Bitcoin 2.0, aka Ultra Coin: Bitcoin's Derivative Layer That Allows The Virtual To Control Real Things

Reggie Middleton's picture

Reggie Middletons UltraCoinReggie Middletons UltraCoin

As should be obvious to many, I'm quite serious about recreating today's financial system. I'd like to introduce what some in the media have coined (no pun intended) Bitcoin 2.0 (which is actually just the true implementation of bitcoin), otherwise known as UtlraCoin. UltraCoin is the derivative layer that we're writing on top of Bitcoin to enable Bitcoin holders, buyers and sellers to do some pretty amazing things.

Here's the latest Max Keiser in which he and Stacey Herbert to a good job of explaining what I have in mind. Of course, I get to speak my mind in the second half of the show (~13:08 minute mark).

I am pushing very hard to have the Zero Trust Currency Contracts, the first implementation of UltraCoin, to go into open public beta by the end of next week. That means you will be able to short, leverage, go long and arbitrage BTC. The strategies I and my analysts and developers have come up with will blow... your... mind! Here's a screen shot of the early beta trading desk:


Reach out to reggie.middleton at or meet me at the North American Bitcoin Conference -

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fredquimby's picture

Forget ultracoin I mined 400,000 Stalwartbucks on my work PC over the weekend!

Wheeeeeeeee stalwartbucks bitchez! haha

shawnmike's picture

At these levels of bullish sentiment, fewer bulls isn't a contrarian signal but a sign that there are fewer investors willing to push the market higher.leather coats -

Godisanhftbot's picture

is SHMUCKCOIN taken yet?

Godisanhftbot's picture

GOLD, the beloved baghold of many here, is now a boring old man kinda thang.


All the hot $$$ is in bitcoin and other fantasies.

blindman's picture

perhaps you would like to invest in a bridge that
is being built as we speak. but not to worry about
maintenance and upkeep as it is just a virtual bridge
that will become essential in the real world once it
is finished and will make all real bridges , well,
i don't know? just real bridges that don't work anymore.
details will be released as they become available.
yet, i applaud the efforts of mr. r.m. and always
wish him well. he is trying to do something that
may be impossible but t least he is trying to do
something, i guess.

ebworthen's picture

Reggie, can I have one of those Ultra Coins to throw in with my Pet Rock, Cabbage Patch Doll, and my framed printout of my MySpace page circa 2006?

I'm with you and the other alternate currency libertarians in spirit; I just can't see it surviving.

Don't get burned, put no more than 10% of your assets into this.

Best of luck.

q99x2's picture

The finincial system is being re-invented despite your arrogance.

Waot a minute that was an oxymoron moron. What's going here. Who's rinning the show.

No good dirty rotten keyboard.

satoshi101's picture

Wow, why not bring out Elmer Fudd, and PeeWee Herman, certainly they would like you to buy into their pre-determined batch of BTC-Clone's.

Every fucking MORON who otherwise would  be selling penny mining stocks is now on the virtual coin bandwagon.

Should be telling, BUY GOLD, and turn off your ZH, I mean TV :(


madtechnician's picture

It's not a clone you idiot - it's another application layer on top of the original bitcoin 1.0 protocol.

q99x2's picture

All I've got to say is: Al Gore invented the Internet.

Sovereign Economist's picture

Lovely.  Just what we need... yet another PAPER MARKET!  Well... So much for Bitcoin.  The beauty of Bitcoin 1.0 was that you couldn't apply any of the manipulative derivative techniques to mess with it.  All  you could do was buy it all or sell it all in significant numbers to move it's 'price' around.  Which, of course, the bankers and globalists did to cause volatility to discredit and marginalize it.  But NOW... they won't even have to trade the "Physical" bitcoin (oxymoron- LOL)  they'll just buy or sell bitcoin futures and options.   Can you say "bComex?"

juggalo1's picture

You apparently don't understand the advantages of Bitcoin which have nothing to do with the lack of derivatives.

zipit's picture

Did that dude just snort an oz of coke or what. Effin' wired mofo.

Suisse's picture

Keiser is a pump and dump shill for premined trash quarkcoin. Reggie, you're no better than he is.

Save_America1st's picture

Great video and discussion.  I learned quite a lot as it really helps hearing you guys discuss these concepts so that someone like me can wrap my noggin around it all.

I still keep wondering though what new internet will need to be used that is safe from being hacked or turned off at the flip of a switch in order to circumvent the entire government, spy, central bankster, and stock trading/Wall Street system?

What happens if/when some entity fries the current system or what if it happens naturally by way of some kind of solar interference, etc.?

When/if the electric grid or interwebs goes down how in the heck will a world based on electronic crypto-currencies survive?  It sure puts a lot of pressure on such a system, don't you think?

I wouldn't mind having that system if we weren't fighting against a world-wide mafia from the banksters all the way up to the governments who wish to eradicate or at least corrupt and centrally control Bitcoin or other cryptos.

But I still think "going global" like that all the way leaves the littles guys and whole countries or companies seriously vulnerable to catastrophic failure if the SHTF.

