Rimbit Altcoin – Another Bitcoin Copy Paste. Scam?

Journalist:
April 10, 2015

Rimbit markets itself as the Next Generation in Digital Currency. It tries to sell itself as unique in many ways. It describes itself as making unique and controversial changes to provide the user with best options available.

It does indeed have some controversial changes and slightly unique addition. Though not as unique as you might think.

The biggest difference is in the way Rimbit has eliminated the middleman that is the lifeblood of Bitcoin and Altcoins.

It goes on to explain that essentially this means that the middleman has been eliminated. That the process of mining (the perceived middleman), the need for mining hardware and mining pools has been eliminated. That all you need is your wallet;

Essentially what this means is that Rimbit can be used day in day out, regardless of the technological or lack of, advancements in the development processes that are initiated by the middleman. This process is of course the mining hardware and the multitude of mining pools that must be used by Bitcoin to maintain its network. Rimbit does not need this as its been built and managed to just involve you and your wallet. Nothing else is ever needed!

Q. How does it prevent double spend? The ‘open’ wallets are doing the mining (aka, confirmation/verification) work?
A. Yes, the wallets perform all the confirmation and verification.

I think someone forget to mention to them that this is exactly what bitcoin was, and is. That early mining was done via bitcoin qt, and the mining hardware was the CPU of your computer. You can still set your bitcoin qt (or bitcoin core) to generate, its just that its rather pointless vs. ASIC.

This is CPU mining on another copy/paste of bitcoin, but here comes the unique bit. The ‘mining’, which Rimbit claims it has eliminated, is done by the wallet software (same old). The coins that are mined are sent to the company behind this new cryptocurrency. The users, those running the wallets, only retain a percentage of the coins that they currently have in their wallet.

Still with me? This is where it gets even better.

[divider]CCN[/divider]

If you want some of this new coin that you have just mined, you have to purchase them from the company behind it all.

You are using your power and wallet to mine the coins for the parent company. You then have to buy the coins off the company, and then you earn a percentage of the coins you have in your wallet while you mine more coins for the parent company.

Q. All wallets that are open (not locked) act as confirmation and verification tools – So the wallets do the work, but the new coin only goes to the developers?
A. No, if you want new coin, you can purchase it from our forum or via our Indiegogo campaign at https://igg.me/at/rimbit-com/x/6825374. We have continued use Indiegogo as it shows transparency on the income that’s being generated.

I did repeatedly ask if Rimbit had any other unique features; there was no reply to this part of my questioning.

There is no need to rush and that is why we have only recently had a market cap and on exchanges.

I could not find an exchange that traded Rimbit. It’s total trading volume stands at just over two bitcoin, with only one bitcoin over the last 24 hours. Do not be fooled by the total capital, nor the increase in growth, this can easily be gamed by some self-trading.

It is pretty much a clone of bitcoin, except you do not get the coins that you mine. Their website lies about the lack of mining (your wallet is doing it), and there are no additional features apart from sending the mined coins to the parent company.

Q. I am still unclear on the rewards for those running wallets for the confirmation/verification purposes (which uses the cpu of the person running the wallet). What is the ‘interest’ that they earn? What is it worked out from? And if there is any other additional features?
A. 10% for the first year and 5% every year there after is the reward. Interest is calculated on the amount in a persons wallet and it is their wallet that creates a new coin. Please Google POS algorithm for further details on the process.

And again, on their homepage.

Rimbit is not mined and instead purchased to help continued development of new and exciting features.

Really? They should probably do a little research into what cryptocurrency mining is, and what Proof of Stake is. If you, dear reader, are curious, you can read up more on Proof of Stake here.

Proof of Stake is one way of changing the miner’s incentives in favor of higher network security.

I do believe that there are niches for alternative coins to fill, but pump & dump scams will probably be around for a long time, please make sure you do your due diligence before investing in any coin.

Joel Dalais @JoelDalais

Joel loves Bitcoin and Digital Currency. He holds a BSc (hons) in Criminology with Criminal Justice Studies and Sociology, contributes for Bitcoin Magazine, is an Ambassador for Coloured Coins, Software tester and Advises for GreenCoinX and MultiSigX, and is Director of IBWT ("In Bitcoin We Trust"), a Digital Currency Exchange.