Extreme market volatility remains the single biggest problem facing cryptocurrency investors and traders. It is not uncommon for even the top cryptocurrencies by market size to plummet by over 50% in value – all in a matter of days, sometimes hours. In the recent episode, after Tesla Ceo Elon Musk backtracked on this decision to accept Bitcoin as payment, followed by China’s indiscriminate crackdown on Bitcoin mining, the price of the leading tokens tumbled. We saw how Bitcoin rallying around the $60,000 mark in April, was struggling to hold above $30,000 by the last week of May. The other top tokens mirrored Bitcoin’s price movement and so iit is important to have a stable system like the Gaugecash Index.
The so-called stable coins were also not an exception. That said, extreme market volatility is not surprising or new in the world of decentralized finance and digital assets. However, the promise to create a fully stable currency that offers the most secure hedge against volatility remains unfulfilled.
In this article, we bring to you a super-interesting project, GAUGECASH, that’s leveraging the best of the Defi protocols to create a successful native Gauge pricing index that propels the genesis of the world’s first most stable currency. Gaugecash is taking quantum leaps in terms of creating the world’s most stable decentralized value storage system that is more stable than conventional financial instruments including top fiat currencies like US dollars or Euros.
Throughout human history, we have witnessed different value storage systems before the advent of paper currencies that came into vogue after the creation of nation-states. The problem with the predecessors of paper currencies like Dollars and Euros was an indefinite or vague value proposition. One of the fundamental concepts that led to the creation of national paper currencies regulated by their respective governments was to create a highly stable value storage system and a fluid medium of exchange. The paper currencies did achieve the objective to a certain extent but not quite.
Fiat currencies are still not a fully stable asset class. Their vulnerabilities have been exposed time and again. The US dollars were worthless during the great depression, Argentinian Pesos have lost over 70% of their value in recent years, and the Venezuelan paper currency is on the verge of being worthless. Modern history is replete with how paper currencies have failed time and again. It is not only the common individual and retail investors who are at the receiving end but also institutional investors.
When Bitcoin promised to be a paperless peer-to-peer means of value storage and transfer, it did solve many of the problems with centralized fiat currencies. However, the problem of extreme market volatility remained. It is not that three haven’t been attempts to create a stable digital currency but those have demonstrated similar vulnerabilities. For example, the majority of so-called “stable coins” offering stability are pegged against US dollars. Absolute stability or most balanced value storage is impossible if a currency is simply pegged to another Fiat currency. It will naturally acquire the vulnerabilities of the Fiat currency it is pegged to. Any asset class that is to be the most balanced and accurate representation of value to demonstrate stability against even the most extreme volatile situations has to do more than just being edged to leading Fiat currencies.
The core idea of the Gaugecash decentralized monetary system is to financially empower the masses by offering a digital asset that offers unparalleled and unbreachable stability and the most accurate representation of value.
Now, the question is what does Gaugecash do differently than other stable coins or currencies to make sure it is a digital asset that is more stable than any other? Let’s get to the nitty-gritty of the world’s first most stable decentralized monetary system by understanding the Gaugecash ecosystem and its underlying technical architecture.
GaugeCash Index Representing Weighted Average Of 35 Fiat Currencies
The GAUGECASH decentralized monetary system is powered by native GAU tokens. The native tokens derive their value from a native GAU Index which represents an index of weighted averages from 35 fiat currencies. The advantage is subtle. Instead of deriving its value from one fiat currency which could be manipulated or witness swings depending on one country’s economy or a single government’s decision, GAU tokens derive value from a scientifically curated weighted average of 35 different fiat currencies. Naturally, it allows GAU to be the most accurate representation of value and highly stable. Moreover, the price movement is dependent on the global economy and not national or regional economies.
To create the ingenious GAUGECASH Index, GAUGECASH deploys many different dedicated APIs from top financial institutions and index providers of repute to compute the “basket’s weighted average index price.” It is this stable index that defines the native GAU tokens that powers GAUGECASH global peer-to-peer monetary system.
GaugeCash Index – How Is The GAU/USD Price Calculated?
The GAUGECASH INDEX provides a more accurate and the most stable “value.” To make the trade and exchange functional the tokens have to have an exchange value. For this, the GAUGECASH ecosystem leverages the world’s top oracle network Chainlink to access a GAU/USD decentralized price feed. The Chainlink integration once again ensures that the GAU/USD price feed is fair and cannot be manipulated.
With Chainlink, the GAUGECASH ecosystem benefits from the interoperability feature and can connect to various blockchains. Also, the credibility of Chainlink in the Defi world is second-to-none. Their “plug-n-play oracle solution that currently secures billions in USD value across Defi.”
Commenting on Chainlink’s integration the GAUGECASH team says they decided to choose Chainlink because of “its clear superiority in technology, security, and market dominance.”
Further, Gaugecash uses Chainlink’s built-in credential management capabilities, “enabling them to access premium, password-protected FOREX data used to generate our GAUGE index.” Also, a decentralized network of Chainlink’s Sybil-resistant oracle nodes secures GAUGECASH smart contracts against “downtime or data manipulation attacks resulting from a single oracle.”
