thetradingparrot
patreon
This coin may be used for every FIAT transaction: do you have some?
🕑 Added 2021-01-06 12:46:14 +0000 UTCFirst of all what is a closed payment loop?
It means that a coin can be used for payments without needing to be converted into FIAT.
What is FIAT?
Government issued currency, like for example USD.
There's an article about AnyHedge that went viral on weibo 1 day ago with 3 million views. you can find a nice translation here.
The original intended use of Bitcoin Cash and the dream of all its supporters is that one day it was going to become the new currency to make peer-to-peer payments globally but there's one problem that has been stoping this dream to become true: price volatility.
Although merchants are protected from price volatility by currently getting paid in FIAT every time they accept BCH as a payment (merchants can opt to receive FIAT, so they always get dollars or whichever is their local currency).
But actual normal consumers don't feel very encourage to hold BCH on their wallets for day to day payments. Even a 10% volatility would make it prohibitive. No one wants to wake up in the morning and realise 30% of your salary is down.
So here's the big news. They are introducing AnyHedge, a technology that hedges the amount of BCH in FIAT for consumers, while allows speculator users to profit or lose from the fluctuations. A win-win contract.
This technology is being tried this year on some wallets and making much more likely that BCH would actually become widely adopted as a payment system.
Before AnyHedge, the only chance to deal with price volatility was for BCH to grow its market cap to higher than gold. But now there's a potential workaround.
With all the downsides and current risks of holding stable coins, AnyHedge makes BCH very bullish in 2021.
AnyHedge can help BCH increase its market cap. BCH wants to go for the market cap of Gold. If the hypothesis is correct the upside is limitless we are talking about trillions. I think the risk reward matches my tests :)
My holding of BCH is currently 4.48%, 647 USD. I'm keen to increase this in the following days by 500USD.
You can use the following links to start your own research and confirm the information.
Original article in weibo (you can open it on chrome browser and enable translation too)
