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Gaugecash – The world’s first Decentralized Monetary System.

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GAUGECASH is the world’s first Decentralized Monetary System that will be available to anyone anywhere. Unlike most prominent stablecoins that peg the price and value of the asset 1:1 to the USD, the Gaugecash protocol derives its price and value from decentralized financial systems, elegantly solving the centralization risk that a USD peg represents. 

The protocol consists of 2 tokens, GAUGECASH(GAU), which is an index of world currencies, that as a whole is more stable than any single fiat currency including the majors(GBP, EUR, USD, JPY), and GAUGEFIELD(GAUF) the protocol’s liquidity token that backs up the GAU. 

GAUGECASH aims to empower users to make stable payments on-chain or store value while hedging against the volatility risks of any single fiat currency. GAUGECASH’s backup and price Index mitigates centralization risks and was designed for users looking for alternatives to current prominent fiat pegged stable cryptocurrencies.

What are the challenges of the traditional monetary system?

Traditional financial systems rely on central authorities that dictate economic policy based on the fiduciary trust that society places in them. In a perfect world, central bank authorities act in good faith and design policies that factor in the complexities behind the economy to the best of their ability.

But the reality is that these central authorities face several challenges during policy decision-making, such as the irrationality of economic agents, foreign and domestic government policies, and the trustworthiness of data required for policy decision-making. For this article’s purpose, we will concentrate on one factor: reliability and value of the data used for policy decision-making. 

An important thing to consider is that most of the economic data from which central authorities derive policy are not provided to them in real-time; the data is always out of phase. The consequence of this is that they never have a “real picture” of the economy and make decisions based on outdated data.

These decisions take a long time to make the desired impact on the economy. In the end, they can only make approximations, or one could argue almost educated guesses and with this data model the economy and dictate policy. 

Factors behind the time rate of data collection and the time it takes for the policies to produce the desired results can be attributed to outdated technologies used by central trusted authorities and society, such as cash, traditional accounting methods & the numerous authorized agents that comprise the system.

Most of these factors can be significantly mitigated or eradicated with a transition towards better technologies. Still, there is one factor that cannot be mitigated, the model’s reliance on trust. This factor will always be a flaw that can be exploited by corrupt, negligent, irresponsible, or, to put it bluntly: fallible agents.

Monetary policy as rent extraction and wealth erosion.

“By this means(fractional reserve banking) government may secretly and unobserved, confiscate the wealth of the people, and not one man in a million will detect the theft”

                                                              -John Maynard Keynes, 20th-century economist.

Through globalization, the modern international monetary system has been extremely successful in bringing prosperity and overall raising standards of living across the globe. Nonetheless, the flaws of the central bank model have been gamed continuously throughout history.

The boom/bust cycles some policies generate in the economy have always been exploited by actors who, whether by design or opportunity, corrupt the system by instituting a rent extracting model of wealth erosion and transfer that stagnates innovation and creates vicious impoverishment cycles.

A significant number of cases can be mentioned, going back all the way to England around 1750 when property rights enabled land to be used as collateral for projects. This was an important step that significantly fueled growth.

Still, it can be argued that through time and monetary policy, sudden spikes in the interest rate generated defaults on payments and hard asset forfeiture in favor of a privileged few. This pattern repeats itself throughout history, with the most recent case being the 2008 crisis. 

Why is Gaugecash the first decentralized monetary system?

GAUGECASH brings two innovations in Financial History.

       A) GAUGECASH INDEX

            The GAU/USD price will be given by GAUGECASH’s INDEX

  1. The price is more stable than any other currency in the world, including Gold. We define stability as the average change against the currency pair itself in any given period.
  2. The index not pertaining to any Central Bank has obvious advantages for regulation purposes and Decentralization.
  3. It will be more expensive than any other currency against the USD; this has a positive purchase power effect.
  4. It contains information on WorldWide Monetary Policy.
  5. If any currency suffers from hyperinflation or unexpected volatility like the one provoked by the Central Bank of Switzerland with CHF in 2015, the math innovations implemented in this new kind of Weighted Average make the Index more stable with respects to all other currencies including Gold and Silver at that instant in time.
  6. The free service for obtaining GAUGECASH will be given for free on our website in a simple User Interface.
  7. The GAU/USD  is being integrated by chain.link and our team and will be public by Summer 2021.
  8. You will be able to compare the historical behavior of the Index against all its competitors.

