Here’s Why We Started Our Own Cryptocurrency

There’s a lot that, in our opinion, needs changing not only in the traditional financial system but in the cryptocurrency field as well. Let us explain why.

The financial system has to change

Our belief is that the current systems of banking and finances have run their course and were not built upon fair rules, to begin with. If you take a look at what has changed in the global economy in the past 200 years, the past decade has seen a huge influx in printing more money.

Why is that bad? Because the purchasing power of a currency is falling fast, things in shops are not getting more expensive, but the money in our wallets and bank accounts is losing value. This has created the situation in which people are discouraged to save up since, with every added digit, someone who is not investment-savvy will lose. Governments should protect our savings, but increasing the amount of currency leaves us with the same sums which are valued less

Should we all be investment-savvy? Perhaps, but not necessarily. What if there was a system that rendered these restrictive rules obsolete?

What needs changing?

Cryptocurrency has become a popular alternative since it addresses several problems of the current financial system, such as:

• The slow speed of transactions globally
• Hindering transaction rules (e.g. banks not exchanging during weekends)
• High transaction fees
• Poor accessibility and user-friendliness

Right now, anyone can have access to their e-wallet on their smart device without the need for a bank account. If one were to lose their device, their e-wallet remains safe. More and more systems are built with the user in mind, not the comforts of an institution.

The freedom of a cryptocurrency

The greatest benefit of cryptocurrency is that it cannot be just printed and increased out of thin air. The only way for that would be to have a currency reform and gather up all remaining cryptocurrency and replace it with a new one (kind of like how it happens in the Eurozone, when the Euro is officially adopted by a member country). This, however, can only be initiated by the users themselves, not an institution above. All cryptocurrency in everyone’s e-wallets can only be used by their specific users.

This freedom can come at a cost. We’re certain you’ve read on the news how all the more famous cryptocurrencies are nothing but a bubble. People do tend to see them as a way to get rich fast, which puts off a lot of merchants who would rather see a stable means of payment, than some cryptic currency that keeps on rising and falling.

No merchant wants to take the risk of accepting a currency that today is worth a 1000€ but drops down to a 100 the next day. Even the occasional 2000€ value is not enough to build trust. No person wants an unstable salary either, and while the occasional story about how some lucky person half-knowingly accepted a cryptocurrency payment and ended up a millionaire not too long ago can be encouraging, even the most open-minded experts can be skeptical.

The need for trust

And herein lies the more specific reason why we opted for a new cryptocurrency altogether. What keeps any currency stable is trust. Trust is a particular challenge with cryptocurrency since the user base currently tends to have a gambling mentality which can make their prices quite volatile. And volatility is the last thing you need, particularly with user bases that can even amount to millions.

Our goal is to start a new movement. Right now we have cryptocurrency experts that teach new users how to gamble. If it is seen as a commodity that can be bought cheaply and sold at a great price, it will never become a common currency. That is not to say that we are opposed to the increase in value, but it should not come at the cost of trust or by the old rules. That is why we wish to be different from the distribution that currently rules this field.

Read more: About Cryptocurrency, without Emotions

Originally published on our dagcoin.org webpage on February 7, 2018.