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July 31, 2019, 10:22:02 AM |
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Bitcoin is a conventional cryptocurrency that trades at highly fluctuating rates, which renders its liquidity consistently unstable, resulting in it never becoming appealing as a unit of account. Stable coins, on the other hand, solve the aforementioned trust and stability problems as they peg their value to either an algorithm or a unit that keeps its value consistent (or both), therefore becoming much more attractive as stores of value or units of account, rather than mere vessels used for financial speculation and profit.Anchor is designed to preserve purchasing power and steadily enhance monetary value over time. Anchor is a stable financial ecosystem comprised of a stablecoin cryptocurrency and a non-flationary, algorithmic index. The index is based on the sustainable, upward trend of global economic growth measuring real world value using financial indicators such as the GDP of more than 190 countries, FX indicators of a basket of 16 currencies, and premium sovereign bond yields. Anchor’s tokenomics ecosystem is designed to be intrinsically stable with its algorithmic index called the Monetary Measurement Unit (MMU) and a safety-net of six stabilizing mechanisms, which includes a two-token, burn-mint model to ensure stability regardless of market recession, volatility, inflation, and other dynamic economic scenarios.
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