The biggest barriers to the spread of adoption of cryptocurrencies worldwide have been affected by price volatility. Very few people today use cryptocurrencies in day to day life because they are slow and expensive to use. To solve the problem, Basecoin was introduced in the cryptocurrency industry. Basecoin is a robust, price-stable digital coin with an Algorithmic central bank. The Basecoin project is a project backed by Bain Capital Ventures, Pantera capital, digital currency Group, and Andreessen Horowitz among others.
Use cases of Basecoin
Being a price-stable cryptocurrency, Basecoin can be used in a variety of things and functions. Some of these functions include:
Developing markets: Many people living in developing countries do not take into consideration access to stable markets. However, people from developing countries suffer because the markets are not stable enough for the products and cryptocurrencies. Basecoin is in high demand in countries with a weak institution. It helps in developing the markets in these countries.
A low volatility crypto for traders: When there is turbulence in the cryptocurrency exchanges, many traders convert their digital currencies into fit cash like USD. Many exchanges are crypto-only exchanges and most traders and a price-stable cryptocurrency like Basecoin.
Credit and Debt Markets: Because of market Volatility, cryptocurrencies are becoming unsuitable even for financial contracts. By offering price stability, Basecoin enables capital markets to form on top of the Basecoin protocol. The project expects to increase the usage of cryptocurrencies. They want cryptocurrencies to be used for salaries, loans, options contracts, futures contracts and much more.
The broader blockchain economy: Due to the number of visionaries in the blockchain industry, the industry is experiencing an increase in the apps available. As the future of blockchain apps increases, a price-stable cryptocurrency is needed, which in this case is Basecoin.
Averting macroeconomic depressions: As the cryptocurrency technology is advancing to serve an advancing market, traders, user, and other institutions use Basecoin as a price-stable coin.
Basecoin implements price stability using economic principles that are relied upon by central banks worldwide. It uses Theory of Money ties long-run price levels to the supply and demand for money. It estimates changes in demand by monitoring the rate between its pegged assets and Basecoin and expands and contracts Basecoin token supply.
Basecoin founding team
The Basecoin founding team includes people like Nader Al-Naji, Josh Chen, and Lawrence Diao. Josh has played key roles in engineering and business at multiple startups. Lawrence has significant experience and software engineering, whereas Nader has a background in finance and software engineering.