Anyone who's gotten involved in the maelstrom that is cryptocurrency investing knows the constant anxiety of checking to see whether one's investment has flown way up or dropped precipitously in the span of a few hours, and 'Basecoin' is a new cryptocurrency expressly designed to prevent that from happening. The coin, which has been developed by a one-year-old New Jersey startup called 'Basis', is built to keep a steady price of approximately one US dollar per coin, making it a practical, usable coin rather than something for pure speculation.
The structure behind Basecoin is complex, but it boils down to creating an elastic currency. In effect, the total amount of Basecoin in the world constantly fluctuates, which shifts the volatility to the coins themselves while keeping their price stable.
Key Themes Behind This Trend
- Price-stability in Cryptocurrencies
- Disruptive innovation opportunity: Developing cryptocurrencies with stable prices to minimize anxiety and speculation for investors.
- Elastic Currency
- Disruptive innovation opportunity: Creating a currency with fluctuating supply to manage volatility while maintaining price stability.
- Cryptocurrency Usability
- Disruptive innovation opportunity: Designing cryptocurrencies that are practical and usable for everyday transactions, reducing reliance on speculation.
Where This Applies
- Cryptocurrency
- Disruptive innovation opportunity: Advancing the development of cryptocurrencies with price stability for wider adoption and acceptance.
- Blockchain Technology
- Disruptive innovation opportunity: Enhancing the underlying blockchain technology to support price-stable cryptocurrencies and elastic currencies.
- Financial Technology
- Disruptive innovation opportunity: Integrating price-stable cryptocurrencies into existing financial technology systems for seamless transactions and reduced risks.