B) We have backed up the value of the GAUGECASH (GAUs) by the blockchain class in itself, taking advantage of its economic scarcity property. 

We will not dive deep into this theoretical economics innovation as it requires specialized economic and mathematical knowledge but we can summarize it like this.

GAUGECASH demand from the Scarce liquidity Pool GAUGEFIELD can be modeled as a Nash equilibrium in Bayesian Games.

We will make it simple going forward using the transparency and immutable properties of the blockchain tech in itself so DEFI investors can track the Value and Liquidity of the Development.

What is Chainlink and why is Gaugecash integrated with Chainlink? 

GAUGECASH has integrated market-leading oracle network Chainlink to access a GAU/USD decentralized price feed. The Chainlink-powered GAU/USD Price Feed will ensure that the Gauge Index is priced against USD at fair market value and without possible tampering.

Chainlink’s market-leading oracle networks provide us with a proven plug-n-play oracle solution that currently secures billions in USD value across DeFi. Chainlink being the new oracle solution for GAU/USD is a critical element to our design in bringing off-chain FOREX market data into blockchain ecosystems.

Although initially launched on Ethereum, the GAUGECASH system is fundamentally blockchain agnostic, thus we require an oracle like Chainlink that supports various other blockchain environments. 

We chose Chainlink because of its clear superiority in technology, security, and market dominance. Some of the Chainlink Price Feed features that add significant value to GAUGECASH include:

  • Chainlink oracles have built-in credential management capabilities, enabling them to access premium, password-protected FOREX data used to generate our GAUGE index.
  • Chainlink uses a decentralized network of Sybil-resistant oracle nodes, securing our smart contracts against downtime or data manipulation attacks resulting from a single oracle.
  • Chainlink offers transparent visualizations of the oracle network’s performance, allowing users to independently verify they are getting fair market exchange rates.

An example of the Chainlink ETH/USD Price Feed showing a transparent visualization of oracle network activity.

“GAUGECASH is bringing a new monetary decentralized system, empowering users to make stable payments on-chain or store value while hedging against the volatility risks of any single fiat currency,” said GAUGECASH Founder Manuel E. Blanco. “Chainlink will provide us with time-tested oracle infrastructure to ensure that users relying on GAU are always receiving fair market exchange rates when utilizing them for pricing goods and services around the globe.”

About Chainlink

Chainlink is the most widely used and secure way to power universally connected smart contracts. With Chainlink, developers can connect any blockchain with high-quality data sources from other blockchains as well as real-world data.

Managed by a global, decentralized community of hundreds of thousands of people, Chainlink is introducing a fairer model for contracts. Its network currently secures billions of dollars in value for smart contracts across the decentralized finance (DeFi), insurance and gaming ecosystems, among others.

Conclusion

In the last century-plus, there have been around thirty “Non-Domestic Currency Debt Crisis (typically inflationary deleveraging) “, causing millions of people to lose their wealth and transactional value. 

Within the crypto-space, the solution has been pegging tokens to the USD which doesn’t solve the problem of Decentralization and long-term stability of the Asset.

Solution: We have come with the First Decentralized Monetary System Available to anyone anywhere, and we have named it, GAUGECASH. It has two main components

  • We have created an Index coming from the Final Market Making of the Forex Market that is more stable than any other currency in the world including Gold and Silver. 
  • We have backed up the value of the GAUGECASH by the blockchain class in itself, taking advantage of its economic scarcity property.

This creates a self-reinforcing economic system that brings unbelievable value for Investors and Users in a Decentralized and Immutable Fashion.

This can be one of the most profitable ventures for investors around the world, just because we can compete for the first time in history with a DEFI Solution with the largest financial market in the world, the EUR/USD who transact 6 Trillion USD per day.

Disclaimer: This is a paid post and should not be treated as news/advice. 

