Every man, woman, bank, and investment house needs to make the rate of inflation each year just to stay even.
As governments increase the money supply (M2) of their fiat currencies inflation follows.
Around 20% of all U.S. dollars in the money supply, $3.4 trillion, were created in 2020 alone. The US M2 supply currently stands at $20.87 trillion.
The reason why this drain on wealth continues is because there is no viable alternative.
That is until now.
A competition has been launched to build the first iteration of the digital Goosie coin.
Those that fund this first build are compensated with 1% of all Goosie minted daily. One per cent of $21 trillion is $21 billion.
Unlike debt-based fiat currencies Goosie is backed by hard assets, in this case Bitcoin.
Every Goosie coin entering the market is over-collateralised with BTC.
And unlike fiat currencies Goosie is pegged to the value of gold, the world’s most enduring source of stable monetary value.
The asset-backed gold-pegged Goosie coin is also private money.
No government is responsible for its minting. Organised as a private club, like Bitcoin there is no incorporated body or national jurisdiction.
Apart from its primary function to provide stable private money Goosie upsets the apple-cart of other less-than-desirable features of the current fiat system.
This is because Goosie enters the market as a loan against the Bitcoin collateral men and women deposit into a smart contract (software designed as tamperproof).
The smart contract always issues 54% of the value of the Bitcoin deposited. 4% goes to the Goosie system and 50% goes to the man or woman making the deposit.
There is no third party like a bank involved. Unlike traditional lending men and women retain control of their BTC assets at all times.
Neither is there any interest to pay. The loan is interest-free and there is no term. The loan can be repaid at any time the man or woman want their Bitcoin back.
Goosie also reduces the risk of borrowing. Traditional borrowers face with a margin call if the value of the collateral they post falls below a certain level. Goosie does away with margin calls altogether.
Bitcoin was originally considered an alternative to fiat. However its volatility makes it a non-starter. It is now considered as a means of capital protection and store of value. Goosie takes these characteristics and unites them with the long term stability of gold.
As the project gains momentum it is spawning a rethink of long-held assumptions about money.
Why should money be exclusively issued by government? As Nathan Lewis has so ably documented in his books this certainly was not true, especially in the United States until the recent past.
Why use money that erodes wealth through inflation?
Why pay interest on a loan?
Why be constrained by a defined loan period?
Why run the risk of losing your collateral through a margin call?
The Goosie website has more details for those wanting to learn more about the competition. The Build Rules are open source and can be found here.
