I think having a stable currency that people can spend in the marketplace without worrying that what they spent will be worth way more in the future is a game changer. The biggest flaw with bitcoin as a payment method is the fact that it promotes hoarding rather than spending. It’s a store of value. My question is how is a consumer going to purchase the marketplace currency? I feel like you would need to purchase it with a stable currency like fiat rather than bitcoin because if you purchase a stable currency with a appreciating asset, doesn’t that defeat the purpose of the stable currency?
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Interesting point!
My take on it is that the marketplace currency is intended to be stable and like most fiat currency, the more you have the more you can buy. Most fiat currencies don’t increase in value because of inflation and actually this reduces the purchasing power over time.
Not sure if there will be a finite number of the marketplace currency. If that is the case then it’s possible the marketplace currency would increase in value if people hoarded it and the supply diminished.
The marketplace currency can be obtained through mining, possibly purchased using fiat, and will also be obtained through market transactions and earned as a dividend by Safex holders.
In a sense, the marketplace currency itself will become the fiat currency for the marketplace.
While I expect the marketplace currency to be stable and not increase in its intrinsic value, the intrinsic value of Safex Coins will increase in value because holding Safex gives you voting rights and dividends based on all the buying and selling activity in the marketplace.
Daniel Dabek, the Chief Architect of Safex, explains these concepts in an interview with Altcoin Buzz that can be accessed from the link below:
Best Wishes!
As a Safex holder, I hope the marketplace currency (MPC) is infinite because we want to promote transactions, not accumulation.
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