Idea behind Smartcoins developed by Daniel Larimer, co-founder of Bitshares and Steem blockchains. Smartcoins were designed to mitigate cryptocurrency volatility To continue providing news and award winning journalism, we rely on advertising revenue. To continue reading, please turn off your ad blocker or whitelist us . Price-stable digital currencies have drifted in and out of the public eye since 2014 when a slew of "stablecoin" ideas attempted to merge the benefits of decentralised money with the purchasing power stability created by modern monetary policy. On paper, the concept is simple — a protocol to autonomously adjust the supply of a digital currency based on some metric for demand. This is to manage the coin’s value to prevent it from severe fluctuation or volatility. For digital currencies, price stability is an important obstacle to overcome, said Christoph Hering, CEO and co-founder of BitShares Munich, an independent blockchain development company. "Volatility is always good for traders," said Hering. "This is their life. Big swings is where they make their money. But regular consumers like you and me want to have stability. They want to have a medium of exchange." Bitcoin analyst Ramiro Burgos questions mankind’s ability to create a reliably autonomous method of money supply regulation, suggesting humans consistently fail at building systems that rely on manipulation-free market mechanisms. Burgos said: "Every time human leaders take control over economic or monetary decisions, all of those decisions go wrong eventually, even if they sound good and work at first. Human nature will always find a way to complicate every process and fail at every stage of human intervention." This includes systems that purportedly stabilise a currency’s purchasing power in a decentralised fashion. Hering’s company supports and employs the use of Bitshares’ Graphene blockchain, which, along with a proven 100,000 transaction-per-second capacity, allows […]
