The Current Problem with Cryptocurrency
With all the recent news about average joes becoming millionaires from investing in cryptocurrency, more and more people have become interested in taking a gamble as well. And that’s just the thing, investing in cryptocurrency is all a gamble right now as it is no where near stable. Seeing its constant fluctuation, a bitcoin that could have been worth hundreds yesterday could be worth next to nothing tomorrow. It’s too risky to use as an actual currency in the market and thus prevents it from being adopted by the masses.
Making Cryptocurrency Currency
Basis, a cryptocurrency startup by three Princeton graduates, seeks to create a stable cryptocurrency system for the world to use as real currency. As of right now, most cryptocurrencies have a set amount in circulation and cannot be manipulated to maintain a stable currency. Their goal is to use an algorithmic central bank to control inflation and deflation just like to real world to maintain a stable price. For example, when the central bank needs to expand the supply, it prints new money to put into circulation. Similarly, Basis will distribute more Basis coins into the market to expand the supply.
How Basis Will Help the World
Why fix something that isn’t broken, though? We already have a fully functional currency in the world so what’s the use in replacing it with something similar? The world may have a functional currency but not all countries have a stable currency, especially the developing countries where inflation still occurs at huge rates. With the help of Basis and providing internet to more areas in the world, cryptocurrency can replace the hyper-inflated local currency with a stable medium instead to help stabilize economies and help developing nations.
Basis has already raised $133 million from Bain Capital Ventures, Google Ventures, Stanley Druckenmiller, Kevin Warsh, Lightspeed, Foundation Capital, Andreessen Horowitz, Wing VC, NFX, Valor Capital, Zhenfund, INBlockchain, Ceyuan Ventures, Sky9 Capital, and more.