🏛️Asset-backed Currency Issues

There are a number of issues with traditional monetary metals that BCCX is solving.

Yield

Possibly the biggest issue that diminshes the attractiveness of gold & silver relative to fiat and other assets is the lack of a yield.

In fact, typically monetary metals bear a negative carry cost in the form of storage fees!

Due to this, other alternatives are generally deemed more attractive such as an interest bearing bank deposit, dividend paying stocks or yield bearing bonds.

BCCX employs innovative incentive based mechanisms to change the very nature of gold & silver and turns them into yield bearing monetary metals!

BCCX empowers you to own your physical allocated tokenized gold bullion, get paid a YIELD on your bullion AND rewards you for owning, saving, spending your gold & silver - all with zero storage fee!

This paper covers the yield mechanisms in greater detail later.

Gresham's Law of Money

Gresham's law states that "bad money drives out good money" because people will spend the less valuable stuff first to hold onto the more valuable stuff. This typically happens when two currencies or forms of payment are legally accepted at the same value, even if one is clearly worse off than the other.

Think of it like two types of candy bars: one wrapped in gold foil and another in dull paper. If both cost the same, you'd probably save the gold one for later and hand out the boring one first. That's Gresham's law playing out.

However, BCCX use incentives and benefits to flip this dynamic. Instead of the "bad" stuff pushing out the "good," BCCX encourages holding and using its stable currency by offering rewards and advantages for doing so. This makes the "good" money even more attractive, pushing the "bad" stuff (like volatile or inflationary currencies) to the sidelines.

It's similar to what happens during hyperinflation, where people ditch the rapidly devaluing local currency for anything else that holds its value. But in BCCX's case, it's not a desperate scramble for anything stable, it's a deliberate choice because the system itself makes the good money more appealing.

BCCX is re-inventing the very nature of gold itself. When gold & silver become more rewarding to use and save as currency than fiat, Gresham's law is reversed!

Security

For any asset backed crypto currency, safety and security of the underlying asset or commodity is paramount. There have in the past been instances of fraud and theft and it shatters investor confidence in the space.

BCCX yield bearing tokenized gold and silver are backed 1:1 with allocated physical gold & silver. All bullion will have a verified audit trail with regular independent audits and verification.

Liquidity

Certain types of asset backed cryptocurrencies would be challenged by design when it comes to the liquidity both in the token and the underlying. For instance, if there were a real estate or farmland backed token it highly limits the liquidity that can be achieved. This is because every piece of real estate is unique and investors have their own location preferences.

BCCX tokenized gold & silver are the same as owning actual bullion which are some of the most liquid physical assets in the world.