Topic: Retaining value during a bear market (Read 139 times)

Sorry, but I believe this idea to be impossible. You cannot control the price of a currency as everything is relative and investors trade on absolutely everything. The price will naturally fluctuate as that's how trading works. A seller sets a price, if demand is not fulfilled he lowers it until someone finally buys it. The other part of your idea where exchanges will have to reach a consensus is unethical as larger exchanges will have more strength in such a debate, which might mean that only these major exchanges will benefit from flatcoin, while the smaller exchanges will be left off to die. Additionally, if flatcoin is created what incentive is left for the holders of other cryptocurrencies to continue holding them? If everyone sells their bitcoin for flatcoin during bear markets, the price of the coins will crash leaving no point in investing in them afterward. Miners will stop mining these currencies as well because the value of a block will crash and won't be profitable considering all the expensive hardware and investments. Also, take into account the difficulty of mining some of these cryptos. Bitcoin, for example, lacks an algorithm that decreases the difficulty, meaning that a dump in mining will result in the death of usability for it as blocks won't be generated and no transactions will be confirmed.

TL,DR flatcoin will destroy the market if it is ever to exist.

So in the wake of this current bear market and tether's anguished reputation, I might've thought of a way to retain value when the market inevitably takes a dive: Flatcoin(I don't actually care what its called since I'm not a programmer and can't create it). Flat coin would be a cryptocurrency protocol with a mechanism that actively balances the total supply with the circulating supply to maintain a flat price. The Total supply would need be to huge and maybe even infinite(not a programmer, don't know ramifications of this) to accomodate all the value that might be stored within the space. So say someone buys X amount of units of flatcoin that was in the Circulating Supply. An automated protocol would then release X amount of flatcoins from the Total Supply to make sure that person's purchase didn't affect the price at all. This would work vice versa for someone selling X Flatcoin. So, essentially, you won't be buying or selling flatcoins from other people just from the reserve of Flatcoin. This guarantees the price is set and volatility won't ruin ones value when they have transferred to Flatcoin. Unlike Tether, this price won't be tethered to the usd but will be permenantly represented as a ratio to existing currencies based on a pre-determined unit of a currency that doesn't actually exist (Flatcoin). You read that right....Flatcoin isn't actually inteded to be a currency at all. Its simply a protocol that people invest in to seperate the value of their coins from the value of the whole cryptocurrency market as a whole. Just how bitcoin is a store of value more than it is currency, Flatcoin will be a mass agreement that flatcoin has value just based on the fact that people want to retain their value through bear markets. Of course, that value will never be reflected in the price. As a matter of fact, if Flatcoin works the way it is intended, its market cap would be 0 in bull markets and some ungodly huge number in bear markets. For best implementation, this protocol would have be self sufficient in balancing out supply AND maintained by a non-profit organization that wants to see a quicker adoption of crypto. Thoughts?