8.1. Detailed analysis of indicators
Indicators:
1. Limited Emission
The limited emission of DeflationCoin, Bitcoin, and Gold provides protection against inflation, as their supply cannot be increased, unlike the Dollar and Ethereum, where supply can grow due to monetary policy or token issuance systems. Limited supply makes assets like DeflationCoin, Bitcoin, and Gold reliable for long-term value preservation while simultaneously increasing their worth.
2. Presence of Deflation
DeflationCoin possesses systematic deflation, which significantly distinguishes it from other assets. Unlike Bitcoin, where deflation occurs randomly due to lost wallet access and is not part of the network's mechanism, DeflationCoin offers a structured approach to reducing supply. Ethereum has a built-in deflationary element related to fee burning, but it has only a minor impact, creating no significant value for users. Meanwhile, Gold and the Dollar lack deflationary properties entirely: Gold's supply constantly grows due to mining, although limited by planetary resources, and the Dollar suffers from inflation due to continuous issuance. Thanks to its embedded deflationary parameters, the value of DeflationCoin is higher than all other assets mentioned above.
3. Presence of an Economy Generating Income
Bitcoin lacks any internal economy, with its demand relying entirely on speculative greed and the hope that a less informed buyer will purchase the asset at a higher price. In contrast, Ethereum has a basic economy, including DeFi, DAO, and NFTs; however, these technologies are complex and remain confined to the crypto space without widespread application in daily life. Moreover, Ethereum's economy has faced significant scalability issues and high fees, limiting its future growth. DeflationCoin's economy, on the other hand, focuses on end users and is diversified across various online domains, always aiming at a broad audience. Gold, while primarily used for speculative purposes, has minor applications in the jewelry industry, aviation, chemistry, medicine, and decoration, adding functional value. The Dollar’s economy remains the most extensive and diversified globally, ensuring its stability and integration into all sectors worldwide.
4. Presence of Dividends
A key feature of DeflationCoin is its unique dividend system, allowing long-term holders to receive regular income. Ethereum has a staking rewards mechanism; however, since Ether remains an inflationary asset, these payouts are financed by additional token issuance, effectively diminishing their significance. Gold and Bitcoin, on the other hand, have no dividends and are primarily used for speculative purposes. The Dollar also lacks dividends for its holders; however, through bank deposits, its owners can earn interest, which can be considered an equivalent to dividends.
5. Buyback and Burning System
DeflationCoin is the only asset among those listed in the table that focuses on a deflationary economy. It features a mechanism for continuous buybacks and burning of its coins, which boosts demand for tokens and accelerates price growth. All other assets in the table lack such a mechanism, making them non-deflationary and significantly less valuable compared to DeflationCoin.
6. Efficient Emission Allocation for Long-Term Development
In Bitcoin, all investor contributions are spent on meaningless mining, which consumes enormous resources but does not create cash flows for improving or developing its economy. Ethereum also faces significant challenges: in its early stages, 85% of tokens were distributed to investors at extremely low prices, causing a long-term imbalance. Due to these mistakes, Ethereum must resort to additional token issuance to attract new investments, negatively affecting their value and limiting future growth potential. Among these cryptocurrencies, DeflationCoin has the most well-thought-out distribution system, ensuring long-term "fuel" for development for decades.
7. Absence of Financial Pyramid Signs
DeflationCoin lacks any financial pyramid signs because it has a diversified economy targeting various online domains, ensuring the asset's sustainable value. Bitcoin, by contrast, exhibits all the key features of a financial pyramid. Its value is maintained solely by speculative demand and the "greater fool" game: each investor hopes to sell the asset at a higher price to another, less informed buyer. The Dollar also shows certain pyramid-like characteristics at the level of government bonds, which rely on continuously attracting new loans to cover growing national debt. Ethereum, despite having a basic economy (DeFi, NFT, DAO), largely mirrors Bitcoin's speculative nature: it is primarily purchased out of greed and the hope of price growth rather than for the real utility of its technologies. Moreover, Ethereum remains technologically limited and cumbersome, restricting its broader application. Gold, thanks to its physical value and industrial applications, shows no signs of being a financial pyramid. However, its price is largely determined by speculative demand, making it vulnerable to market fluctuations.
8. Impossibility of Default
Default is only possible in systems that rely on credit, as it arises when a debtor fails to meet obligations to creditors. The DeflationCoin economy is entirely based on attracting investments rather than loans, making default fundamentally impossible in this system. The same principle applies to Bitcoin, Ethereum, and Gold, which do not rely on debt obligations and ensure stable value. In contrast, the Dollar is at risk of devaluation because the U.S. economy is dependent on an enormous national debt exceeding $30 trillion. History offers numerous examples of defaults, including Argentina (2001), Russia (1998), Greece (2015), and others. Countries' inability to service their debts has led to severe economic crises and a loss of trust in their national currencies.
