Posted on by Lydia Kariuki

MCAP

What is MCAP?

Bitcoin growth fund is a blockchain startup based out of Dubai and India which was started in January of 2017. It functions as a venture capital fund where small investors with little to no knowledge on cryptocurrency investments can plug in and earn passively from the fund. The native token of the Bitcoin growth fund “MCAP” was launched through a successful initial coin offering (ICO) process and is required for all transactions on the platform. The founders of the Bitcoin growth fund (BGF) include Phil McCauley, Nagaraj Konda and Mattias Frost.

MCAP Labs is a feature of the Bitcoin growth fund that supports education and research on the platform to ensure that investors reap the maximum returns from their investments. It allows investors to invest in a single vehicle that selects the most promising cryptocurrencies and lumps them together as one investment.

MCAP promises huge returns to its investors. The MCAP token is an ERC20 token recorded on the Ethereum blockchain, it is completely trustless and decentralized. MCAP labs have focused on three key areas: Mining research, ICO evaluation and ICO investment. The MCAP token is a mining and ICO fund.

Mining Research

Mining is the process through which most cryptocurrencies are generated. It is a highly energy intensive and this prohibits many individuals from taking part in the process. Not only is the mining hardware expensive but so is the maintenance costs of supplying the electricity needed. MCAP has created a system that makes the most of cryptocurrency mining to allow investors to profit.

ICO Evaluation

Similar to crowdfunding, ICOs are a way of raising money for blockchain based startups from a community of supporters. As much as it is an effective way to raise money, it can also be abused and misused to exploit unknowing investors starting out in the cryptocurrency space. MCAP labs has developed a unique test known as a KPI test through which upcoming and potential ICOs are screened to establish their authenticity and investability. The KPI test focuses on the unique strengths, the concept, the team and the investment potential of the ICO. The aim is to distinguish between mediocre and promising ICOs that can be included in the portfolio of MCAP labs. To this effect, they have created a high level investigative system to weed out fraudsters, because these abound in the cryptocurrency space.

ICO Investment

The third arm of MCAP labs focuses on investing the funds raised through ICOs and mining. The funds collected are invested in the mining of various cryptocurrencies like DASH, Ethereum classic, Monero, Litecoin, Z-cash, Bitcoin and others.

How it works

Bitcoin Growth Fund allows rookie investors to invest as little as possible in the fund that is allowed by most other growth funds in the market. However, this “minimum amount” seems to conflict in different parts of their website.

One part claims that you can invest as little as 0.01 BTC while other parts claim that you can invest as little as 1 BTC. Also, this “minimum amount” is pegged on the current value of Bitcoin which keeps fluctuating. If we go by the highest value achieved at the beginning of 2018 (almost 20,000) and take the amount as 1 BTC, then this makes the amount insurmountable to many would-be investors in the fund.

The fund uses colored coins created on the bitcoin blockchain. This allows the platform to have all the related features of the blockchain including decentralization, transparency, immutability, and peer to peer relationships. When users invest in BGF, they are actually buying tokens that grant them access to the fund.

The fund is controlled by a committee comprised of fund managers and an advisory board. The committee decides how the funds should be invested after carrying out extensive market research. The shareholders decide whether to hold or sell their tokens depending on the performance index of the fund.

The value of the MCAP token appreciates simultaneously with the value of the growth fund. The Bitcoin growth fund has two wallets for storing tokens; Indiesquare Wallet and Freewallet.

What is the problem that MCAP Solves?

Cryptocurrency markets are extremely volatile. It is hard to predict when the market will be on a bull or bear, even with the best indicators the market sometimes disappoints. It is a common saying in cryptocurrency circles “do not invest what you are not willing to lose” because investors are always faced with the reality of losing it all in the blink of an eye.

The volatility of cryptocurrency markets is incomparable to that of the traditional stock exchange, as much as the latter also fluctuates significantly.

This puts even industry veterans at risk unless they are equipped with the right tools to help them make accurate predictions on the market most of the time.

Also, the market is currently flooded with a mix of high potential cryptocurrencies, but it can be hard to track all of them and make the right investment moves.

With this picture, the market needs a solution that saves an investor from this entire headache. A tool to track the movements of high performing cryptocurrencies is needed.

MCAP tries to make the right decision for the investor by charting an investment path with the most promising returns. Rather than the investor putting his many in numerous digital assets, MCAP combines these assets into a single asset to make tracking the investment easier.

The MCAP token uses the ERC 20 protocol for peer-to-peer transactions. All MCAP transactions are recorded on the Ethereum Blockchain to ensure immutability and transparency. MCAP has developed suitable algorithms to predict the best alt-coins to mine to get maximum profits at any given time.

As opposed to how traditional markets operate, MCAP is an open market that gives all forms of investors control over the market. All players are equal and have an equal chance of making profits from the system by investing in the well researched MCAP token. The experienced team of analysts will ensure that the raised funds are invested in the most promising digital assets. MCAP will keep reinventing its portfolio of digital assets to ensure a constant influx of fresh capital into the distributed economy.

