Crypto A.M. Shines its Spotlight on FreeMark: Inventing Better Money
Plunging exchange rates can cost exporters their shirts. Sterling versus the US dollar can vary sometimes 7% in a month, or 2% in a day. Businesses and individuals can lose big chunks of their profits—even make a loss. Exporters must therefore hedge transactions in order to survive in the global economy. With more and more firms attracted by the easier distribution to overseas markets, it’s vital that they are protected against very real foreign exchange risks that can cost even the most sophisticated firms hundreds of millions in lost revenue.
This is why FreeMark, a radical new and stable asset-backed cryptocurrency, is attracting considerable international interest among exporters large and small. FreeMark has been engineered to be a better global medium of exchange, providing risk reduction for every transaction—plus built-in inflation and deflation resistance.
Bitcoin was a great invention. It was followed by many other digital currency models built upon the same “blockchain”—a mix of spy-thriller, code-cracking technology called cryptography, and a dose of massively network-connected, peer-to-peer communications using the latest, fastest computer chips. It would not have worked without all three, plus a creative sparkle blended with libertarian rebelliousness.
This techno-concoction really set the public imagination on fire when loner tech geeks and grade-school students started becoming multi-millionaires. Now you can attend high-priced conferences with the cream of the £trillion financial industry.
There is a saying in the engineering world, “throw away the first design”. What it means is though while inspired, the first attempt at implementing a new idea does not always deliver what was hoped, but often brings hidden opportunities that unrelenting tinkerers ultimately discover. Otto Lilienthal’s 1896 death-by-glider “Manflight” became Wilbur and Orville Wright’s “powered airplane” in 1903, and the “let’s go to Mallorca for the weekend” jet flight of today.
The cryptocurrency industry has thus far been a shooting star. Today, cryptocurrency is a multi-billion industry spanning the globe. While nearly anyone you meet across the planet has heard of the dream, thus far digital currencies are not used by the mainstream. Less than 0.02% of global transactions occur in crypto.
Why? At the core of his project, the elusive “Satoshi Nakamoto”, who wrote the 2008 paper and early code that became the Bitcoin, was attempting to counter QE, or Quantitative Easing, that justified $15 trillion in fabricated money created by central banks since the financial crisis.
Inflation is synonymous with devaluation. The downside of unrestrained government money-printing is that money becomes less and less valuable. While this works for leveraged real estate investors, it destroys savers long-term plans by imposing an inflationary tax on their savings. In Argentina, families have lost their entire savings sometimes 3-times in one generation because of their government’s fiscal incontinence.
Nakamoto’s solution to this scary mass-printing, reminding us all of 1920s Germany, Zimbabwe or more recently Venezuela, was to limit the money supply to only 21 million Bitcoins.
But the problem of eroding value of money is not only caused by inflation of the money supply. In fact, the Bitcoin’s volatility has undermined its use as a currency. When last week Bitcoin dropped 12% in 24 hours, that was inflationary-style devaluation at its worst, even with a constant money-supply. In other words, the Bitcoin is more akin to the dangerous Manflight, not the comfortable, powered airliner of today.
The FreeMark was invented to solve this volatility problem. It is stable because it’s pegged to a basket of commodities. Since most goods are made of raw materials, and most raw materials are commodities, tying a currency’s value to commodities connects a medium of exchange to the physical world—a more scientific approach to wealth protection.
The novel asset-backing re-legitimizes money—most of the funds it is sold for are retained in a regulated, audited, professionally-managed fund. The sterling, euro or US dollar have 0% asset-backing since the early 1970s—floating currencies are historically recent
£The FreeMark challenges the baseless currency idea—learn more by visiting worldfree.com