Judging by a recent John McAfee tweet, he is coming out with a new cryptocurrency – Freedom Coin. He announced it earlier today. McAfee claims that the new asset will have a unique paradigm and a new structural concept.
Explains the Problem
When visiting his new website, you can see a long abstract about the main intent behind creating such cryptocurrency. The website itself is very shy of information, yet delivers the message perfectly.
In the abstract, he claims that the average American doesn’t care about the price of an asset, in this case, the dollar. Consumers just want to exchange their money for valuable goods.
“Do you, before you buy, look up what dollars are worth in Euros or Yen before you can understand the prices? No. You inherently understand the value of a dollar in terms of what you know it can buy. You are habituated to value goods and services using the dollar as a reference point,” he writes.
The same applies for vendors. He goes on explaining that vendors don’t check an external measure in order to determine the price of their goods each day:
“The natural market for any item is constrained by what options a buyer may have – substitution, a competitor, a change of lifestyle or simply doing without.These are the conditions of an organic market. Measures outside of a specific currency realm have little meaning.”
A Coin Disconnected From Fiat Currencies
After determining the problem, he continues to clarify that the cryptocurrency world has long been hoping for an asset equivalent to the problem described above. That is – a cryptocurrency that people value for it’s purchasing power. McAfee explains that the main reason why this hasn’t yet happened is because customers cannot purchase everything they need with crypto. In order to pay with crypto, users have to exchange the currency to one that the vendor accepts for what they want.
“This leaves the value of the currency, not in the hands of the users and suppliers, but in the hands of a market whose mechanisms operate through fear, greed, manipulation and the vagaries of external economic conditions,” says John McAfee.
He thinks that we need a coin that is disconnected from fiat currencies and other cryptocurrencies. Hence a coin that has no cash-in value, but everyone accepts it universally.
The McAfee Freedom Coin
The new cryptocurrency, as informs McAfee, is designed to confront the problem of exchange which he described. He goes on explaining that the Freedom Coin will use a unique paradigm and a new structural concept. The asset will have no value, hence it will always be worth zero in relation to any other currency asset. However, at the same time, its natural market value will be free. Moreover, he says that this new cryptocurrency is nothing new and definitely isn’t a technological breakthrough. However, what makes it unique is the new approach to understanding the evolution of cryptocurrency “and the mechanisms that have kept the Holy Grail of cryptocurrency – economic freedom – out of reach.”
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