The Stablecoin System is More Than an Advantage. It is a Necessity.
Investors and consumers of any given platform have diverging interests. Both will benefit from the platform’s long-term success. Both win from quicker adoption and its hype.
BUT. Where the risk-tolerant crypto-investors seek token instability — as volatility bears higher returns, such volatility can cripple the internal economy. Days of extreme hyperinflation, followed by days of extreme hyperdeflation, override any consumer decision with currency hold-or-dump decisions.
In real world, there are central banks which undertake monetary policy to control the value of their nation’s currency. But what about a decentralized economy?
Some ICO projects ignored this issue by having the volatile token. That’s OK for now… until their platform’s launches. This issue is especially sharp for gaming platforms, which often rely on having many micro transactions.
Other ICO projects opted for a stablecoin system. A stablecoin can be made through several different ways, the most popular of which is to sell a stablecoin for a fixed price in a stable currency (such as 1 coin = $0.50USD). Great! Not great. Not for the investor. Investors rely on the changes in price to make capital gains and it is hard to gratify ICO investors with simple profit-sharing dividends.
BGX aims to build a stronger economy AND to take investors’ interests to heart. That is why we are introducing a two-token system. The BGX Token will be sold throughout the Crowdsale from May 22nd — June 19th. It will have a stable price throughout the sale (albeit, discounted at different periods). After the sale, it will appreciate in value significantly — being driven by the growth of the platform and the downward supply and upward demand pressures that BGX will institute (see our whitepaper!)
The BGT Coin, however, is not an ERC20 token. It will be used on the platform as the means of payment for all transactions and it will be pegged to the USD currency at a rate of 1 coin = $0.10 USD. The expected inflation of the USD in 2018 is 2.36%. With such low inflation, players, game developers, app markets, ad networks and all other participants can transact without worrying what their currency will be worth tomorrow.
Investors. Consumers. Everyone wins with BGX.