True Value: Understanding Purchasing Power Parity
The true value of any currency, fiat or digital can be best explained by purchasing power parity. It differs from currency to currency and from country to country and even from industry to industry. GAU tokens have absolute purchasing power for the value they represent. This is because of the GAUGE Index which uses the weighted average of 30 different powerful currencies calculated using the indices from international financial organizations. Currently, the typical stablecoins are pegged against dollars. The purchasing power they represent is contaminated and it’s not just a price stability issue but also the value they represent can be manipulated.
Over time, because of the highest purchasing power and accurate value representation, GAU tokens will naturally acquire higher value against $USD when compared with the currencies that are simply pegged to a single currency.
“We didn’t want another Stable Coin targeting the “USD 1”. USD doesn’t mean stability de facto. CHF was the only currency in the 21st century gaining purchasing power (PP). Still, in 2015 the Swiss National Bank (SNB) abandoned its EUR/CHF unofficial floor at €1.20, bringing chaos across the currency markets”, said Manuel Blanco, GAUGECASH’s Founder.
The purchasing power of GAU tokens will drive their price and it could readily be adopted as a native Defi currency for the value and stability it will offer.
Shortcomings Of StableCoins Backed By Real-World Assets
The idea that backing a cryptocurrency with a real-world asset helps create a “stable digital asset class,” is far-fetched and inaccurate. The very reason we are using paper currencies today instead of other mediums of value storage or exchange is that the typical “real-world assets” don’t represent a stable or accurate value. That’s equally true for even the most sought after asset class like Gold and Silver. The stablecoins backed by real-world assets do provide a hedge against market volatility but they have their limitations. Gold or Silver don’t represent accurate value; especially with the fast-changing financial landscape.
Also, the prices of Gold and silver are themselves volatile, therefore, a digital asset that’s backed by real-world assets will face volatility issues regardless. As such the possibility of a stablecoin backed by real-world assets to be a global currency, for Defi in particular, seems impossible. However, it doesn’t mean stablecoins backed by real-world assets don’t have utility.
Why Invest In GaugeCash And Importance Of GaugeCash Index?
GAUGECASH is not just a typical cryptocurrency that facilitates peer-to-peer fund transfer. It belongs to a class of assets that’s both decentralized and offers stability unlike any other asset class be it the decentralized financial market or the conventional counterparts. If you’re a strategic investor looking to benefit from the world’s first most stable price protocol of GAUGECASH, here’re a few reasons why you must consider investing with GAUGECASH:
1. Financial Independence: We often think we are financially independent but regardless of your portfolio size, true financial independence is inconceivable until and unless your assets are independent of the choices of individual governments and centralized financial institutions. That’s right! Stockpiling currencies will have no value once high inflation sets in due to bad government decisions. Gaugecash paves the way for financial empowerment and independence from centralized institutions and brings a unique opportunity to invest in an asset whose value will only increase because of the full-proof stability and accurate purchasing power. It provides the strongest hedge against inflation and price manipulation by big corporations who are more than often hand in gloves with corrupt governments. Contemporarily we are all witness to what’s happening in countries like Venezuela, Argentina, Zimbabwe, Lebanon, Iran, Turkey … It is a long list.
2. Pure Purchasing Power To Drive Price: If you’re to put GAUGESCASH against any “stablecoin” or even fiat currencies for that matter, the value in terms of accuracy and purchasing power – none of them will be able to beat Gaugecash. The reason is simple, the GAUGECASH index is a more robust and inclusive and detailed representation as it factors 30 different currencies. Therefore, be it Tether, USDC, TUSD, etc. the value of GAU Tokens against US dollars will consistently rise and be more than the typical stable coins because of the purchasing power.
3. Go-to currency of The Defi World: It wouldn’t be an exaggeration to say that GAUGECASH has the true potential to become the Go-to currency of the world of decentralized finance riddled with inaccuracies and extremely volatile assets. Extreme market volatility has been the biggest concern of cryptocurrency investors globally. It also explains the limited mainstream adoption of Defi protocols. The need drives the demand for a truly stable asset class and GAUGECASH ticks all the boxes. It offers the highest purchasing power and is the most stable amongst other popular stablecoins.
4. Unparalleled Transparency And Highest Levels Of Security: GAUGECASH leverages Chainlink, which confirms the GAU/USD price feed is free from manipulation. The entire ecosystem is highly decentralized with additional layers of security to protect against hack attempts. Chainlink is a market leader and a trusted name. It is already driving Defi protocols worth billions.
Of all other innovative solutions, what the decentralized financial (Defi) markets need the most is clarity and stable investment options. In the Defi world, the biggest problem with the make-money-from-crypto mechanisms like Staking tokens on PoS blockchains, yield farming or liquidity mining is the price instability which effectively puts a big question mark on actual profits. The entire decentralized financial model is actively looking for a stablecoin solution. The attempts so far have been relieving but they have their limitations. GAUGECASH takes the challenge head-on and delivers the first and the most stable cryptocurrency that is better developed and positioned than any other crypto or fiat counterpart. The utility and value proposition offered by the GAU tokens are enticing. Chainlink integration ensures the security and scalability of the new monetary system. If you want to play safe, GAUGECASH is one Defi project you must watch out for!
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Hopefully, you have enjoyed today’s article. Thanks for reading! Have a fantastic day! Live from the Platinum Crypto Trading Floor.
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