BSoV: The Minable and Deflationary Token
The year 2020 exposed many of the negative aspects of the current financial construct which the world relies on. On 4/9/2020, the Federal Reserve announced that they would inject another $2,300,000,000,000 (2.3 Trillion, you read that right) into the U.S. economy. With the threat of Covid-19 essentially shutting down the daily operations of the economy overnight, something HAD to be done, right? Were there any other options? Many people are expecting a $1,200 stimulus check to cushion the pockets of people affected by the mass layoffs and market collapses. I myself asked a simple question, "What are the long term consequences of diluting the market with the USD?"
This question is one that should be asked over, and over, and over by every single person who receives a paycheck from their employer or government regardless of where you reside in the world. The U.S. dollar is the dominant monetary force in the global economy, and it dictates much of the value of all things being bought, sold, and utilized in said economy. It is common and public knowledge that the dollar has been subject to inflation: in 1913, the same $100 you had then would only have the purchasing power of a about $26 today. One could expect, in theory, that this number will diminish even more because of the drastic amount of USD injection occuring because of this pandemic. Most people cant afford basic necessities because of this ridiculous level of inflation caused at the hands of the Fed.
As many of you know, Satoshi Nakamoto had a response to this type of stimulus and bailout system the Federal Reserve has created and enlisted at any opportunity to respond to a crisis. It was called Bitcoin, and today it has become a financial power to be reckoned with. It has brought governments to terms with the fact that their systems are not efficient, along with putting power back into the peoples hands when it comes to controlling and utilizing their own money. There are no restrictions on how much Bitcoin you can send. There are no restrictions on whom you can send it to, and there are no ways to hide whom you've sent it to using blockchain technology and cryptography to secure its network and create a database of all transactions. The creation of Bitcoin was an answer to many of the problems with the financial system.
On June 17th, 2019, a person under the pseudonym "Mundo" also tried to provide an answer to some of these problems with a laser focus on inflation. The solution he proposed (we have not seen the long term benefits, so the solution is not quite yet an answer) is BSoV, or BitcoinSoV (Bitcoin Store of Value). BSoV is an ERC20 token which utilizes the EIP918 protocol first utilized by a similar token called 0xBTC. EIP918 allows both BSoV and 0xBTC to be minable on the Ethereum blockhain via a smart contract. Following the same distribution model, consensus mechanism, and total supply of Bitcoin (Fair Start, meaning no ICO, Premine, or developers fees; Mined using PoW, specifically Solidity SHA3; 21,000,000 total supply, 3.6 million mined thus far, divisible to 8 decimal points, with the same amount of halving eras as BTC) BSoV differs in one very different way: a 1% transaction burn built into its code.
With BSoV, every transaction is subject to a mandatory 1% transaction burn when a transaction is sent and confirmed on the Ethereum blockchain. The deflationary mechanism is the solution that Mundo proposed as an answer to the inflation the peoples money is exposed to because of the negligent actions of the Fed. This inflation is created out of the control of the people, and their purchasing power is diminished. With BSoV, the deflationary aspect is out of there control, but the end result is the opposite; an increase in its value due to scarcity and exchange of resources from its consensus mechanism. (This is a great scholarly article which details how mining provides a bottom value to PoW coins/tokens due to resource exchange, ie. Computing power, electricity, etc. https://www.sciencedirec
It's important to note that the project has not been around long enough to see its end goal or vision come to fruition. This is precisely why I am writing this article. More is needed to help study and analyze if this is the answer to this problem. What I can say is that this is one of the few real potential answers that have been proposed, created and implemented to try and combat the Fed. With mass adoption, can we have a true store of value solution that protects itself from the self burdening negligence of the powers that be? Do we have to keep loaning our money to banks to invest for free, only for them to need a bailout every 10-20 years due to poor monetary management and investing sprees? An immutable smart contract that cannot be 51% attacked or controlled by those in power might be worth pursuing.
I'd like to end this article on a more transparent note about myself and my involvement with the project to help shed light on any apparent bias or misconceptions that some may have about my intentions here. I am one of 927 current holders and community members. I mined plenty of BSoV after I joined the telegram group and got involved on July 4th, 2019. I have never been paid for my work here, and it is strictly something that I believe in and want to help shed light on to those who might be interested in what the project has to offer. Just like many of the cryptocurrency enthusiast on the on P2P mailing list in 2009, many of us are working together tirelessly to bring one of the few tokens with integrity, transparency and ethics to those who want to experiment and see what may happen.
Something that I have also asked my self is "Whats the worst that can happen?" when it comes to my involvement here.
If the worst is a little time wasted on something I believed in, I will sleep fine at night. But if I am so fortunate to be apart of something that could truly change lives and alter the never-ending downtrend of inflation which has made life so difficult for the average human being, I will have a better nights sleep than I could have ever imagined.
Thank you for your time. I wish all of you health, wealth, and safety during this difficult time.
(You can find out more @ BSoV.io)
Note: all content are copied from the original sourch: https://www.reddit.com/r/BitcoinSoV/comments/g3gotz/bsov_the_minable_and_deflationary_token/?utm_medium=android_app&utm_source=share