If cryptocurrencies were more stable, would more people use them?
Nader Al-Naj, CEO and Co-Founder of Basis, believes price volatility is the biggest barrier to more widespread use, and his answer to this is Basis: a new cryptocurrency with an algorithmic central bank designed to keep the price of Basis stable and usable around the world.
Listen as Nader explains how Basis is different--and more scalable--than other stablecoins.
A Basket of Goods
Many stablecoins are said to be “pegged” to the US dollar, and Basis plans to start out with this as a guide also.
However, the long term goal with Basis is to create a cryptocurrency that maintains a stable purchasing power against a ‘Basket of Goods,’ or the everyday purchases of the average person.
If people are confident in the purchasing power of a currency over time, they are more likely to accept and use the currency for things such as structuring a loan or paying wages.
Why use Basis?
People with access to stable, conventional currencies might be perfectly content continuing to use those currencies.
However, those whose only available currencies are devaluing by 5-10% each year would benefit from access to a more stable currency.
Basis could also be used as a tool by crypto traders on exchanges as a way to keep their assets stable.
The ‘Holy Grail’ of Cryptocurrencies
Stablecoins are often called the ‘Holy Grail’ of cryptocurrencies, because they combine the benefits of a cryptocurrency--such as security and instantaneous, low-cost sending--with the stability of a traditional currency.
Basis gives anyone with an internet connection access to a stable currency.
Although there is still some work to be done to reach the long term goals of Basis, the future is promising. Basis has a brilliant team, expert advisors, and more funding than any other stablecoin to date.
- There are many benefits to cryptocurrencies, but the volatility may be a major friction to widespread adoption.
- Basis is a stablecoin project that uses an on-chain, algorithmic central bank to stabilize its price.
- The stablecoin market is becoming increasingly competitive with new projects emerging, but Basis has the most scalable model and is the most capitalized stablecoin project to date.