The Future of Monetary Economics for BCH?
Once the majority of Bitcoin Cash is in circulation and in the hands of holders. There would not be selling pressure from mining and exchanges.
Can’t we make an algorithm where we pool our savings trustlessly and essentially the program regulates the Bitcoin Cash supply to maintain a certain price. This way we can offer stability to merchants and have a monetary policy where for example 1% of BCH in that savings account gets freed to balance the price, and that same BCH can also be taken away from the market (to regulate supply and demand)
Eventually we choose our own monetary policy which will allow BCH to appreciate over time For example let’s say Bitcoin Cash is $1 Million, where 1 mBCH is $1. 5 years from there we can reintroduce coins into circulation and Bitcoin Cash price would be $1.1 Million because of the extra demand from consumers to buy those coins. It’s like setting a target for adoption which gets reflected in the price later. As an Economics student (not expert) looking into the future, I see this as the most probable future of monetary policy.
[link] [comments]