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://ambcrypto.com/gaugecash-the-worlds-first-decentralized-monetary-system

Blockchain

“Bad For Bitcoin”: Congressman Warren Davidson Blasts Last-Minute Crypto Tax Insertion In Infrastructure Bill

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Biden's Tax Plan Could be Bullish for Ethereum but Bearish for Bitcoin

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As the U.S. Senate plans to hold a popular vote on the proposed infrastructure bill under which a last-minute cryptocurrency tax law was introduced, some believe that the whole bill is ill-fitted due to its vagueness and could prove colossal to the industry and by large, the U.S. economy.

Privacy Concerns

The law, which seeks to subject players in the crypto space to the same regulatory rules placed on various securities such as stocks has disgruntled some industry players as well as legislators who feel that its language is detrimental to the crypto industry. In essence, the government aims at individuals and institutions not only reporting on gains and losses but also any activity associated with crypto, such as the sale of mining equipment.

Congressman Warren Davidson who coined the cryptocurrency language in the proposed infrastructure bill as “the big bank protection act” particularly believes that if passed, it could spell adverse problems on a big chunk of crypto-related activities that might not even need to be taxed. 

The congressman who is an ardent supporter of bitcoin speaking to Bitcoin magazine added that he was not a fan of governments spying on virtually all individual activities with one’s money, especially using the 16th amendment.

“The government just seeks to know too much about you. It really is not the government’s business as to whether you got paid or you ended up paying somebody, did you buy or sell something, gain or lose money – this extends that logic way beyond just collecting taxes, it collects all kinds of information.”  

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Sloppy Language

Davidson further criticized the language in the 16th amendment now inserted to serve in taxing crypto-related activities, terming it as sloppy, dangerous, and must have been advanced by people who were ignorant about the cryptocurrency industry or by people intending to only destroy it.

“Either this language was skilfully crafted to completely new crypto in America or it was willfully ignorant, I mean you would have to work hard to be that ignorant about how much collateral damage this kind of sloppy language would cause ” he added.

He called on Bitcoiners to raise their voices to their senators on the colossal harm the proposed bill could cause to them, and for the country as it threatened not only financial stability but also innovation.

Jerry Brito, the executive director of Coincentre had also raised alarm over the proposed infrastructure bill seeing that it has a provision that could be very bad for crypto, forcing non-custodial actors including miners to comply with IRS tax reporting obligations. He echoed Davidson’s concerns over the broadness in wording which potentially covers miners and DEXs. 

He was however relieved at the fact that arguably miners and DEXs did not have “customers” as defined in the tax code. He posited that despite the last-minute addition to a must-pass bill, he and other stakeholders were working around the clock to make sure that the bill was not passed in its current form ahead of Wednesday’s vote.

Portman spokesperson however sought to clarify the language on crypto in the infrastructure bill stating that the language did not redefine digital assets or cryptocurrency as security for tax purposes.

“It simply clarifies that any person or entity acting as a broker by facilitating trades for clients and receiving cash must comply with a standard information reporting obligation.” he said.

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Source: https://zycrypto.com/bad-for-bitcoin-congressman-warren-davidson-blasts-last-minute-crypto-tax-insertion-in-infrastructure-bill/

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Ethereum: Are you wrong to expect ‘changes’ from London

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Ethereum is days away from one of the most important system upgrades since its inception. The London hard fork, the implementation of EIP-1559, is expected to completely change the monetary and economic model of Ether and its network.

These changes are expected to take place after the commencement of the hard fork on 4 August. However, there have been other changes too, each of which has transpired over time for the altcoin.

The issue of transaction fees

One of the most discussed changes expected out of EIP-1559 is that ETH’s transaction fees will become relatively stable. Any entity wanting to conduct a transaction on the Ethereum network is required to pay a “gas fee.” The same is to be paid in Ether, to miners, to process these transactions. During the 2020-2021 bull run, these fees skyrocketed.

Source: Ycharts

In fact, according to the attached chart, the transaction fee was as high as $71 at one point. However, that aspect might end up being tackled before the hard fork itself.

Over the past few weeks, the gas fees for ETH transactions have drastically dropped on the charts. Now, many have suggested that this was due to the bearish market.