I'm not trying to be paranoid, just practical.  I would still rather have a silver and gold backed (sound money system) that works in tandem with electronic "stuff" so that we can always have our options open in case something bad happens. 

Are there failsafe plans to use a new interweb outside of the current one that is secure?  A peer to peer type web?  I don't know a lot about all that stuff.  I hear the BRICS countries are setting up their own fiber interweb system of some kind, right?  Isn't it to get away from the "Western World" controlled system?

Thanks Reggie and Max...that was a great interview to help me out and I'm going to be passing it on to a lot of people who I feel will benefit from it as well.  Can't wait to hear more stuff like this going forward and maybe some answers to my basic questions/worries about relying on the internet for this stuff.

Anybody else have any thoughts on this???

Go Broncos and Seahawks :-) 

Time for a beer!

Thanks again!

madtechnician's picture

The creators of TPC/IP had no idea where it would lead , they would have never dreamed that audio and video content would be streamed over it. The bitcoin protocol has the potential to take over the entire global financial marketplace , stock markets , bond & FX , the whole lot ....

One World Mafia's picture

Until Russia finds its way thru the backdoors...


bitcoinbear's picture

Not a day goes by without bitcoin amazes me. 

I Write Code's picture

Build your tower on the shifting sands.

Grosvenor Pkwy's picture

From RationalWiki:

"Bitcoin takes the monetary system back essentially a hundred years. We know how to beat that system. In fact, we know how to nuke it for profit. Bitcoin is volatile, inherently deflationary and has no lender of last resort. Cornering and squeezing would work well - they use mass in a finite trading space. Modern predatory algos like bandsaw (testing markets by raising and suddenly dropping prices), sharktooth (electronically front-running orders), and band-burst (creating self-perpetuating volatile equilibria in a leverage-sensitive trading space, e.g. an inherently deflationary one), would rapidly wreak havoc. There is also a part of me that figures regulators will turn a blind eye to Bitcoin shenanigans."

Full reference written by someone called "JumpCrissCross": who states:

"I was a quant prop derivatives trader at an investment bank ..."

I Write Code's picture

Good stuff, Gros.  But can they do those tricks without actually putting big (real) bux into Bitcoin to execute against?

Grosvenor Pkwy's picture

I'm not a real trader, I'm just quoting someone else who claims to know about this. People will have to make their own judgement concerning these quotes and the related discussion.

Later in the discussion JumpCrissCross says:

"Note that I wouldn't recommend trading Bitcoins at a high frequency for the same reason that HFs don't mess with penny stocks. The pay-off is too low compared with the infrastructure investment required. I'd probably also blow my cover with the exchanges."

bombdog's picture

What about Silvercoin 2?

Basically what you do is have a market where producers sell goods to consumers for Silvercoin. Savers will save silvercoin and producers will be able to borrow and lengthen the production cycle.

Nah... on second thoughts let's sit a home and consume electricity to trade some virtual coins. Somebody else can add value, we can flip coins all day long while the slaves get their hands dirty. If we can persuade them to accept our coin for their wages then all the better! Tell you what it's better than FRNs though. Fed monopoly bad, bitcoin monopoly good. Questions?

madtechnician's picture

Naa , won't work , impossible to stop the fraudulent manipulation of metals - its impossible to know exacty the gold : tungsten : rehypothecation ratio of any central or private banks plus sifting through 1000Kg of ore with toxic chemicals and massive amounts of energy in the hope of finding 2g of the shiny , maybe that will work in the future, but maybe the electronic Bitcoin system will work much , much better ....

bombdog's picture

Are you saying you can't re-hypothecate a bitcoin? Gold exists in the real world. And guess what? We live in that real world, where gold can be inspected and audited. It is a fallacy to assume that becuase gold can be used fraudulently that gold is itself somehow an inferior money. Hubris too if you have nothing but a bunch of numbers to sell to greater fools. Nothing says that numbers held capitive electronic system are inherently valuable, no matter how difficult it is to calculate them.

As for mining: there is plenty of gold. Nobody needs to mine any more anyway.

There's no reason for one set of numbers to be more valuable than another, unless it's by force of law that bitcoin is to be used for paying taxes etc. Why the bitcoin, not the litecoin etc etc? Pretty soon, all things being equal and in a free market there will be lots of competing "coins". That's what you people fail to understand about money, over and over - money must have a footprint in some kind of fungible good or it is going to be short lived and cause pain to the poor people using it.

madtechnician's picture

Yes that is a fact and I am categorically stating that you cannot re-hypothecate bitcoin. It's a completely open ledger system , you cannot lie about how many bitcoins you are holding and you cannot 'hide' bitcoins either.

Oh, and good luck legitimately auditing any bank gold reserves , it would take many years and banks would just shift reserves around between themselfs before and after any inspectors arrive to make their audit assessments.

jballz's picture

Such a naive assumption I don't even know where to start.

When dollar was gold backed under Breton Woods everyone knew there were more dollars than gold backing them. It wasn't a secret. It still took around 30 years for anyone to try and run the stash. France tried and there was not even enough gold to cover their dollar holdings by then. So we closed the window and such is life.

If you think same will not be done with bitcoin, haha. You don't know the game.

