A recent article by Anatoly Knyazev goes straight to the heart of the matter for the X8 project. We could hardly have produced a better historical introduction to the X8currency. The author points out that the famous Austrian liberal economist Friedrich von Hayek opined that the biggest headwind a currency might face is volatility. Of course no holder sees the appreciation of his altcoins as a problem, but what goes up can always go down. The perennial threat and reality of inflation is another problem addressed by X8currency. To efficiently hedge against inflation capital must be continuously reallocated. The X8 project is not about value gains (and consequently value losses), as this field already provides a host of speculative instruments. X8currency tackles the problem of value preservation and has no intention to appeal to speculators and token dumpers. It will appeal to the risk-averse and everyone who dislikes inflation. And we believe there are a great many of them.
MANY ATTEMPTS AT SOLVING ONE PROBLEM
We have already written a comparison of X8C with some other tokens and also with arguably still the most popular token crypto traders resort to in downswings — the USDT. Von Hayek envisioned many different “private currencies” pegged to different commodities competing for the consumer’s wallet. Since stability is a universally recognized problem in the crypto world many projects have emerged recently under the banner of ensuring stability. Different solutions have been proposed but we can say with confidence that our particular niche is not getting crowded. In fact we stand in it alone for the reasons stated below.
VON HAYEK AND X8C
To quote from the article: “The egg of Columbus, in my opinion, is to connect a coin to a fund that holds a range of basic assets like national currencies and other commodities.” The author goes on to claim that the pegging mechanism has to be revolutionized. The reserves backing the token must be audited by an independent agent. Here X8C gets a big check. The holdings will be audited and monitored by JP Fund SA which will also transfer all data on the blockchain. Additionally, a special audit will be performed on request for a fee. Another issue the author mentions is legislative support. Here again X8C gets a check. The X8 team has been working hard to make the whole enterprise legally compliant.
Unlike any other token X8C is backed by an active basket. ARM (Automatic Reserve Management) AI allocates its holdings continuously amongst 8 currencies (USD, GBP, EUR, JPY, AUD, CAD, CHF, NZD) and gold. There is no human factor involved. No central planning and no room for any arbitrary manoeuvres. No board of directors and no group of fund managers will ever need to sit together and fix the ratio of the currencies in the basket. This is why only those currencies that are 100% convertible into each other have been accepted into this basket. The system responds to any kind of market movements and volatility boosts its ability to fight inflation. That is the gist of having a system — no situation should blindside you. Every contingency is covered. ARM AI is brought down only when the grid comes down altogether, with every other electrical device. A descriptive ARM AI whitepaper is available on our site.