CryptoCredit Coins are created not through mining, or another form of artificial scarcity, but as credit.
When a Borrower wants to lend against an asset, and finds a sponsor posting the required margin.
This means that every CryptoCreditCoin, or ccoin, has an underlying asset posted as collateral on C3‘s ledger, giving it true intrinsic value.
Today the amount of money worldwide is distributed somewhat like this:
The central banks of the world have
created about 4.5 trillion USD in cash and coins, and another 24 trillion in narrow money.
But most of the money is actually debt. In the US, there is approximately 4.5 trillion of FED money,
but there are over 50 trillion USD that were created through debt, about 200 trillion worldwide.
Add to this the amount of derivatives and the figure will go up to 600 trillion or a lot more, since
nobody exactly knows how many derivates there are, or what every instrument is worth.
Most C2 fans sympathize with a libertarian view and many of the experts are friends of the Austrian school of economics.
They embrace cryptocurrencies because these are hard currencies, participation is completely voluntary, they are free from regulations and only subject to market forces.
Fans of the Austrian school of economics dislike credit money and can adduce good reasons for their opinion.
But we believe there is a new and better version of credit money that can be created with the help of blockchain technology.
a) CryptoCreditCoins (or ccoins) are always fully backed by assets.
b) Just the way banks create money when lending, backing it up with assets.
c) There are always just as many or as few C3s in the blockchain as there are assets posted as collateral.
d) C3s are „real“ in the truest sense of the world since they correlate to real world values.
e) C3‘s price will therefore stabilise as C3 grows, because the diversification of underlying assets will increase.
f) This leads to a truly stable cryptocurrency that can be used by business to express prices over longer periods.
g) CryptoCreditCoin is unlike centralised currencies. A truly democratic, fully autonomous organisation, it‘s decisions result from transparent, public votes and don‘t require a central authority to build or confirm trust.