Re: [ANN][DASH] Dash | First Anonymous Coin | Inventor of X11, DGW, Darksend and InstantX
For example, and this is just hypothetical lets say Coinbase requires a 10K DASH payment ahead of time to integrate Dash to their service. But we decide to split it up in 6 payments not to clutter the budget space. Then when the news is announced the price of Dash rallies. Does that mean that by the 4th month we are going to start saying we should not be paying Coinbase their full 10K because the price went up? Of course not
Society has already met this problem - using risk assets as currency for medium term contracts in a dynamic economy - and discovered it didn't work (for the same reasons as Dash is finding it doesn't work).
Why not just fast forward to the obvious solution that's already in use by the rest of the human race - Dash futures. That's what futures are for. No manufacturing company in existence (at least any that exports their products) would ever have survived without such derivatives.
It's the price you have to pay for using a risk asset as money. (Or at least find some equivalent that's appropriate to the problem at hand). Surely the marketcap's big enough by now for it to be worthwhile for some 3rd party to deliver such a product. (Dare I say 'financial instrument' ?
)All it needs is a party who can broker two sides - one that takes the long side and another that takes the short side. What comes out of the conjugate is a future derivative that can be issued to the blockchain budget applicant which has a stable value regardless of the volatility between Dash/BTC or Dash/USD.
(P.S. in case anyone thinks that's an ambitious plan, it isn't. There are plenty of takers for both sides - just look at any order book on any Dash exchange).
(P.P.S. Why do manufacturing companies [like car manufacturers] in particular use derivatives ? For the exact same reason that Dash budget is discovering: they budget based on current prices but it takes 6 months to get their product into the market. They need everything to come in on budget - even if the price of aluminium tanks or pumps during that time. So they fix ALL their prices, both selling and purchasing at the start of the contract cycle using derivatives. That way both contractors and customers are happy. Without derivatives there's always a loser).
See the thing is that without the volatility it would be way harder to get more adoption and new partners. Established crypto businesses know they bring value into the relationship at this point and they hope that as a new partnership is announced the value of the network and the price would go up. They care a lot more about the potential upside than about the potential loss.
Take away that volatility and there is a lot less interest. It is one of those things that if you "fix it" it has unintended consequences.
This will not be the case later on, as Dash is bigger and more established we will have a lot more leverage in the negotiation and will be able to dictate the terms we want. For the time being we need to be more flexible.