ICOs are the novel way to fundraise for blockchain projects. However, it is difficult for the average investor to distinguish the real value from the fake ICOs. If investors had a tool that could accurately predict which the most promising ICOs, this would be the surest way to earn the highest returns from cryptocurrency markets. Identifying the real value ICOs and investing in them would also serve to boost the projects fundraising efforts, this is how BGF acts as a venture capital platform.

How does MCAP Solve the problem?

With MCAP, investors can join and invest in the Bitcoin Growth Fund. This saves the investors the headache of having to sift through dozens of potential digital assets and select which ones to invest in.

MCAP allows investors to take part in the mining of high value assets and crowdfunding of high return cryptocurrencies. BGF has developed an algorithm to calculate which Altcoin will fetch most profits if mined at any given moment based on three features; the difficulty level, trading volume and the profit that it could potentially generate.

BGF has an ongoing process to continuously analyze the various upcoming ICOs based on over thirty parameters. Some of the parameters include: viability and scope of the product idea, intellectual background of the founders and team, applicability of the concept, industry sector, etc. with this extensive research, it is possible for MCAP to accurately predict and highlight the most promising digital currency, the behavior of the market at different times and the high-value ICOs.

Investors on BGF receive semi-annual dividends on the amount invested in BGF and also can trade MCAP when it gets listed in cryptocurrencies exchanges. This is how the Bitcoin growth fund operates:

For investors

  • Hunt for ICOs

BGF will use a unique set of algorithms to hunt for the most lucrative ICO bases on numerous parameters. BGF ensures that due diligence is carried out to protect the investment of users on the platform.

  • Best Price Listing

BGF is able to negotiate the lowest possible token price which is lower than the price stated on the ICO’s own website. This is to ensure that investors reap maximum returns when the ICO is over.

  • Buying ICO Tokens

Users can buy tokens from as low as 0.01 BTC

  • Token/Coin Delivery

Once purchased, the tokens are held in a suggested wallet and will be swapped for coins as per the ICO schedule.

BGF uses smart contracts to lock investors’ funds safely in an escrow format when they purchase any ICO tokens. The funds are released to the ICO team once they have released the stated tokens. This is done to protect the investors’ money.

For ICO

  • Application

The BGF team identifies promising ICOs to invest in. Upcoming ICO projects can also reach out to BGF for consideration.

  • Due Diligence

BGF has to carry out extensive due diligence to protect the interest of their investors. Therefore, BGF will have deep conversations with the ICO teams to gather enough understanding of the project and determine if it’s worth an investment.

  • Listing

After the due diligence stage, ICOs that have met the threshold will get listed on the BGF platform where more than 97,000+ users can view the ICO and invest in it.

  • Target

Funds raised on the BGF platform are held in a smart contract and once the target is attained, the ICO releases the tokens and the funds are released.

ICOs go through a rough time in the initial phase of fundraising. Investors too may struggle in identifying which are the promising ICOs and which are not. BGF fills this vacuum by linking the most promising ICO projects directly to investors. BGF also provides technical and nontechnical support for ICO projects. MCAP has a stringent policy on cost saving for efficiency. They go by the slogan “Look after the pennies and the pounds will look after themselves”. What this means is that by ensuring that all costs are kept at minimum MCAP is able to maximize on profitability. To sum it up, this is what the whitepaper has to say

“We at MCAP have realized the potential profits which can be generated from mining the high growth cryptocurrencies and have developed an algorithm to calculate which cryptocurrency would be most profitable to mine at any given moment based on various parameters.”

What makes MCAP better than its competitors?

The Bitcoin growth fund is open to investors across the divide. They have tried to keep the minimum investable amount considerable.

Unlike other traditional investment funds, MCAP is decentralized, transparent and cannot be easily manipulated by a few individuals.

How can MCAP be categorized?

MCAP is a digital currency; it is also an Index fund and a venture capital fund for blockchain projects.

MCAP’s vision on security?

Not much is said about the security features of BGF. However, they mention that they use smart contracts to lock investors’ funds safely in an escrow format when they purchase any ICO tokens.

The funds are released to the ICO team once they have released the stated tokens. This is done to secure the investors’ money.

The blockchain is a public ledger that is secure and transparent. MCAP uses cryptographically sound techniques to secure the authenticity of each transaction which is immutably added to the public ledger.

Examples of MCAP use cases / applications.

The MCAP labs is the research and development arm of BGF. It carries out research on the cryptocurrency market and creates investment solutions for users. The MCAP token is an investment vehicle that allows investors to invest in a single token that is representative of numerous high-value assets. With MCAP, investors can take part in mining the following cryptocurrencies:

  • Bitcoin
  • Dash Coin
  • Ethereum
  • Lite Coin
  • Ethereum Classic
  • Z Cash
  • Monero

Token owners can also trade tokens on the BGF platform. Blockchain projects can also use BGF to fundraise and interact with potential investors. DenCity is an example of a blockchain project listed on the BGF platform.