Introducing BitCash Dollar

Stable Coins

Dai isn’t backed by the US Dollar. It is instead backed by collateral on the Maker platform. Now, there has been another group of projects that have sought to create a stable cryptocurrency that proposes a mix of standard market pricing and stable fiat value storage without an unsustainable asset backing. These projects are searching for the essential feature of intrinsically containing a mechanism that guarantees both dollar parity and stability.

Mint and Burn

BitCash Stable Feature

The BitCash Dollar account has its own address with “dollar@” in front of the nickname or address. So for e.g. dollar@CoachCryptos would send to the BitCash Dollar account and @CoachCryptos to the BitCash account. Also, there will be two send functions, one function to send from your BitCash account and one to send from your BitCash Dollar account.

  • BitCash → BitCash
  • BitCash → BitCash Dollar
  • BitCash Dollar → BitCash
  • BitCash Dollar → BitCash Dollar
  • BitCash Dollar = $1 USD.
BitCash Wallet in action

For example, as of 22 June 2019 the price per BitCash is $0.10, and on this day you send 5,000 BitCash to your BitCash Dollar account. At that time, you will immediately have 500 BitCash Dollars in your BitCash Dollar account with a value of US$500. You can keep the 500 BitCash Dollars for as long as you want, and the value will never change. Now assume the date is now 1 July 2019 and the price per BitCash coin has dropped to $0.05. If you were to then convert the BitCash Dollars (still worth US$500) into BitCash, you would get 10,000 BitCash. So, the amount in BitCash is now 10,000 instead of 5,000, but the value in BitCash Dollars is still US$500.

So, when you hold your money in a BitCash Dollar account, the value will always remain the same. Keep in mind, you can send the money from one BitCash Dollar account to another BitCash Dollar account. You can also make payments in BitCash Dollars directly and there will be no price risk for the merchant.

The benefits of BitCash Stable are groundbreaking. With this feature, you can send US$1,000 to someone across the globe and they would receive it in less than a minute with minimal fees, no conversion fees on each end, no middle man, no hefty transaction fees for both parties, and no having to wait days for funds to clear.

The BitCash Stable feature makes it feasible for an online merchant who may be interested in accepting cryptocurrency as a payment because they can now accept BitCash Dollar without having to sell instantly. Instead, hold the coins in their BitCash Dollar account until they’re ready to sell. This will help entice more online merchants to accept BitCash and/or BitCash Dollars.

How Will This Work?

There are 5 price servers that use a different private key to sign the prices. Each server has a dedicated webpage that holds a list of all price and timestamp information used to calculate the average price. Also, it will print the price read from each exchange with the name of the exchange, the price in satoshis and the price of BTC at that point in time. Currently, our servers read the prices from STEX and CryptoBridge and store them. Then they take a 7-day moving average from the prices and sign the price and timestamp with the private key. This signed price information is then returned as simple text information using the JSON format.

Every block header includes 3 different prices each signed with a different private key. Then the average of the two prices which are closest together is taken. This price is then taken to convert all transactions which are included in the block. So, if a transaction is included in a block then transaction is finalized, and the price will be fixed to the price stored in the block header. All transactions included in one block will use the same price.

Price Manipulation

There is some collateral damage that comes from using a 7-day moving average. At any given time, the price of BitCash Dollar may be slightly more or less than $1 USD because the price of BitCash will fluctuate over the course of a week. As the volume of BitCash increases we will decrease the length of the moving average because it will become harder to manipulate the price.

Decentralized vs Centralized

Our approach of allowing our servers to read the price information directly from STEX and CryptoBridge creates a bit more decentralization because the price is developed through the free market and supply and demand.

Ideally, BitCash hopes to be listed on at least 5 big exchanges and have high volume on each exchange. Then we would need all 5 exchanges to agree to provide signed price information directly. This way we could deactivate all our price servers, give a few private keys to the exchanges, and every single BitCash node could pull the latest price information directly from the exchanges. In this situation, no middleman will be needed. This is as decentralized as one can make such a system.

As a reminder, BitCash, as with most crypto, is a new and experimental protocol, so be cautious. There is no expectation of “profits” as this project is an experimental protocol. BitCash coins should not be considered as an investment in any way shape or form. BitCash software is open source and issued with no guarantees. By mining, trading, or acquiring BitCash by other means, you acknowledge that this is not an investment into a company or any such centralized entity.

We are excited to see what the future holds for BitCash and BitCash Dollar. Make sure you have downloaded the most recent wallet in preparation for our fork: https://www.choosebitcash.com/#download

BitCash Official Links:

Discord https://discordapp.com/invite/7P4YcXU

Twitter https://twitter.com/ChooseBitCash

Bitcointalk ANNhttps://bitcointalk.org/index.php?topic=5106123.0

Telegram https://t.me/chooseBitCash

Reddit https://www.reddit.com/r/BitCashCoin/

BitCash combines the power of block-chain with the features of banking to create the world's most useable cryptocurrency.

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