As usual the internet is flooded with supposed reviews that are actually just affiliate sales pages. “Is the Bitcoin Robot a scam”? Surprise, surprise, it’s great, buy it here!

We do NOT do that, ever! Omar Eltoukhy has a reputation for being one of the tiny minority who thoroughly test forex eas and robots and gives his honest opinion.

Most failed his due diligence and went in the bin and he told you why.

The few that did make it on to his live account were then optimized and his findings and results were shared amongst members.

We have managed to obtain a copy of the Bitcoin robot.

If you would like to know more about bitcoin click here.

Normally we test and conduct our due diligence on a demo account for months before risking real money. However thats not possible with the bitcoin robot so we have decided to throw caution to the wind and invest our petty cash budget for the next few months :). We have “invested” $200 into an account and we will share our findings here in the blog in the coming weeks and months.

Here is Omar’s introduction to bitcoin and our testing phase of the Bitcoin Robot:

Hi everybody, a few weeks ago there was a huge new product launch for the Bitcoin Robot (btc robot). All the usual claims of get rich quick and never work again! I am a little too long in the tooth for all that nonsense but having read the review from member James: Members Independent Bitcoin Robot Review Marc & I decided to give it a go using the same in depth analysis that I use when testing forex eas.

In my years of trading forex, a good portion of my time has been taken up using, testing and tweaking EAs.  The fact is, the EA got me into trading forex, and has been part of my portfolio ever since and is inextricably linked to my experience as a  trader.  They have evolved through a very interesting process.  The humble retail EA really started small, their scope was rather narrow but some of them made money and this got people excited and triggered a BOOM in both sales and growth of the market as a whole.

All of a sudden, there were EAs EVERYWHERE and my inbox used to get about 20-30 new offers for a new EA every week.  Along with that came the scam artists or simply people more interested in the marketing rather than the quality of the product (we all remember those 20-page long scrolling websites splashed with “stats” and “screenshots” and yachts and mansions along with those glowing “testimonials”).

Interestingly enough, just about when EA sales and interest were at their zenith, the currency market changed into an environment difficult for many EAs.  Even proven winners started to lose and the EA boom went bust.  With wallets drained and many hopes dashed, customers became very numb to the marketing and advertising of new EAs and are less impulsive to buy “this week’s hot item”.  For me personally, I really only get interested in something new if I hear about it from someone I truly trust.  When Marc asked if I would check out not only a new EA, but a completely new currency, my interest certainly was piqued.

Welcome to the Bitcoin Revolution.

For those of you who are fuzzy on “what the heck is a bitcoin??”, allow me to give you a quick lesson based on what I’ve learned from a few weeks of research into the subject matter.  Of course, I wasn’t just going to test an EA in a market that has around 1 Billion US total global market cap -I’m more of a multi-trillion dollar market man myself 🙂   I wanted to see what the fuss was over this entrant into the financial scene.

What Is Bitcoin

Bitcoin ladies and gentlemen is a completely digital currency with no tie to any bank, corporation, or sovereign nation.  No central bank to fire up the printing presses when politicians want to go shopping.  So where does it come from???

Think of bitcoin as the digital version of gold or silver.  Bitcoins have to be “mined” by using specially designed computers to essentially complete very, very, very tough math problems.  Interestingly enough, the first bitcoin mining computers actually used video cards for processing because they are designed in a matter that lends itself very well to solving the bitcoin algorithms.  When the computer or group of computers finishes a “block” of algorithms, they are rewarded with bitcoins.

As more people try to mine, the more complex the calculations become, requiring more computing power and time to get the same amount of bitcoins.

This keeps the outflow of bitcoins into the market restricted and on a consistent curve.

This is important because it keeps the currency stronger and prevents a flood of currency into the market destroying the supply/demand dynamic.

Imagine for a moment, it became increasingly expensive in real terms for the Fed to print money every time they printed more money.  The effect on the dollar would be immense and keep the dollar strong.  Of course, this would lead to deflation, and a host of other economic issues, but it is this humble authors opinion that after the initial shock to the system of actually “eating healthy”, we would all benefit.  Back to bitcoin.  So after bitcoin is mined out of the ether, what then??

After they are mined, people can buy and sell bitcoins  for either investment, or simply to use.  Bitcoins have gone up in value from around $10 when they started to about $140 a bitcoin now, just 4 years later.  Bitcoins can be exchanged for goods and services at more and more places all the time, although right now, it seems to be internet-based businesses only.  The beauty of bitcoins as a form of payment is the fact that they don’t have to be “processed” through a bank.  Think about it: When you pay for something with your plastic card in your hand, you are not the person actually handing over the money, your bank is (or credit card company bank) paying another bank.  Obviously they don’t do that for free.

And how about cash purchases?  Where did you get the cash from? (I’m not talking to tipped employees here)  Bitcoin cuts out that middleman by letting you pay someone directly.  The money comes directly from you and goes to who you are paying and never touches a bank.

So how do you prevent counterfeit currency then? 

Remember those bitcoin mining computers?  They also serve the purpose of verification of bitcoins once they are “in circulation”.  Unlike gold and silver, which can be melted down and not be traced later, each bitcoin has a “history” attached to it as it moves from owner to owner, and that history is stored and tracked by the cloud of computers that verify the bitcoins.  In case you’re wondering, you store bitcoins in digital “wallets” which are both free and like an “address” for your money that is tied to  you and you alone.  Because of these factors, bitcoins tend to be very cheap to process and exchange into other currencies.

Wasn’t this an article about an Bitcoin Robot?

Oh yeah, I just figured you’d want to understand bitcoin a little first.  The product itself is called “BTC Robot” from the creators of………….you guessed it………….the original EA pioneers in forex……….the FAP Turbo guys!!  After all this time, they are still in the game and getting into new regions of EA trading.  I started my EA adventure with FAP Turbo and I was curious to see how this EA was going to do with bitcoin.

The bitcoin market is just like any other currency in the sense that it is traded in a de-centralized exchange, BUT bitcoin is traded seven days a week instead of five.  It took me a little while to get things figured out since there isn’t a platform like metatrader to use.  I have opened an account at Mt. Gox (a bitcoin exchange broker) and I am going to deposit some real money in there to take this EA for a test drive.  It operates like other EAs by selling and buying the currency as price rises and fall is hopes of capturing profits from the move.  The included information stated that the more volatile the market, the more money the EA will make.  It will have its slower and busier times that it trades, just like almost any forex EA.   I am very excited to see the results and I will be sharing all the experiences with you when we get some trades in the live account.  Stay tuned for more!!!

If you want to check out the BTC vendors page click the following link:

Author: Omar Eltoukhy