What is the Value of Value?
The origin of money, as we know it, evolved out of the concept of a common store of value. This enabled primitive societies to evolve from barter systems to monetary systems and could be described as the single most revolutionary concept of civilised society. Nevertheless, the question remains, what is value? Value was initially seen as tangible; often was related to the supply and demand dynamics of a common underlying asset, usually gold. This kept understanding the value of money relatively simple. A currency was worth the sum of the assets of that economy could generate divided by the number of units of that currency.
However, when the United States formally abandoned the gold standard in 1971, that all changed. Rather than being linked to any asset, the value of money was now based on the intangible promise of a central authority to meet general obligations. Currencies now became unsecured promises. Given the importance of money to our society, in a simplified sense, all of commerce now became based on faith in the actions of the central bank rather than on the tangible, real value.
Enter cryptocurrencies! A way to democratise the concept of value and strip the elites of their power to manipulate the purchasing power of the masses. If money was to be created digitally anyway, why not let the people create their own stores of value. If everyone could see who was creating value and where, then the power heads right back into the hands of the people to determine what value was.
However, cryptocurrencies themselves don’t actually solve the problem because cryptocurrencies themselves are not exactly backed by anything except the goodwill of its community. In fact, the major existing payment networks can arguably settle transactions even faster than most cryptocurrencies and can facilitate cross border commerce at fractional prices. The simple result is this, if, as the World Economic Forum argues, fiat currencies are ultimately going to be digitised (in fact, the Czech Republic is well on the way to doing this), cryptocurrencies must be more than a store of value. A cryptocurrency cannot compete, as a store of value with the fiat because it inherently has no economic value. In fact, even if they aim to provide a viable alternative, it is likely that central banks will erect boundaries to prevent the interaction of the two systems, leading to the death of the weaker party. Survival of the fittest is truly a universal principle.
What we need to return to is a proper application of value; measuring it by the impact that it has on the real world. OurCoin Classic seeks to leverage the transparency advantages of the blockchain tied to real world investments. The token is backed by tangible, real world commercial activity notably via funding of renewable energy projects, greentech entrepreneurs and ethical
projects included in the portfolio.
The team behind OurCoin Classic also believes in empowering the community of people who believe in us. That is why the community itself will determine what ventures are worthy of being funded through a transparent digital voting system. Thus, your token is not only backed by real assets that benefit the planet and grow in intrinsic value, but you can vote to support the causes that are most important to you.
Lastly but not least, OurInterest Inc will utilize the ecosystem powered by OurCoin Classic to pioneer a global green and ethical digital standard to empower the global consumer to channel their purchasing power to companies that ethically and sustainably produce their goods. All of this would be automated using blockchain and big data analysis techniques. More on that to come but you don’t have to think too hard to see what a transformative idea that actually is!
Empowerment, real value and a strategic position for a global vision! What better kind of investment could you ask for?
Author: Pierre Forde- Investment Analyst at OurInterest