Flat coin: Pros and cons.

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Hello friends, welcome back to this space, am also super glad to be back in your faces after a very short break. I trust you had a great time going through my last publication. Well today's experience won't be any different as you would also be enjoying today lesson

We would yet look into the topic we discussed in my previous post on Flat coin. We would be looking at the pros and cons. I hope you're not surprised we we would be considering this, well that's just to tell you that the initiative is not all perfect. Let's get to learn from this post. Shall we? I believe it's a yes...leggo

Pros of Flatcoin

• Inflation Resistance: The very first advantage of Flatcoin is the fact that it's inflation resistant, meaning it's not subjected to the effect of inflation. There is a balance mechanism that helps it stay afloat inflation. The problem with most stable coin is that they really can't stand the effect of inflation.

The bottom line now is that Flatcoin is the best bet for any investor who want to be safe from the effect of inflation since flat coin is measured using human standard of living rather than a pegged underlying asset subjected to inflation.

• Steady Purchasing Power: This is super amazing, the purchasing power of Flatcoin has been designed to level up even as the cost of living increase. The purchasing power of a Flatcoin do not diminish in the face of an increasing cost of living. They operate at par.

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I believe it one of the major reason why people are loving the idea. Inflation on a normal day would cut down the purchasing power of a currency such that one spends more to get less, in this case the cost of living has increased but with the flatcoin ideology, an increase in the cost of living is equal to an increase in the value of the Flatcoin just to maintain it purchasing power.

• Global Adoption Potential: Flatcoin seem to have an ideology that is quite different and unique, it idea is something that an average man can relate with as it tied or pegged to the standard/cost of living and not some currency. This gives it the potential to be adopted globally without any form of geographical restrictions.

• Transparency: Transparency is also one of the leverage and advantage that Flatcoin has in that the algorithm used in adjusting supply and deriving inflation data are transparent and publicly accessible. Of course anything with credibility and transparency would surely gain traction and be supported. The edge for Flatcoin here is that their algorithm i.e Truflation can be publicly accessible and checked.

• Guarantee of Equal Exchange Value as a Medium of Exchange: Flatcoin can serve as a medium of exchange with a fair and equal value globally. It's not affected by currency devaluation. Hence it can be used across borders.

• Reliance on Oracle: Flatcoin would actually not perform well if it doesn't have an Oracle like trufflation which feeds it with the necessary information it needs for the algorithm to function appropriately. Without and oracle, this idea would be incomplete and would of course lack functionality.The dicey part is that these data could be manipulated and once been sent it could disrupt the price of a flat coin.

• **Mechanism Complexity: what it takes to keep a Flatcoin functional and accurate in line with it real design is actually complex unlike the simple model adopted by stable coin that uses general asset as it pegged value. Adjusting the Flatcoin supply from time to time require a whole lot, you need to track the inflation rate and cost of living per time for flatcoin to maintain it value and function in line with it real design.

Cons of Flatcoins

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• Users participation and input: Flatcoin relies on users adoption and participation to thrive. A user is expected to provide collateral against price volatility, this in a way can hinder it wide adoption. Moreso flatcoin levels up with inflation rate when there are more than enough asset by means of holding on the part of investors but when there is massive pull out, the asset might just depreciate in value

Bottom Line

I believe by now you know what Flat coins are and how they function coupled with their pros and cons.The future of Flatcoin seems to be bright but then it all depends on adoption. Many have not subscribed to the idea because it still in it infancy stage and still be tested. If it proves itself to be a kind that is sustainable then we should see a breakthrough there for choosing to be an initiative that is inflation-proof.

I want to believe you've gotten so much from this piece. As my usual custom is, I would always encourage that you DYOR to be sure of every financial step you would want to take as I won't be liable for any form of loss encountered by you.

Feel free to share with me your thoughts in the comment section. Thanks for your time once again. Gracias!

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^{Disclaimer: This post is made as an education and not investment advice. Digital asset prices are subject to change. All forms of crypto investment have a high risk. I am not a financial advisor, before jumping to any conclusions in this matter please do your own research and consult a financial advisor.}

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Regards
@lhorgic♥️

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