9. Resistance to Sudden Price Drops
Thanks to built-in mechanisms like Smart Staking and Smooth Unlock, DeflationCoin is protected against the risk of sudden and significant price drops, as these technologies ensure controlled liquidity and limit the ability to instantly sell large volumes of coins. While Bitcoin has repeatedly lost more than 90% of its value, and Ethereum has similarly shown significant corrections, DeflationCoin maintains stability and avoids correlation with them due to its unique mechanisms. Gold, despite its high liquidity, is also prone to price drops: in 1975, its price fell by 50% following the abolition of the gold standard. Moreover, if central banks begin favoring DeflationCoin over Gold for reserves, the latter could lose up to 90% of its value. As for the Dollar, its status as a reserve currency is threatened by the massive U.S. national debt. The fate of the British Pound serves as a reminder: before the Dollar, it was the global reserve currency but lost this status after World War II, leading to significant devaluation.
10. Protection From Confiscation
One of the key advantages of cryptocurrencies like DeflationCoin, Bitcoin, and Ethereum is the impossibility of confiscation without access to the owner's private key. This is ensured by the decentralized nature of blockchain technology and cryptographic protection. In contrast, Gold and Dollars can be seized by government authorities, frozen in bank accounts, or physically confiscated. History provides examples of mass Gold confiscation, such as in 1933 in the U.S., when President Roosevelt issued an executive order mandating the surrender of Gold coins and bars. Dollars are also subject to control and freezes as part of international sanctions or economic policy. Amid global instability, cryptocurrencies offer a unique level of financial freedom and protection against coercive actions by third parties.
11. Voluntary Public Recognition of the Asset
The demand for cryptocurrencies is based solely on people's voluntary desire to own them, making them free from external control and imposition. The open-source nature of cryptocurrencies further strengthens trust, as it allows anyone to verify their transparency and security. The demand for Gold is also voluntary, rooted in centuries of cultural use as a symbol of wealth and a store of value, without any imposition or control by governments. In contrast, the Dollar maintains its dominance solely due to the U.S. military power and policies aimed at preserving its status as the global reserve currency, including interventions and wars in various regions of the world.
12. Ease of Transportation
Cryptocurrencies are extremely convenient for transportation: they can be instantly transferred from anywhere in the world to another location with internet access. Gold, on the other hand, is highly inconvenient to transport, especially in large volumes: it is heavy and requires significant logistical costs, security, and insurance, making the movement of this asset a complex and expensive process. The Dollar also faces transportation challenges, particularly in large volumes and across jurisdictions: transfers can take days, and international transactions are subject to restrictions and checks by financial institutions, significantly complicating and slowing the process.
13. Lack of Environmental Issues
DeflationCoin and Ethereum are among the most environmentally friendly assets due to their energy-efficient consensus mechanisms. Their network maintenance requires minimal electricity, making them sustainable and safe for the environment. In contrast, Bitcoin mining, which uses the energy-intensive Proof-of-Work algorithm, results in emissions comparable to those of an entire country, such as Argentina, consuming over 120 TWh of electricity annually. Gold also has a significant negative impact on the environment: its extraction involves large-scale destruction of natural landscapes, annual usage of over 200,000 tons of water, and emissions of about 30 tons of mercury and 140 million tons of carbon dioxide. However, the most environmentally harmful asset remains the Dollar, as its dominance is maintained through the geopolitical hegemony of the United States, which includes fueling wars worldwide. Such policies lead to humanitarian and environmental catastrophes and, in the long term, risk escalating into a third world war, threatening the very existence of humanity.
14. Time-Tested Reliability of the Asset
Among all the assets listed in the table, Gold holds a unique status due to its value established over centuries and reinforced by cultural and historical traditions. This makes it a symbol of reliability and wealth. On the other hand, cryptocurrencies are the newest financial instruments. Despite their innovativeness, assets like Bitcoin and Ethereum have repeatedly lost up to 90% of their value. The Dollar, holding the status of the global reserve currency for less than a century, is also not immune to changes: history and statistics show that reserve currencies typically change approximately once a century, and there is a high likelihood that the Dollar is nearing the end of its era. However, being time-tested is not a decisive parameter for assessing assets, as the world is driven by "black swans": rare and unexpected events capable of radically changing the course of history. There is reason to believe that cryptocurrencies themselves are such events, as they have already begun transforming the global financial system.
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