Six years ago, in an ordinary dormitory at Princeton University, was a Computer hard at Work, a work that was then still quite unusual: Bitcoin Mining.
Thanks to the low Mining difficulty, Nader Al-Naji was during his time in Princeton in the position to develop 22 bitcoin with his CPU alone.
Half a decade later, and Nadar is the founder and CEO of Intangible Labs, an organization is working in which he and several other brilliant Software engineers to Bitcoin’s Antithesis Basis.
The Base Of The Stablecoin
The crypto-currency, which was once as Basecoin known, was designed to run what to run, tried Bitcoin once, with a notable difference: the price of The currency will remain at $1 to continue to increase over time or decrease.
Earlier this week, Bain Capital, and Andreessen Horowitz announced that the two of them together $133 million USD are investing in a Basis, to Finance the development of the currency.
The base is also referred to as the “Stablecoin”, because the value of the currency “is an algorithm tied to a fixed value, and thereby the number of existing units on the basis of the demand will be adjusted”.
In other words, Basecoin a Central Bank will be very similar and new of coins generating when demand is greater than supply, in order to keep the value of the coin is constant.
Bitcoin, on the other hand, on the other hand, experienced strong volatility in the last few months. While BTC saw last year a growth of around 2000% to an all-time High of $19.800, it experienced this year has been a downward trend in the beginning of February, reaching a Low of $6.141 and since then hesitant again moved upward.
“Our Thesis is that the volatility of crypto currencies is a big Problem for mass Adoption is,” explains Al-Naji in an Interview with Fortune. “If you look at Bitcoin and other major cryptocurrencies, then you have to realize that while these have a certain value from Speculation, you would never want to be salary or a loan in these currencies.”
Base – the antidote to volatility
With the base we no longer have to worry about that the value is increasing after using for a purchase or that the value decreases after the receipt of the salary. This creates the incentive for the basic user, the crypto-currency to actually spend, instead of hoarding them.
“Every time I spend a little Bitcoin, get a small heart attack,” Al-Naji, and speaks to it from the classic Hodler Dilemma. The fear of money today for a Sandwich, which could buy in a couple of years ago, a Ferrari, is real.
“I think that the fact that the value is stable and not expected to rise, which makes it as a medium of exchange a lot more useful.”