San Diego based Airbitz, a bitcoin company providing blockchain inspired data security solutions, presented Robert Allen, Founder and CEO of CoinCube, at their monthly Thursday evening event for bitcoin supporters.
Robert describes CoinCube as a robo advisory service to bitcoin holders which follows trends and moves money. He told the Airbitz audience it is an exciting time for Bitcoin which has outperformed the U.S.dollar during five of past six years.
As a former precious metals broker in New York City, he believes that Bitcoin and other currencies cannot be analyzed like stock with price to earnings ratio. Bitcoin is a commodity and can be followed by its data of volume and price over a period of 100 day and 200 day time periods. Robert calls the CoinCube algorithm built on the mathematical model of these variables the “Wave Trend”.
“Any trading system will make good trades and bad trades- the system needs more good trades” states Robert and sees that as the CoinCube goal. He wants to help people not get slammed in volatile markets.
What has CoinCube achieved in its performance? Their website displays an increase of 78.2 percent in Bitcoin profit performance from November 2014 to November 2015 versus 60 percent for the U.S. dollar. The CoinCube members’ portfolios achieved profitability 72 percent of the time. He admits there are nervous investors and the biggest challenge is education to its users.
Robert explained CoinCube takes a long term movement approach and sets trend analysis at 30 day movement. The CoinCube algorithm looks at the big patterns within 100 day and 200 day moving day averages. He advises members to be comfortable with a six month holding period of their advisory service account – if not patient- then CoinCube not a good service at this time. “Anyone can become scared from a bad day,” according to Robert.
CoinCube will build out its company with a “basket of tools”. He announced “Tide”, its next trading tool, will become available sometime in February and will rebalance your Bitcoin portfolio with an allocation of currency assets including Bitcoin, Litecoin and the U.S. dollar.
Robert’s CoinCube presentation led to discussion on the role CoinCube will play in the future culture of cryptocurrencies versus the government fiat and banking systems. Robert maintains that all government fiat currencies are losing value over time- a function of money supply debasing their currency through funding projects which in the US is war or deficit funding.
Bitcoin can provide a solution to what Robert considers a serious gap in the future of the U.S. dollar and other fiat currencies due to inflation. There is inflation in the COL factor which makes the cost of goods higher. Purchasing power can be retained in bitcoin which is not affected by inflation.
He finds Bitcoin a fair or better system because it does not have inflation built into it, and it encourages investment which can bring prosperity to the globe due to its borderless currency. “It brings savings in remittance of transfer of money across borders.”
When asked about the black swan swimming in the future Robert feels that Bitcoin is young and may have fundamental problems, but it has made it despite everyone trying to find issue with it. The current defection of a Bitcoin code programmer from the Bitcoin Foundation is an example. Robert says the culture is strong supporting it advancement. He offers Linux as an example. Its system is secure due to its open source and the brilliant programmers improving its code.
What are the service options available through CoinCube and its fees? Their website contains a short video explaining how to establish an account, attach the Wave model to your Bitcoin exchange account and achieve management of your Bitcoin portfolio through its automatic computerized system. At this time there are four exchanges which can be utilized: Coinbase, BitStamp, Bitfinex and Gemini. You control access with a two-step process of a key and secret code.
The quarterly fee of .25% is based upon the profit you achieve and paid quarterly in BTC or USD. No profit; there is no fee. The other option is a flat .3 % fee of the account assets.
CoinCube sends a quarterly statement but does not have access to any redemption from your Bitcoin exchange account directly. A CoinCube account may be opened with a minimum .1 bitcoin or about $45 U.S. dollars of your Bitcoin exchange account value.
You may find out about CoinCube on its website https://coincube.io/