Source: Spencer Noon

However, a contradictory argument is that DeFi applications are still rampant. UNI and AAVE registered strong on-chain performances over the past few weeks, and major functionality within these assets rely on the utility of Ether. For both June and July, the Ethereum network’s fees were already under the yearly average. Such a healthy fee market allows for a stronger security budget for Ethereum.

Investment and trading are not the only ways to profit from Ethereum anymore

ETH held on Exchanges

Source: Glassnode

A common bullish argument for Ethereum in 2020-2021 was the fact that it registered massive exchange outflows. Here, the inference was that hodlers were taking the asset out of centralized platforms and simply holding their allocation. It might have been true in late 2019 and early 2020, but right now, the playing field has evolved.

According to data, exchange outflows have definitely increased but the key point remains that more and more Ethereum is flowing into smart contracts. Further, ETH users are pursuing other opportunities to earn interest and yields.

The rise of yield farming and interest lending platforms has opened new avenues for ETH users. The reason being that they are able to earn capital without depending too much on a bullish or bearish cycle.

Changes are coming but, “change” is already here

The industry is evolving at a break-neck speed and Ethereum is gunning towards its massive upgrade. And yet, users should not be expecting ground-breaking changes. In fact, those who are might as well be ‘wrong’ to some extent.

Over the past few weeks, Ethereum has already been incorporating changes that may define its functionality and usage going forward.

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Source: https://ambcrypto.com/ethereum-are-you-wrong-to-expect-changes-from-london

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Bitcoin Cash, Cosmos, VeChain Price Analysis: 01 August

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With Bitcoin soaring up to $42,000 today, other altcoins pumped too. BCH was preparing to test its immediate resistance, ATOM hiked by 8% overnight, and VET flashed signs of an uptrend. 

Bitcoin Cash

Bitcoin Cash, Cosmos and VeChain Price Analysis: August 1

BCH/USD, TradingView

Bitcoin Cash was trading at $554 on the back of a 2.1% gain over the last 24 hours. From the 4-hour chart, BCH depicted an upward movement towards its immediate resistance of $566. On failing to test the same, the prices could land near the $544 mark and then subsequently rest on $528. 

The Relative Strength Index despite noting a slight fall in buying pressure stayed well within the bullish territory. The green signal bars on the Awesome Oscillator depicted the presence of the bulls in the market.

Conversely, however, the MACD flashed red bars on the histogram at press time after a bearish crossover yesterday, although it was declining in size marking a reversal of the bearish sentiment on the indicator. 

Cosmos (ATOM)

Bitcoin Cash, Cosmos and VeChain Price Analysis: August 1

ATOM/USD, TradingView

ATOM displayed a considerable hike of almost 8% within a day. It alt was priced at $12.88 at press time. If it continued moving on the upside, the token might cross the immediate price ceiling of $12.96. 

If ATOM reaches the $12.96 mark over the upcoming trading sessions, it could expect strong resistance at $13.60. If the coin dips below its current price level, the support region lies at $12.00 and then eventually at $11.53. 

Overall technical outlook of ATOM remained quite bullish with the Relative Strength Index spotted above 60 despite a minor fall. Awesome Oscillator showed amplified green signals bars validating the same. 

Bollinger Bands widened suggesting chances of market volatility as prices kept touching the upper band. 

VeChain (VET)

Bitcoin Cash, Cosmos and VeChain Price Analysis: August 1

VET/USD, TradingView

VET had seen a period of consolidation a few days back, however, it rebounded from that and registered steady gains over the last few days. VET’s price at press time stood at $0.0913 as it recorded a 5.2% gain overnight. 

The technical analysis chart showed that VET witnessed a bullish trade, with the Relative Strength Index touching the overbought zone just 24 hours ago. At press time, however, the indicator fell below the overbought territory.

Chaikin Money Flow, over the last few days, registered increased capital inflows and was pictured in the bullish zone despite the minor fall in capital inflows at press time. 

Bollinger Bands opened up in anticipation of increased market volatility. With prices touching the upper band, the bulls might push the prices higher. The immediate resistance for VET lay at $0.93, failing to test that, the support region awaited at $0.0870 and then at $0.801.

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Source: https://ambcrypto.com/bitcoin-cash-cosmos-vechain-price-analysis-1-august

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