Basecoin, a stablecoin cryptocurrency, proposes to maintain a stable value through an algorithm that adjusts the supply of the coin. It’s similar to BitShares, which attempted the same strategy but failed due to lack of adoption. Basecoin’s success depends on its ability to convince people to use it, not just its technical feasibility.
The Basecoin system is complex, involving bonds, tokens, and an oracle to determine the price of Basecoin. It’s not clear how this system will work in practice, as it relies on the market to determine the price of the bonds and tokens. The system also assumes that people will always want to buy Basecoin, which is not guaranteed.
Critics argue that Basecoin is a Ponzi scheme, as it requires constant growth to maintain its value. Others point out that it’s attempting to reinvent central banking, a system that’s been refined over centuries. The idea of a stablecoin is attractive, but it’s unclear whether Basecoin can overcome the challenges that have doomed previous attempts.
Basecoin’s creators are optimistic, but the crypto community remains sceptical. The success of Basecoin will depend on its ability to convince people to use it, and to navigate the complex economic and regulatory challenges it faces.
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