Gaugecash, the next revolution after Bitcoin

The introduction of trustless, peer-to-peer transactions on the blockchain is a revolution that no-one should underestimate:

For the first time in monetary history value could be stored and transported without dependence on intermediaries in the digital space.

In this article I share my perception that The Bitcoin revolution laid the fundament for a new global monetary landscape, but at the same time that this fundament needs further development. Nowadays a multitude of financial services work on blockchain infrastructure. A plethora of attempts to create new blockchain currencies and assets were passed in review. I categorised them in my earlier article: “A New Era for Money: Decentralised Digital Stable Currencies (DDSCs) and Gaugecash”.

Gaugecash stands out as the answer to the gaps that the Bitcoin project leaves on the road to create a universal and global currency described in monetary economics. Gaugecash is hard money. The Austrian School of Economics often stresses the need for such hard money.

Gaugecash and Bitcoin share some powerful characteristics

• Both are decentralised. No centralised institution, such as a central bank, a government or a private corporation can influence them.
• Gaugecash and Bitcoin transactions are transparent and final. They are completely immune to manipulation.
• They are not dependent on centralised monetary policy. Both Gaugecash and Bitcoin govern themselves.
• The Gaugecash and Bitcoin design and systems are independent from specific persons, commercial companies or public institutions. Both are independent internet protocols without any third party risk.

Challenges for Bitcoin to become real money

The vision of (at least a part of) the Bitcoin community that BTC would become a world currency, seems to erode because of some inherent characteristics.

The Bitcoin value against traditional currencies (in which goods and services are priced) is volatile. Bitcoin users may need to hold their BTC for longer, in order to have the same or better purchasing power. This makes BTC less suitable as a currency.

• Some Bitcoin advocates counter this observation by stating that a wider adoption will limit volatility. While this may be true, it remains a fact that the Bitcoin value solely depends on supply and demand. Because of its limited supply Bitcoin is often named as “digital gold”.
• Also a stable value for Bitcoin depends on continued long-term support by its large holders, as these are in a position to actively manipulate the exchange rate.

The economic solution (trustless value storage and transport) is dependent on the technical solution (fixed to its own blockchain). This poses challenges to technological advancement. Some examples:

• Resilience against advancements in quantum computing requires hard forks and community consensus.
• The Bitcoin ecosystem is dependent on alternative (such as L2) solutions for transactional efficiency (speed and fees). Increasing layer complexity and scaling poses the risk of dilution of community awareness and adoption.
• The PoW system comes with significant energy consumption and environmental toll. This increases by growing adoption. That growing adoption may thus induce increased social resentment and regulatory barriers.
• Bitcoin’s design choice to limit programmability poses a risk to future technological advancement and integration with future financial systems.

Gaugecash: A Complementary Hard Money in a Diverse Financial Landscape

The financial landscape is vast and ever-evolving, and Gaugecash doesn't seek to replace existing assets like Bitcoin, but rather complements them. Both projects share revolutionary goals, but with distinct focuses. Gaugecash, as a self-sovereign "hard" money, aligns with the principles of the Austrian school of economics, offering a unique value proposition.

Expanding the Monetary Revolution

Building upon Bitcoin's foundation, Gaugecash introduces several key features:

• Untethered Stability: Gaugecash isn't a pegged stablecoin, but rather a hard currency whose value is determined by the Gaugecash Index, a basket of real-world assets. This approach ensures global availability and freedom from single-currency dependence.
• Transparency and Decentralisation: The $GAU token is fully formed by publicly viewable blockchain smart contracts, making Gaugecash an internet protocol, independent of any organisation or individual.
• Guaranteed Liquidity: Redeeming $GAU is always possible thanks to the built-in decentralised exchange within the wallet app. All transactions are transparent and blockchain-based, fostering trust and liquidity through use.
• Strong Purchasing Power: The Gaugecash Index provides a solid hedge against inflation and hyperinflation, outperforming traditional currencies. Its value can be traced back to 2002, and it objectively demonstrates its resilience against events like the Argentinian Peso's collapse or the CHF devaluation. It even offers better purchasing power than USD or EUR.
• Tech-Agnostic Resilience: Gaugecash leverages blockchain technology as its infrastructure, but isn't limited to a single chain. Currently running on Polygon for its speed and affordability, it can seamlessly integrate with other blockchains in the future. This agnostic approach ensures long-term continuity, adaptability and mitigates risks like quantum computing.

