? No one can guarantee it, but if the number of traders who already receive ONE in the DealShaker is increasing enough, a wheel is more likely to turn.So far, many things have been done wrong, but no one is perfect. They have had successes, improved, evolved and survived until now. Now, slowly until the end of the initial phase and to the new beginning on 08.10.2018. Written by Jose Gordo in Spanish and translated to English
Written by Jose Gordo in Spanish and translated by Ayo Asojo, A Ruby Leader from Nigeria