Welcome to the Community
About the Coins
A Community Coin is and always will be worth one dollar. What makes it worth a dollar? Every coin minted is backed by an asset with a value verified in dollars. This is a unique situation because most all the money in the world, including other cryptocurrencies, are backed by confidence and IOUs, but not by assets.
When most people think of cryptocurrency, they think of a highly volatile investment vehicle with a risk factor similar to roulette or day trading. In other words, it’s not very useful as a medium of exchange for goods and services. So, many of the crypto coins such as Bitcoin or Ethereum aren’t commonly used for everyday transactions.
Did you ever think that money would “go out of style”? Cash has definitely gone out of style. Hardly anyone carries it anymore. You might hear someone say, they paid for their house with “cash”, but that doesn’t mean they showed up at the closing with a suitcase full of hundred dollar bills.
Who writes checks anymore or mails them? Everybody is using cards. Only 9% of retail transactions are cash these days and the majority of those are for less than $10. The rest use credit and debit cards which charge the retailer merchant fees, generally around 3-4%. Those fees get built into the pricing so the consumer ultimately pays for them. And then there’s credit card debt. According to Lending Tree, the average interest rate of the 220 most popular credit cards they monitor is over 24%.
What Happened to the Gold Standard?
The U.S. dollar was the last major world currency on the gold standard. It went off the standard in 1971 because there wasn’t enough gold to resolve trade deficits with other countries. The U.S. still holds 8,133 tonnes of gold reserves, more than any other country (Germany is 2nd with 3,351 tonnes) and that is currently valued at roughly $706 billion dollars. The total U.S. money supply, referred to as M1, is $18.3 trillion, more than 25 times the amount of gold in the U.S. reserves.
In fact, all the gold ever produced in the world amounts to around 187,000 tonnes (US Geological Survey) which still isn’t quite enough to back all the U.S. dollars in circulation. While the gold standard is no longer possible, the concept of backing money with a valuable asset is great, we just need to include more categories of assets. Real estate is valued globally at over $379 trillion (Savills) so there’s plenty of that. Add in cash, cars, boats, artwork, stocks and yes, even gold and we have plenty of assets to back all the money in the world. All we need is a place to put these assets.
What Makes Cryptocurrency Valuable?
What makes cryptocurrency valuable? Bitcoin, the original coin, uses a “proof of work” concept to establish its value. Bitcoin miners execute an advanced algorithm in order to “mine” a bitcoin. Initially, it was possible to do this with a personal computer but today, since the coins are so valuable, it’s a major operation. Individual miners can create a few dollars worth of bitcoin per day which may not pay for the energy needed to create it and so the real creation of bitcoin is done through large mining facilities burning up vast amounts of energy. New bitcoins now have a large carbon footprint as a result.
Etherium, which released its coin in 2015, started out using
the proof of work method but, because of the carbon footprint problem, changed to a method know as staking. Stakeholders, investors with a substantial stake of Etherium, will stake 32 ETH in order to be rewarded with 1 ETH, with the consensus of a panel of validators (other stakeholders) approving the transaction. While that sounds complicated, it’s basically a way to create a controlled number of coins with the oversight of established investors.
And then there are meme coins
These are coins that are not backed by anything and have no real value, they are mostly created for fun. Like baseball trading cards. If you were a kid in 1952 and you bought a piece of Topps bubble gum, you would get a piece of worthless cardboard along with the gum. If that cardboard had a picture of Mickey Mantle on it and you wrapped it in cellophane and set it aside for 70 years, you could have sold that worthless piece of cardboard for $12.6 million. Only because somebody was crazy enough to pay for it.
Dogecoin and Shiba Inu are meme coins that have reached respectable levels of market cap due to good PR. DOGE was a joke until Elon Musk posted about it and the value shot up. Because there is nothing establishing their value, what all meme coins have in common is volatility. They will never be mistaken for a serious medium of exchange. Their value comes from finding someone crazy enough to pay for it.
Which takes us back to the Community Coin. Because it is backed by assets, there will never be more coins than assets backing them. Since the assets are valued in dollars, the coins will be tied to the dollar. They can be relied on as valuable and they will be controlled by the individuals that back them with their assets.
Did You Say 12 Million Dollars?
How Would You Like to Own a Bank Vault?
When you join the community, you will get a personal vault where you can deposit tokenized representations of all your assets. A Non-Fungible Token (NFT) is a unique, encrypted file that contains all the information needed to define the actual asset: photos, legal description, serial number, value, outstanding loans, etc. This is the same exercise you used to go through to insure items or produce a balance sheet for a loan application. Now you can just show them your vault.
Placing an asset in your vault means taking the encrypted NFT and storing it on the blockchain. This makes it impossible to be modified without detection. The NFT is a representation of the asset. You can still live in your home or drive your car. Backing money with gold requires the gold to be placed in a physical vault, like Fort Knox and it just sits there. You could back Community Coins with a gold NFT and still have the use and enjoyment of your gold (whatever that looks like).
You will be issued vault coins for the value of your vault items. This is money. You can use it to pay off your loans and go interest free or invest it or just spend it on yourself. In essence, you have created this money just like banks do when they loan money. The difference is, you’re loaning your own money to yourself. The coins will need to be paid back if you sell the asset, so you might want to think about putting the coins to work for you to make more coins. We’ll have some productive ways to do that and help the community.
What Makes Community Coins Valuable?
Asset-Backed Value: Unlike meme coins, each Community Coin is backed by real-world assets and has stable foundation. Each Community Coin is worth 1 US dollar. A person can “mint” coins by placing a digital representation of an asset in their personal vault. While the asset is valued in dollars the coins issued are also worth a dollar each. To remove the asset from the vault, the coins must be paid back. Selling the asset requires repayment, keeping the number of coins the same as the amount of assets backing them.
Control by Asset Owners: Community Coins are controlled by those who back them with assets, there’s a clear governance model where asset holders have a vested interest in the coin’s stability and success.
Practical Use: With a value anchored in tangible assets, Community Coins serve practical purposes beyond speculation, including transactions, loans, or as collateral in financial agreements.