Digital currencies are generally available via cryptocurrency exchanges. When we consider and review how exchanges work we can clearly see…
- They make their revenue through a per transaction fee.
- This means their motivation is to prefer volatility as there is lots of buying and selling (transaction fees earned) during volatility.
- It also means they absolutely LOVE crypto-traders as traders can do multiple transactions per day – sometimes in an hour = the very best source of profit for an exchange.
- When you have a coin that is STABLE (AKA: Not volatile) and when the motivation of the buyer (because of the compounding) is to hold, there aren’t many transactions / profit to the exchange….
we can easily see how an Anchored Coin such as The People’s Reserve, doesn’t quite fit and could even be seen as a threat to their profit model.