Why it’s important to get paid in JAX
by Maryna Trifonova, Head of Content at Jax.Network
Money is a social construct that is widely accepted as payment for goods and services provided. Thus, it should represent the amount of work put into earning these colorful banknotes. But what happens when it’s being printed out of nothing?
How the current fiat system works
As long as the majority of people agree to accept a certain currency, for example, USD, as a payment method, there is no threat to the financial system. Such a currency becomes a legal tender and gets widely accepted everywhere around the world. Essentially, it’s a belief that a certain amount of money can guarantee a certain number of goods and services now or in the future. Here’s when inflation comes into play. With an inflation rate being over 8%, the purchasing power of money has been decreasing rapidly over the past years. Thus, if people decide to save money for a big purchase like a car or a home, they are actually losing 8% of their money, in other words, time spent on earning them.
Another important feature of the current fiat system is credit. Central banks issuing currencies also involve themselves in creating various financial products based on actual money that we put in our bank accounts. Mainly lending the digital money to those in need and hoping that people will not cash out their funds altogether. Thus, they basically created a system where more money was printed out of thin air leading the world into another bubble. That’s actually one of the main reasons for the 2008 financial crisis. Wasn’t it the evidence that the fiat system failed once again? And wasn’t it marvelous that the Bitcoin whitepaper was published the same year, offering an alternate monetary system based on a deflationary asset with scarce reserves?
Indeed, the introduction of blockchain technology and its first use case, Bitcoin, paved the way for the major economic and social reconstruction of the world. Those in power tried to kill the tech for the past 13 years in an attempt to preserve the old world order, with them on the top. However, Bitcoin is safe and sound, with the total market capitalization reaching over $2.9 trillion at its peak in November 2021. The paradigm has shifted whether the old elite wants to accept it or not. Humanity is entering into a new age with a better monetary policy, social environment, labor conditions, etc.
Jax.Network plans to be at the forefront of this reorganization offering a stablecoin that can’t be manipulated or exploited in order to take advantage of the working people. Our JAX coins can be minted only as a post-product of burning Bitcoin and can’t be redeemed into BTC. Thus, it’s costly to print and, assuming that people are loss averse, they should not sell it at a lower price than the cost of its production. As a result, JAX reflects the actual physical labor and should be considered the primary option for paying out the wages.
The world has entered a new spiral of development, where a common man is finally given the freedom to manage their money, choose what currency to get paid in, and decide where to store it. We argue that JAX is the first stablecoin that reflects the effort put into earning it and all intelligent people should ask their employers to get paid in JAX rather than an inflationary dollar that has failed as a store of value several times in a row, leaving lots of people out on the streets.
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