Despite emerging revolutions, the world’s economy is suffering through a critical period where from crypto to fiat and banking systems, everything has failed to deliver the expected results. The fiat money, itself a challenge as governments rule it for their own sake and cryptocurrencies are unable to fulfill their promises.
The government regulates and holds fiat money, and it may lose its value or collapse, becoming worthless, during inflation and hyperinflation periods. Further, a country’s fiat currency is vulnerable to many outer elements, such as international oil prices, USD, etc. The instability of these factors severely impacts the value of fiat currency and exchange rates.
Likewise, the banking system, on which our entire business depends these days, also suffers from several issues and challenges. You have to pay heavy taxes and fees on your each transaction affecting your net income wholly. The possibility of human error is also inevitable during the process. Moreover, traditional banking systems are highly insecure and prone to security and hacking attacks putting your income at risk.
According to a research report of Intsights, 25.7% of malware attacks struck banks and financial services, and the rate was quite higher than attacks on any other industry. Similarly, the report also observed a massive spike in compromised credit cards and leaked credentials. In short, it highlighted the failures of the financial system and demanded something better and more secure than it, i.e., blockchain based currency or cryptocurrency.
Cryptocurrency that first rolled out in 2009 with the emergence of Bitcoin aimed at providing solutions to the problems of banks and traditional exchanges. It had to offer a highly secured payment and currency system diminishing the role of government or central authority in currency regulation. It is also known as digital currency, or a virtual currency uses cryptographic protocols for secure transactions. It makes transaction simpler and swift, costing a negligible transaction fee as compared to traditional financial services. Its organic nature is the fascinating feature making it immune to the government’s interference.
Despite full attention, the media gave to crypto its market share is miniature – $800 billion as compared to fiat money whose market share is $28 trillion. However, the fact is crypto is still growing. Thousands of cryptocurrencies have emerged within ten years of the launch of the first cryptocurrency. They eliminate the intervene of any third-party such as banks from the transaction process or financial services. Moreover, they use public and private security keys for this purpose.
Originally derived to address issues people faced due to traditional systems, cryptocurrency itself has strongly been criticized for several loopholes. It is notorious for its price fluctuation, volatility, and security. To avert the problems with traditional currency and cryptocurrency, it also passed through several evolutionary phases in the following manner.
Bitcoin BTC is the first-ever decentralized currency coin launched. It was the straight replacement of fiat and plastic currency. Satoshi Nakamoto launched it in 2009. It first-time came up with the idea of blockchain technology, to provide security against inflation to give control of money in the hands of people rather than the government.
Later, LTC, ETH, ZEC, rolled out as an alternative of BTC replacing the money. Working on the same principles as BTC, they lag behind it that makes half of total crypto market share. However, most of these currency coins could not get acceptance more than an investment purpose due to the basic flaw of volatility.
Emerged right after altcoins assuring the buyer that they can use them in exchange for products. They are alternatively also known as app coins or user coins. ICO companies launch utility tokens for fundraising purpose to the community, which it can use in exchange of products that the company offers. Their value depends on the supply and demand factors. Unlike altcoins, they are not a good option for investment purposes. You cannot use them for mining, too. GNT and FUN are prominent utility tokens which are tradeable at several exchanges.
Working on the principle of traditional principles of shares, equity or security at stock exchanges, security tokens offer dividend to the token holders. In the crypto market, people also know them as equity tokens or equity coins. They provide secure investment with the growth of potential; however, the problem is you can lose the total investment in case of loss. Another major concern pertaining to security tokens is that they have also deviated from their promise of liquidity.
The innovation continued to improve the cryptocurrency world, providing a more secure, stable, and fungible solution. Asset-backed coin show a new ray of hope to the international crypto market. It is backed by a proportion of real-world’s tangible or intangible assets such as gold, oil, and silver determining the value of the coin. In this way, such coins offer security against loss or massive fluctuation until the value of the asset falls. SGC asset-backed coin is 60% gold-backed coin that is highly secure, diminishing the risk of loss or devaluation.
Hybrid cryptocurrency is something combining the properties of previous crypto coins giving an epic solution. This innovation of the future combines the stability and security of asset-backed coin as well as allows you to utilize them for payments and exchanges. SGC asset-backed coin is also a hybrid coin that you can integrate with your debit card and can also use it for investment purpose.
Earlier, volatility, price instability, and complications with usage have remained significant hurdles in the way of crypto adoption. However, SGC hybrid coin will avert the situation and will take crypto adoption one step ahead by solving the major problems.
Aversion of Risk:
It consists of two parts, i.e., 40% utility and 60% gold whereas both of them are independent of each other. It means that if one part gets affected, it will not risk the token/coin holder wholly. Instead, the risk will be diversified as he has invested in two different assets.
The asset-backed property of SGC hybrid coin enhances its liquidity, making it a highly capable of trade at exchanges. Furthermore, it ensures instant traceability providing ease to those who do not aspire for long-term lock-in.
Its asset-backed property and recognition at exchanges will make it globally available and fungible increasing its usability. Further, you can use it for payments, gifting, currency exchange, and can also integrate with your debit cards to pay for your shopping and utility bills.
These properties of hybrid cryptocurrency will make it worth enough to optimally tackle the challenges cryptocurrency market is facing at this moment. It’s the future, leading the world to a feasible decentralized and efficient solution both for payments and investments.