Bubble graph – showing the “crowd behavior
Geton is incorporating a new, scientific concept of sustainable business model of understanding & using cryptocurrencies in everyday life.
“J-curve” – logical development if the innovative business idea to reach global dimension – through a time & effect perspective
Supplies and their distribution
Cryptocurrency’s behavior depends on human nature, preferably expectations, emotional and also rational, but mainly on ““. It is true, Bitcoin has already achieved strong worldwide acceptance and use, whereas its stability still depends on the holder’s will. We already mention that people are buying cryptocurrencies because of 3 basic intentions (1. As an investment – buy and later sell per higher price; 2. As a transfer medium; 3. Trading on a short period). Regarding liquidity & price stability is a very simple premise – if and when the majority of holders will not sell per lower price like it is the current price, all newcomers will keep buying per that or even higher price – because the demand will be higher than is supply. In the case of Bitcoin, we can conclude: “When a big majority of Bitcoin (more than 90%) will be held by institutional or only a few holders, the minority of holders will have less and less possibility to lower the price because sellers will not anymore re-act to demands from buyers, which want to buy by a lower price than is current. Here appears the question of motivation and priorities which “big players” have regarding the Bitcoin revolution and opportunity.
Is majority of Bitcoin held by only a few holders or we can expect a repetition of economic bubbles?
What part of all Bitcoins are really in circulation, how many “losted” and how the “crowd” will understand the media?
Bitcoin historical chart (similarity with a bubble graph)
How the cryptocurrency’s supplies are managed inside Geton ecosystem?
To understand a cryptocurrency supply structure, we can relate on a CoinMarketCap approach and terminology:
- Max Supply – the best approximation of the maximum amount of coins that will ever exist in the lifetime of the cryptocurrency.
- Total Supply is the total amount of coins in existence right now, minus any coins that have been verifiably burned.
- Circulating Supply – the best approximation of the number of coins that are circulating in the market and in the general public’s hands.
When creating a cryptocurrency we can not and SHOULD not have in mind that we simply have created “own” currency and now the Global community will just buy it from us – it is naive, it is wrong and it must be avoided by implementing good working practices, related on particular principles and norms. Everyone who participates in this new era of understanding blockchain-based sustainability in a creative way needs to bring a solution and good working practices to so-create a new behavior culture that is so important for our common future and higher quality of life for all included.
Geton’s protocol for cryptocurrency supply distribution
At Geton, we set the following cryptocurrency supply distribution standards:
- When creating a cryptocurrency at Geton, it is obligate that a particular cryptocurrency is related (integrated) into a project of global dimension – a platform where users are using functionalities related to project nature (real-estate, freelancing, watching movies, buying products,…) through InstantBeta and the cryptocurrency maximum supply is flowing into circulating supply according to their actions – which contribute solely to project expanding, growth and acquiring market share.
- In the beginning, we set the Dynamic Price Modeling Concept for a particular cryptocurrency, related to the supported project which will operate in terms of InstantBeta. At that moment, according to the target cryptocurrency (and also project) market capitalization, we set the maximum supply and a final price to achieve a goal. Market capitalization is calculated by multiplying the actual cryptocurrency price with the actual circulating supply.
- Cryptocurrency is flowing from the maximum supply (we are calling it Business Development Supply -BDS) into circulating supply YUST and according to actions which users are doing inside InstantBeta platform – hence attraction and usability of that platform are creating intensity and volume of flow, of actual cryptocurrency usability and also market capitalization. If the InstantBeta platform is not attractive enough, the evolution of supportive cryptocurrency stops.
- Cryptocurrency holders and InstantBeta users are not alone in this process, because Geton Ecosystem is providing several additional tools to guide and support the development:
- Token Sale Practise Excercise (TSPE) is a unique tool, where cryptocurrency buyer creates a “buy” order but at the same time initiate “sell” order from its referral. When TSPE stake is completed, the buyer receives the purchase amount of stake value back plus has purchase value in cryptocurrency. According to the price change, based on DPMC algorithm, for the period of completing TSPE stake, the system deducts (buy-back) a proportional amount of staked cryptocurrency – to keep the initial value and transfer it into InstantBeta liquidity pool, from where the project is managing the development and liquidity. Actual cryptocurrency supplies are transparently presented on the cryptocurrency landing page.
- Cryptocurrency transfer out or into the Geton Ecosystem means that each registered user can transfer from/to any Ethereum based wallet, and at the same time solely manage amounts of cryptocurrency in his/her wallet – without Geton’s right to do it, because just the user has access and private key for own wallet – following the general practices and standards for such actions.
- Trading on global exchange(s) – we at Geton are working on global access and participation, hence doing our best to list hosted cryptocurrencies to more and more external exchanges, but also to provide global trading in our own, decentralized cryptocurrency exchange.
Now we can understand, that supply, especially circulating supply distribution is one of the most important and vital parts when using cryptocurrencies.
- At Geton, each unit of cryptocurrency starts circulating just upon community action on InstantBeta. We can not increase the volume “manually”.
- Further, and also important truth is, that the ecosystem is actually “buying” cryptocurrencies from holders (through TSPE stake), and by this limiting the circulating supply to keep its price and liquidity as much as possible stable, but at the same time releasing exactly such amount of cryptocurrency to circulating supply, like InstantBeta development stage is requesting.
Through these two measures, also intensive flow from the external market – where cryptocurrency has “by a rule” lower price than inside ecosystem, we are challenging InstantBeta team to provide more and more advanced solutions which are increasing the usability of supportive cryptocurrency.
All these measures are in the common world of cryptocurrencies not available (yet).