Gaugecash: A Global Force for Good

Gaugecash has ambitious goals:

• Enriching the monetary landscape: By offering the world's first decentralised hard currency, Gaugecash expands the spectrum of financial tools available.
• Empowering the underbanked: Gaugecash provides hard money access to individuals in regions with weak currencies, protecting them from inflation and offering financial inclusion opportunities.
• Inflation Protection: The Gaugecash Index objectively proves its superiority in safeguarding against inflation and hyperinflation compared to traditional currencies.
• Unit of Account Potential: Gaugecash aspires to become a unit of account for goods and services, facilitating global trade and commerce.
• Superior Inflation Hedge: Its stable and predictable face value positions Gaugecash as a compelling inflation and hyperinflation hedge.

The diverse array of Gaugecash Use Cases

Gaugecash's potential extends far beyond traditional financial applications:

• Financial inclusion: Bringing financial services to the underbanked. Because of the ease of use through the Gaugecash wallet, large groups of people that are now underserved can access reliable money.
• E-commerce: Facilitating secure and transparent online transactions. Pricing services and goods in Gaugecash offers immense oppotunities.
• Volatility Hedge: Protecting against market fluctuations. Businesses and corporations using Gaugecash have a powerful tool for risk hedging.
• Central Bank Reserves: Offering a neutral and stable reserve asset. Central Banks that have the desire to diversify their reserves, may use Gaugecash, because of its reliable and independent value anchor.
• Local Currency: Strengthening local economies in regions with weak currencies. Gaugecash supports even the smallest transaction amounts.
• International Trade: Enabling frictionless and (geo)politically neutral cross-border trade. Gaugecash supports large transactions with speed and low fees. Transactions may be local and international.
• And many more: The possibilities are endless!

In conclusion

Gaugecash isn't here to compete, but to collaborate. By offering a unique hard money proposition and a diverse range of use cases, Gaugecash complements existing financial tools and empowers individuals and communities worldwide.

The articles in this series:

1. A New Era for Money:?https://www.dhirubhai.net/pulse/new-era-money-decentralised-digital-stable-currencies-kai-pf%2525C3%2525A4hler-xkwme%3FtrackingId=tvxlouBqRmuK5w6N3m9mrw%253D%253D/?trackingId=tvxlouBqRmuK5w6N3m9mrw%3D%3D

2. Invest in the Future of Money with Gaugecash: https://www.dhirubhai.net/pulse/invest-future-money-gaugecash-worlds-first-monetary-kai-pf%2525C3%2525A4hler-bh0ge/?trackingId=TesvSTQSSNeeDWBjDsxfJg%3D%3D

3. Gaugecash, the next revolution after Bitcoin:?https://www.dhirubhai.net/pulse/gaugecash-next-revolution-after-bitcoin-kai-pf%2525C3%2525A4hler-8v1we/?trackingId=XRQS534JQgaQ6Z5pncTqyw%3D%3D

4. The Maze of Stablecoins Demystified:?https://www.dhirubhai.net/pulse/maze-stablecoins-demystified-kai-pf%C3%A4hler-8qxkf/?utm_source=share&utm_medium=member_ios&utm_campaign=share_via

Call to Action

1. Learn more about Gaugecash and join the community at https://www.gaugecash.org
2. Download the Gaugecash wallet app and experience the future of hard money: https://app.gaugecash.com
3. Share this article with your network and spark a conversation about monetary innovation.

We'd love to hear your feedback on Gaugecash. Share your thoughts and questions in the comments below.

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