Crypto Asset For Store Value
In Bitcoin White Paper, Satoshi Nakamoto described Bitcoin as the truly peer to peer electronic cash. Cash is currency or money.
In monetary theory, a currency should have 3 criteria:
- Unit of account
- Store Value
- Medium of Exchange
Bitcoin can be a unit of account as it is divisible. Though it is only has maximum 21 millions Bitcoin, 1 bitcoin is divisible to 100,000,000 satoshi. We can say that Bitcoin has 21,000,000 x 100,000,000 Satoshi or 2,100,000,000,000,000 Satoshi or two thousands one hundred trillions Satoshi. As it is programmable, Bitcoin can even be divided into smaller unit.
Can Bitcoin to be medium of exchange? The answer is, sure certainly. Now, Crypto Exchange usually offer fee of listing in Bitcoin, meaning that the Exchanges want to exchanges their listing fees with Bitcoin. To be a medium of exchange for day to day global commerce, bitcoin must be processed in huge numbers daily.
To process of transactions, Bitcoin can be processed using on-chain transactions and off-chain transactions. Unfortunately, Bitcoin only can process 3–7 transactions per second on chain as limited of 1 MB block size. Bitcoin SV has upgrade its Blockchain, so it can handle 14,000 transactions per second and even larger than that as it aims to remove maximum of block size to unlimited block size from current 2 GB block size.
BTC is positioned to be only store value. So, it is like USD, the process of transactions will be conducted by banks and payment service like Visa and MasterCard. So, BTC will be processed through lightning network. Lightning Network can scale to even billions transactions per second according to this article:https://www.trustnodes.com/2018/10/27/lightning-network-promised-millions-of-transactions-a-second-where-are-they.
So, the problem of bitcoin to be electronic cash is it should be store value. What is the store value? Can Bitcoin be a store value. There is continuing debate between pro and contra. Peter Schiff is among the contra. Anthony Pompliano is the pro.
Bitcoin now has value as it is exchangeable to other assets. The value of Bitcoin depends on acceptance of people to exchange with other assets. As long as people accept Bitcoin to be exchanged with other assets, it has value.
Bitcoin is like USD or other Fiat Currencies. As long as people accept it as medium of exchange, it has value. Bitcoin or USD is not like gold, which is commodity, has usecase for industrial application. Bitcoin or USD is also not be backed up by other assets.
The weakness of Bitcoin is, it is not commodity nor backed by other commodity or assets. It will always fluctuative as it depends on demand and supply in the market. It is now a speculative instrument for trading.
While the position of BSV differ from BTC as being positioned as commodity representing cost of storage of space on its blockchain.
Libra Coin is built to be resilient store value as it will be backed by basket of national currencies. USDT or Tether is also a store value as it is backed by USD and other asset. USDC is actually USD Token representing USD.
It is very interesting for me hearing that Liquid Network & Lightning Network of Blockstream will support other crypto as like USDT. Then, what is advantage of BTC, as it has weakness to be a store value, even is beaten by USDT. It also has limited capability to process transactions on-chain, far below XRP, XLM or Waves.
Most of crypto community now use crypto as speculative instrument. It is actually doesn’t fit with its mission to be electronic cash. I decided to create TheGreatCoin to be store value. It should be suitable for trading as it will be backup by other assets including other crypto, cash, companies, properties, or even gold. TheGreatCoin differ from Libra Coin as it seeks stability. TheGreatCoin seeks growth of value. It isn’t designed to be currency. It should be positioned as crypto based investment instrument.
The weakness of TheGreatCoin needs trust. But, it is better to give trust to honest manager. Here in the world will always needs trust. It is opposition of Bitcoin that is designed to be trustless.
As current crypto assets are widely perceived as scam. TheGreatCoin is designed to fix this scam system. To understand about TheGreatCoin, please white paper as follows:
://drive.google.com/file/d/1kqgZN6ejs2Uv0eREjEAddbd-GmgKw1ku/view?usp=drivesdk
Mamat Rohimat
Founder TheGreatCoin
https://www.linkedin.com/in/mamatrohimat