There is a couple of reason why it’s difficult to adopt bitcoin as a legitimate currency.
Value swings of less than 10% each day, physical thing you can carry in your pocket which is mandatory for the vast majority of spenders and the ability to acquire without paying ridiculous fees to someone
The volatile nature of the cryptocurrency also undermines its credibility. Volatility is the key parameter to understand the concept of safety in a reserve currency. Compared to emerging market currencies, bitcoin is viewed as extremely volatile. Some of that, may be due to the fact that many of these countries — China, Malaysia, Pakistan, Philippines and India — have repressive capital controls in place
Bitcoin have been trying everything to solve this but the volatility is still there and I have been studying the various crypto-currencies and BITBAY probably one of the most undervalued crypto-currency out there might have a solution to the volatility of bitcoin and crypto currencies in general
In this article I will show a feature that bitbay has that would solve the problem of bitcoin volatility and discuss the qualities of bitbay in the remainder of the article and ask readers to go and check it out because if there is a real project out there bitbay is one of them
The feature bitbay has that can solve the problem of volatility is decentralized pegging or rolling peg . It is just control over the supply. The value of almost anything is determined by supply and demand. So the problem is solved at the root. Demand can’t be forced but supply can be controlled
Currently many cryptocurrencies pegs have been centralized. Tether getting hundreds of millions of dollars of volume daily can lose all their customers funds in an instant if their peg is made illegal or they run away and also it is a hard peg, if the dollar drops so does Tether as the peg is tied to the dollar. In fact Tether crashed temporarily when they had bank issues
The purpose of the peg is to reduce volatility in the value of BAY. Instead of allowing the value to fluctuate, the peg will cause coin 'supply' to fluctuate by freezing/unfreezing coins. The peg is built into the blockchain, and so any market exchanges at a value other than the peg will be rejected (meaning your coins are locked to peg value). If the community were to vote to stabilize BAY at $100, a massive portion of the coins would need to be frozen to reduce supply and increase value
Think of it as a proportional thing. If you had 100 BAY and the community voted for 1% value inflation, one of your coins would be frozen.
Frozen coins are delayed. These could be delayed from 1-3 months. So if you send me 100 frozen Bay today, I will not be able to send them to a new address for 1-3 months. This means they can't really be used for buying stuff on the marketplace. Instead a way is found to allow them to be used as deposit
The rolling peg is the genius ingredient because it decouples the conflicting priorities of a stable denomination for the goods exchange and a volatile risk asset that enables non-trading participants to support the value of the denominating currency by investing in it directly.
The whole process is prone from abuse and centralization from the development team in the sense that is tied to the users of the blockchain rather than the development team . So even if the development team get threatened or corrupted, it’s still not in their hands to determine the modus operandi for the peg
Blockchain generally is supposed to be decentralized but what we have noticed is anytime there is news on of bitcoin, altcoins tank with it. What this shows is this action is centrally coordinated
By making the daily inflation and deflation more aggressive and making supply purely algorithmic, you can force any value at the cost of freezing lots of coins
Simply put, a dynamic peg, control supply through deflation and inflation
Users funds are frozen based on when they received and sent them
That makes it perfectly fair and gives users two balances: Liquid and Reserve
Or Liquid and Frozen
A user can only move frozen with a one-month delay thus making those funds "slower"
At any moment the network can inflate making the frozen funds fully liquid and "fast" again
Because the system can deflate, it can drop supply of coins from one billion to one million for example
And easily "back" the currency with buy walls that exceed the liquid supply or that at least are strong enough that not everyone will sell into it
This way volume can be determined by looking at demand. Unlike other coins there is no need to "fake it" to "make it". This should get rid of the market maker and replace him with pure technology
So it is basically control the supply with votes to increase or decrease price"
A sophisticated investor will know the value of his frozen coins as that is the more speculative market, he would not want to oversell or undersell them.
He would want to pay close attention to his liquidity ranges for every coin he holds... the software will give a user-friendly way to see that with color-coding the inputs
The more blue the more frozen, the greener the more liquid along those lines
The point of the peg is to provide relative stability. Meaning the price will move more like a blue-chip stock instead of the insane volatility that we are accustomed to in crypto world
Without that kind of stability, real users are never going to accept cryptocurrencies as alternative because normal people do not want volatility in their money that frequently
The goal is stability, not a peg to the dollar
To the second part of this article, its really surprising that a project like Bitbay is grossly undervalued and not much attention is given to it and for Christ sakes, its trading for less than 3 cents at the moment
For anybody used to the crypto world, it’s a obvious there are a lot of scams and pump and dump schemes all over the place but for a real project to escape the attention of crypto world is to say the least very befuddling
As a matter of fact, I have decided to post a video from one of my friends Ivan a programmer from Sweden as to how easy it is to create a coin by connecting to nodes of other projects
The link is attached
- how to create a fake coin
You need to listen to the founder of bitbay David Zimbeck whose original project was Bithalo. He is a very knowledgeable, unassuming and very endearing character who take time to explain everything about cryptocurrencies and the project he is working on. I hear people talk so much about smart contract and Ethereum but it might surprise you to know that David is the innovator of smart contract and nobody ever mentions that
He developed the first completely proof of stake coin in Black coin in a very efficient way because you don’t waste energy doing that. It got copied so much
Some of his initial partners decided to play a fast one but Davis has stuck rigidly to his project and if what I am seeing in Bitbay is anything to go by, I can tell you assuredly that Bit bay is going to be around for a long time. I can’t say the same of so many Pump and dump coins. Patrick Dai one of the promoters of QTUM was known as Steven Dai when he was associated with Bit Bay. When people start changing their names one has to be very careful
Bitbay will be the first world wide to implement a decentralized peg that will stabilize the price by fluctuating the circulating supply through algos.
It's an enormous innovation in the crypto world to advance world wide adoption
For those of you new to crypto “last mile” is the term often used to describe the conversion from fiat system to crypto system and back. This has been one of the hardest things to solve, and has thus been a major obstacle for mass adoption of digital currencies.
There have been three main obstacles to the last mile:
- Government regulations
- Financial institutions refusing to deal with businesses that are involved in crypto
- Knowing who to trust in the crypto ecosystem
There are ways around the first two issues, but they will always lead you to the third issue – trust. There is really no one you should trust in crypto
The cornerstone of BitBay smart contracts is the double deposit. If you are selling an iPhone you must also deposit the value of that phone in Bay. The buyer must do the same and of course, + send the amount of money you have agreed on. The deposit is locked until both parties agree to release it. If you are cheating someone, there is no way they will agree to releasing, and you will have gained nothing. The deposit must be made in Bay because that is the currency the system is able to lock up. But the payment could be in any currency. This means that BitBay is not only solving the last mile for Bay, but for all crypto-currencies
They have the most friendly and probably one of the fastest growing slack team. They are very welcoming and you can get Dave Zimbeck to answer any of your queries if you need clarity
A brief summary of their white paper shows that rolling peg + API + smart contracts is going to be the backbone of bitbay
I will appreciate if readers can go and research the facts that I have stated in this article instead of believing everything I say
This can easily reach the 100-dollar mark.
This is just a read to point your attention to a sleeping giant
you can join the slack community through this link http://bitbay.market/wp-login.php?action=slack-invitation
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