💲Stablecoin Issues

Stablecoins come in different flavours with varying risks. BCCX does away with every single one of the issues outlined here!

Non 1:1 reserve stablecoins

Coins such as USDT have had questionable reserves in the past and even with increased disclosures in the recent years, there maybe issues around mark-to-market gain/losses on some of the commerical paper or bonds underlying the reserves.

BCCX will hold all tokenized gold & silver in a 1:1 backing

1:1 verified reserve stablecoins

USDC improved the transparency with 1:1 backing in USD held in the banking system. Unfortunately this means holding USDC is no different to holding USD in the fiat banking system. Leaving you with the same credit and inflationary risks. This issue was highlighted during the March 2023 banking crisis when USDC briefly lost its peg until the BTFP facility was announced.

BCCX tokenized gold will be held 1:1 in institutional grade vaults avoiding any banking system issues

Flatcoins

Flatcoins are an emerging token economics concept in which the token of interest, as a store of value, would adjust its valuation over time to track changes in inflation.

Stablecoins are simpler assets that directly peg to assets like the US dollar, which makes their stable value easier to understand and assess. By contrast, flatcoins aim to track and peg to purchasing power through historical data such as inflation reports that might not always be accurate.

BCCX tokenized gold is real physical allocated gold, an asset with a 5000 year track record of being a perennial hedge! No reliance on inflation reports needed!

Algorithmic stablecoins

Depending on the underlying design algorithmic stable coins maybe subject to severe devaluation risk (convexity) and may be prone to speculative attacks in case of under-collateralization. The implosion of UST and the Terra project have proven that algorithmic stablecoins are not to be trusted yet.

BCCX tokenized gold avoids any algorithmic shenanigans choosing a simple 1:1 peg for the precious metals system