Here is a simple road map.

Bank A borrows bitcoin at 1% certificate of deposit for 24 months.

Bank b declares they accept certificates of deposit in bitcoin as collateral.

Bank a issues two certificates of deposit against the one deposit, give lender one, gives bank b one.

You have now rehypithecated bitcoin in exactly the same fashion as gold backed assets in days gone by. The secondary market for cd becomes exponentially larger than the bitcoin aggregate, and trading in the notes becomes the dominant use as bitcoin reserves sit in cyber vaults.

Thirty years later someone tries to cash all their notes and the banks just pass a law that says no. But they will give you a new cd for your troubles if you play nicely.

That is where money comes from. Always has, bitcoin changes nothing at this level.

madtechnician's picture

Okay clever cloggs , sounds like you got me there.

Just one small problem with your argument: The blockchain is an open ledger. Bitcoins that don't exist cannot be spent , why would anybody accept a paper receipt for a bitcoin when a real one can be sent to them for free , electronically in an instant - it's easier and far cheaper to send a real bitcoin to somebody than to send a fake printed out paper fake one. Bitcoins are held solely in electronic wallets , not on paper.

If a bank holds 2 bitcoins and loans one out , they only have 1 left and the borrower has the other one. It's impossible to fractionally loan or to re-hypothecate a bitcoin.

No bank or person in their right mind would accept a 'paper' bitcoin because it would be impossible to actually spend even any of it , if you did manage borrow a 'paper' bitcoin you could tell within seconds if you had been loaned a real bitcoin or not by sending a small fraction of it to another of your own wallets at no cost whatsoever. A fake bitcoin transaction would not even be broadcast into the network let alone create a balance in another wallet.

You also seem to have forgotten that metals paper markets were created in the first place because of the difficulties with security and transport of metals , well with bitcoin there are no difficulties with security , storage and transport because that is entirely free of charge thanks to encrypted digital wallets.

If you think bitcoin can be re-hypothecated then you better do some more homework and understand what the blockchain file actaully is , it's a completely open ledger. Fraud is impossible.

Your paper bitcoin argument reads like this to me "well you can use your personal computer to write a message to somebody then print it out on paper and then mail it" , instead of simply pressing the "send" button in your email client.


Sabibaby's picture

I'll hold on to my silver and gold!

stacking12321's picture

i'll hold on to my silver, gold, and bitcoin.

AreaMan's picture

There is nothing positive about this development.


stacking12321's picture

correction: you can't fathom anything positive about this development.

as max mentioned, think of the savings (increase in productivity to society) if you remove the middlemen like bankers, lawyers, and other drains on productivity.

think about a company being able to do an IPO directly to the public without having to go through someone like goldman sachs.

i await to see how it pans out, but the potential is mind-blowingly huge.

bombdog's picture

None of these problems are solved because of bitcoins. They are solved by improved systems.

You can't have a system without banks because we need financial intermediaries to match savings pools to investment demand.

stacking12321's picture

bitcoin 2.0 might be a part of that improved system that you mention.

yes, you certainly can have a system without banks, it is possible to do away with financial intermediaries entirely.


GrinandBearit's picture

So, you stiill think bitcoin was created in the name of liberty and freedom huh? - LOL!

Naive ignoramous.

disabledvet's picture could have "Utica coin" or "Marcellus coin" or "Bakken coin" or "Permian coin." the algo's aren't nearly as important as what backs them. once you're talking energy then it's all about taking out "leakage"...both in the sense of energy (no more leaky pipes) and the coin itself (identity theft becomes identity recognition.) pay all public workers in bitcoins...dollars only used for "foreign" (continental) transactions...and there you go, no more dollar "save as a reserve."

the dollar would still give you more return than gold (one percent) but probably no where near "shale backed digital money"...say 6% backed by the oil and natural gas coming ou of the ground.

if this happened I don't see what could be done to stop it either.

Seasmoke's picture

So this is what you have been up to. Thought you were very quiet the past 6 months. 

Oldballplayer's picture

Oh boy...the ability to short BTC.  This should be fun.

These guys just cannot keep their paws off stuff. 

This is why they cannot have nice things.

EscapingProgress's picture

You have been able to short Bitcoin on at least one exchange (Bitfinex) for about three months now. There is absolutely nothing wrong with investing on margin (short or long).

madtechnician's picture

"short BTC" - good luck with that one. Shorting BTC will be a sure fast way to lose your shirt, The derivatives being spoken about here will shoot BTC to the moon you muppet.

One World Mafia's picture

The NSA will be there every step of the way becauce Bitcoin cryptography uses NSA designed SHA-256

...and RIPEMD160 which is hackable:

...and secpk1 which is not fully rigid which leaves room for a backdoor.

There you have it - or I should say the NSA has it - the backdoor to mining and your private keys.


Yardfarmer's picture

this generation of pasty faced two dimensional screen head imbeciles has been hardwired for this digital world since their conception. the uber nerd Kaiser is the poster boy and judas goat for the cynical ELF tweaked herd of zombies whose mantra of cyber triumphalism accompanies the translation of humanity into singularity and the brave new world order of the luciferian social engineers.