Unlike most other crypto-currencies, Crypto Bullion has already completed its volatile monetary base expansion stage and has settled in to its maximum target of 2% expansion per year.
To qualify for interest, an investor must keep their funds unspent in their wallets for a minimum of 1 hour at which point they become eligible to earn greater than 2% compounded interest annually on their Crypto Bullion. Due to Crypto Bullion’s novel PoSP algorithm, the interest reward is variable based on the actual level of network securing participation (staking and minting) at any particular time and is designed to reallocate the reward from non-participating entities (not staking and minting) to those participants who are more deserving for providing the service of securing the network.
Now that the baseline monetary inflation rate has been reached after a year of fair distribution, the annual inflation target of 2% is locked in. There is no better time for the serious investor to get involved and claim a stake in this unique digital asset.
It is important that we conduct our due diligence before allocating capital to ensure that we are both on the right side of a trade, and that we are supporting only those projects which deserve the capital.
One thing that will strike the new investor is the sheer number of different crypto-currencies to choose from. The market is still new, and most of these have not been created with sound economic and social fundamentals. When we step back and look at the whole picture, we see a rivalry between miners, who complete difficult calculations to generate new coins, and investors, who are buying coins on the market based on perceived potential. A third unseen player in the market is the scammer. Since there is real capital involved, and due to the anonymous nature of crypto-currencies and the internet itself, these people are known to coordinate pump-n-dump scams and will even create new digital currencies just for this purpose. It is important, as investors, that we conduct our due diligence before allocating capital to ensure that we are both on the right side of a trade, and that we are supporting only those projects which deserve the capital. For a better understanding, see the Market Fundamentals section.
Capital flows can be understood when we realize that there are many different reasons to hold a crypto-currency. They can be held to spend, held to save, held to invest, and used to move funds from one person, place, or market to another. It is important to know this, because predicting changes in demand is how an investor can generate a return. Crypto Bullion functions well for saving because of its low inflation rate, and the interest that can be earned by holding it. The value of Crypto Bullion is not determined by how many markets it can directly trade to, nor by how many businesses and individuals will accept and hold it for spending, but from its fundamentals which allow it to serve as a more stable store of wealth. For live and historic price data on Crypto Bullion, see the Charts and Data section.