ViCA – Transparency and Trust in Microfinance

Inflation is not factored into the valuation of the ViCA virtual asset. ViCA's strategy is based on the "Noflation" concept, a mechanism for ensuring future earnings for all stakeholders without devaluation. This paradigm may appear to be unique from the existing financial market's employment of both traditional and digital currencies. However, the concept gives an outstanding method for profit generation, business growth, and profit expansion through careful planning.

To completely comprehend ViCA's profit-sharing model, one must first understand the history of inflation and the distinctions between "Noflation" and typical inflation, which occurs in both developed and poor countries. In other words, inflation is the pace at which the price of particular goods and services increases across a country or economy. Numerous causes can contribute to a currency's depreciation, but when the cost of necessities and goods increases, it can have a detrimental effect on the economy.

Noflation is no longer a concept in financial and banking institutions. Each country has a central bank or state bank that is responsible for issuing currency, which is backed by a specified amount of gold or other valuable commodities. When a currency is circulated among a greater number of people, its market capacity increases. Most nations permit citizens to exchange their currency notes for precious metals such as gold.

The value of the central bank's currency has increased as a result of a variety of causes, including poor economic conditions, natural calamities, and the like. When more money is printed, inflation and price values increase, but the currency's value decreases.

As a result, some argue that the government and individuals in that economy are losing money as a result of greater currency issuance or an increase in the rate of inflation. Taxes levied on a country's citizens are the primary source of revenue for the government. It is then used to fund a variety of initiatives, including research and development, as well as human costs. If the government spends more than it collects in tax income, it, too, must borrow to prevent deficits.

Numerous nations accomplish this through a more traditional method: they issue "bonds" with a predetermined value. While individuals can purchase these bonds with their own funds, the government can also use them to borrow from the central bank. Central banks create money by purchasing government bonds, so indebting the government to its own bank. However, in this case, the amount of money floating about the market gradually increases, resulting in inflation and a decline in the currency's value relative to other foreign currencies.

Similarly, anyone who lends money for a certain period of time at a fixed interest rate will end up losing money due to the quick rise in inflation. When he receives his money in five to ten years, it will be significantly less valuable than when he deposited it, as product prices increase and the currency devalues over time due to inflation.

A few years from now, the government will gain from lower bond values as a result of pledging them as a guarantee and getting a specified amount of money. As a result, anyone holding a specific amount of cash will actually lose money, as his savings will become less valuable in the future, and inflation will result in increased prices for every single product.

ViCA, on the other hand, is based on a bizarre, but wonderfully beautiful, idea that states that if no new money is issued, there will be no need to worry about inflation control. As a result, the country's operations would have to be conducted entirely in local currency. If the Noflation model is strictly followed, this will be an unexpected result.

As long as there is no inflation, a depositor can expect to get his original investment, plus interest, after ten years, provided the value of his currency does not change at all. As a result, depositors can trust the bank with their money without fear of inflation or currency devaluation.

Because no new currency is created in the case of Noflation, the market becomes more limited, leading in higher commodity prices but also a rise in the currency's value. This means that if 1 USD was previously equal to KRW 1000, the currency's relative value will grow and 1 USD may be traded for KRW 800 as a result of low inflation and increased demand.

Additionally, if there is no market inflation, an economy can attain a positive currency exchange rate. To appreciate the core premise, just substitute ViCA tokens for KRW; the total number of ViCA tokens released will never exceed 2 billion. Additionally, our firm will make no sales or offers that could affect future revenue. Due to the scarcity of today's ViCA, its value will only increase over the next ten years.

Each year, a significant number of tokens are generated, but the challenge is that they are sold at a fixed price to fund the project's operating costs, marketing, and promotion. Bitcoin and Ethereum are two of the virtual assets that are classified as Noflation currencies due to their increased market demand and level of trust. ViCA guarantees a 1:1 token exchange and no sales with the Noflation technique. Even if the token is held solely in one's hands, the ViCA foundation will purchase it in order to diminish its genuine value.

More information:

Website — https://vica.global
Telegram — https://t.me/joinchat/SZUUF7kprWoyNzk5
Twitter — https://twitter.com/ViCA_Foundation
Medium: https://medium.com/@vicafoundation
Facebook: https://www.facebook.com/ViCA-GLOBAL-102297372207693
LinkedIn : https://www.linkedin.com/company/vica-foundation/about/
Reddit: https://www.reddit.com/user/ViCA-GLOBAL/
Youtube : https://www.youtube.com/channel/UCSqTs3Cm8kk1kn9ECZPwlhA

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Author

Bitcointalk username : Carmela L0uise Whittle
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