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Introduction
We believe the largest obstacle to the mass adoption of cryptocurrencies is price volatility. Cryptocurrencies, unlike fiat currencies, do not have a central bank to implement monetary policy focused on stabilizing purchasing power. Thus, changes in demand induce massive price fluctuations. The decentralized model to price discovery has made the majority of existing cryptocurrencies nothing more than stocks or commodities, valued on psychology, traded on unregulated stock markets, and susceptible to manipulation. The lack of price stability has prevented credit and debt markets from forming because volatility incurs a premium. While
the rest of the industry focuses on transaction throughput and smart contracts, we focus on solving price stability to realize the economic capabilities that the blockchain enables.
Bushido is a new class of digital currency that does not match with existing coins or stablecoins. It is not a fully free-traded token, and it does not meet the standard definition of a stablecoin, either. Bushido’s nominal value is steady but does experience “effective” price fluctuations due to its freely traded ecosystem token, Bushido. The nominal value is supported through its predicted price progression as well as the ecosystem of applications that use DAR as their currency. Through these methods, Bushido (BSD) addresses the volatility and price fluctuations experienced by first-generation virtual currencies such as Bitcoin and Ethereum, without being dependent on an underlying asset such as the USD or gold. By eliminating the dependency on the stability of other assets, BSD is markedly different from any other
digital asset that has so far been launched.
Broader Blockchain Economy
Numerous blockchain thought leaders believe that the ecosystem of blockchain apps is on the horizon. From a decentralized ridesharing app to e-commerce projects, existing centralized services will be replaced by their decentralized counterparts. When these projects arrive, each will come with its own token, creating the need for a universal token to enable interchange between them. It’s expected that the universal token will auto-convert in and out of native tokens as transactions take place, in real-time, at market rates. This is similar to using a debit card while travelling in a foreign country. You don’t think about it, but each time you swipe your card, a conversion is happening between your native currency and the currency of the country you are in. When these apps arrive, it’s important that there is a price-stable currency for them to build around. Your bus ticket tomorrow can’t cost $1 today and $35 tomorrow. Volatility has prevented Bitcoin from standing in as a viable store of value. If you believe that blockchain apps will build the next global economy, you may also see that a price-stable currency will be needed to facilitate exchange.
