BitBay (BAY): The first independently correlated asset?

Have you ever woken up, checked your crypto portfolio, and (through a sleepy haze) witnessed a sea of deep red flash across your screen?

I don’t know about you, but it makes me want to curl up in a ball, cry, and go back to bed.

Unfortunately for many of us over the last year and a half, this has been an all too common sight and feeling. And it can be a weekly (if not daily) occurrence. It seems that as soon as our favorite altcoin begins to gain positive traction in price, the king of crypto, Bitcoin, decides otherwise. We either see it skyrocket to the moon or plummet into hell, dragging the entire altcoin index along with it.

This is a massive problem.

Also, for every small-cap crypto project out there, these price swings directly affect the ability to pay for employees, marketing, any other development costs. When a project’s budget booms and busts right along with Bitcoin’s price, sustainable growth becomes sporadic right along with it. Now, this might not be a big deal (yet) to crypto projects who received traditional fiat-based funding and are only in the whitepaper phase, but it is very damaging to real working projects who rely on their own supply for funding.

Thankfully, a short-term solution has been created to help protect against these massive price swings: Stablecoins. These fiat-backed tokens have allowed to traders to pull their value off the table market during negative volatility, and protect* it behind the stability of the US Dollar, Euro, or Yen. It allows them to experience the stability of fiat, without actually having to hold it. While these stablecoins have been a useful tool, they haven’t come without their own set of tradeoffs (pun intended). Tether, for example, has had its fair share of controversy over the years, making investors second guess how much risk they really are mitigating.

• Nothing is truly safe in the world of currency.

Today, there are hundreds of other stablecoin projects popping up, all mimicking the antiquitous dollar-backed model of Tether. How are investors supposed to know which options will provide them with the most risk reduction? How can small-cap projects continue to grow while the entire market is dragging them down?

Well, there is one solution in the works. It has already been built. It has been rigorously tested.
It’s called a “dynamic peg”.

Originally created and built by BitBay, its dynamic peg offers a completely unique model volatility management. It allows anyone to gain exposure to a 100% independently correlated asset. With a secure voting system, active participants of the BitBay network can put collective force on the direction of liquidity within BAY’s supply.

So when the next bear cycle arrives, and Bitcoin starts to crash (taking all of the altcoins with it), the BAY community can deflate the liquidity of their supply to match the reduced demand. While Bitcoin and the entire altcoin index are down, BAY can march to the beat of its own drum. This not only has the power to keep BAY’s price from falling, but it could even push it upward.

The ability to achieve this type of independent correlation has some powerful implications. Not only would investors have a place to protect their funds, but they would also have a profitable hedging option during a market-wide bear cycle. Seeing the amount of capital flowing into stablecoins during last year’s crypto bear market, it’s no question that there is a strong need for this sort of technology.

Independent correlation also provides lucrative benefits to the gargantuan traditional markets as well. During the beginning of a global recession, everyone seeks out “classic assets” to shelter/hedge against the downturn. These commodities of precious metals, grains, or other similar vehicles have been tested time and time again. The problem is, they all lack the beneficial characteristics of cryptocurrencies, which are high in liquidity, censorship-resistance, neutrality, and borderless exchange. Add independent correlation to that list, and you have one powerful hedge against any downturn.

The independence that BitBay’s dynamic peg brings to the table will be extremely helpful for small projects as well. In fact, that’s one of the driving principles behind its creation. When a small crypto project funds its own development and team with a self-reliant asset like BAY, they have a significantly stronger chance of surviving a negative Bitcoin cycle. In fact, they might even come out of the other side with a more robust budget than they started with.

Someday soon, when you roll out of bed check your portfolio through sleepy eyes, you might just have to look twice.

Because when BAY is the only green in a sea of red, the world will take notice.