Bitflate was created as an effort to introduce a digital native payment medium through a constant 7% annual increase of supply.
While Bitcoin’s price appreciation is based on increasing scarcity, we at Bitflate consider an inflationary approach a better fit for a digital currency that claims to be usable for everyday spendings.
You might think “Hold on, a crypto with inflation? Isn’t that what keeps my money losing value over time?” And yes, that’s true - for one part. However, you have to consider that without financial means like inflation, any currency - be it fiat or digital - tends to fluctuate wildly in value. With a shortage of supply, it’s near to impossible to predict its value. While this may be fine for a pure speculation object like gold, it compels ‘hoarding’ behavior and consequently, no one wants to spend it; making it unlikely to be used as (digital) cash.
Inflation may be a contrary feature to a major premise of other cryptocurrencies regarding their absolute scarcity, but it can also be seen as an economist’s tool for creating price control. A 0-7% inflation range can be pursued by mixing Bitflate with bitcoin Hybrid Coins. By incorporating inflation from Bitflate with bitcoin-backed services, the added stabilizing effect may result in fair and expectable conditions - which in turn gives way for a greater variety of loan offerings.
That’s exactly why we have created Bitflate: A digital currency that aims for long-term price stability.
Bitflate is based on Bitcoin, and will have its code regularly updated with the latest Bitcoin developments.
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