Why Purchase Anchor Tokens?
Anchor is a new stablecoin that will be available on crypto exchanges in August. It is the world’s first non-flationary stablecoin that offers a solution for the volatility of both fiat and crypto markets.
However, being the world’s first in anything is not reason enough for you to buy a cryptocurrency. That’s why we’re going to explain some of the potential benefits of holding Anchor tokens.
Who would benefit most from using Anchor tokens?
To put it simply – Anchor will be beneficial for everyone. It is an algorithmic stable token that intends to deal with stablecoin issues with auditing or trust. And, as it is pegged to the real growth of the global economy, it actually removes the inflation from the equation by acting as a buffer for it.
Furthermore, the algorithm that the Anchor project is using is making certain that the tokens will not only avoid the pitfalls of inflation but will instead appreciate over time, making for an excellent long-term investment.
Moreover, crypto investors have been looking for a truly stable store of value for ages now. But, so far, none of the previously existing currencies have managed to fulfill their promises.
The Big Players
As far as investors go, the ones who will profit the most from the growth of the Anchor system will be the early investors. Moreover, the fact that Anchor represents a dependable hedge for crypto investors and that it can hold its own both against inflation and crypto volatility makes it ideal for banks, hedge funds, and various other investment institutions.
Use for Global Payments
For powerful companies, settling international obligations has always been a challenge in and of itself. Currently, companies are using two different types of transactions to transfer money:
SPOT – Transactions that are rather fast and can only happen once and only in the agreed-upon currencies which, at this point in time, include the USD and the EUR. That means that companies that are not from the US or Europe have to make a side transaction and lose money on the exchange to make their transaction.
TERM – Transactions that are a lot slower but can happen more than once. The big issue with repeating transactions is the fact that the interest rates or exchange costs can vary greatly and quickly lead to both of the participating companies losing money.
For example, if you set up repetitive transactions to receive money from your partners from Europe while you live in the United States, a sudden shift in the value of any of the two relevant currencies (USD and EUR) can have a significant effect on either parties.
Anchor tokens can be useful for both of those transaction types, and, more importantly, they can solve some of the prominent problems that they present. Anchor offers the participants the ability to exit the transactions using any currency (crypto or fiat). Furthermore, it increases the security of the parties in TERM transactions thanks to capital protection capabilities that it boasts.
Crypto Enthusiasts
If you truly believe in the future of cryptocurrencies and are looking to invest in a stablecoin that aims to become a financial standard – a medium of daily transactions that is available to the mainstream audience, you might want to purchase Anchor tokens. These tokens will preserve their purchasing power over time and will offer the holders several pathways into the world of blockchain payments for goods and services.
As you probably already know there are already several stablecoin projects around, and hundreds in preparation. Below are some advantages Anchor has over existing competitors:
- The first big advantage is that the algorithmic economics mechanism makes Anchor more independent of market trends.
- Anchor has a safety net that ensures stability by leveraging six different mechanisms, making it stable in all predictable economic eventualities, such as global recessions.
- Anchor features a number of incentives for buyers. For example, buyers of Dock tokens (Anchor’s utility token that helps stabilize the system) will receive a preferential rate when they choose to convert back to Anchor tokens in the future. And, more importantly, the entire system is pegged to a reference unit that slowly appreciates over time.
The Common Joe
Not everyone has the means to throw around millions of dollars and leverage every benefit of stablecoins properly. But, there are benefits that just about anyone can reap from purchasing Anchor tokens. So, how can Anchor help your average citizen?
Pensions
One of the things that most people tend to forget about is that the inflation rate really harms the quality of life for pensioners. Bear in mind that, once you retire, you will depend solely on passive incomes and your pension. Now, there are various savings benefits, pension plans, or other benefits already in place. But, most of those benefits come with a plethora of issues. In the past 3 decades, the US dollar has lost about half of its value. And, for a lot of us, three decades is around the amount of time we will have to wait to reach retirement.
So, if you are planning to live cozily with $48,000 a year, you might want to redo your math and double the amount of money you will actually need.
That is why a lot of people who are preparing to retire are starting to consider investing in high-risk vehicles to get a chance to render enough wealth to remain comfortable for the later part of life.. While that may work in rare cases, it also comes with a significant downside – they might just end up losing all their money from these high-risk investments.
This is where Anchor can step in to help. Anchor is a stablecoin that has the ability to act as a buffer for inflation and deflation. Here’s how Anchor acts as a buffer for inflation.
The value of Anchor is pegged to the growth of the global economy. It achieves this through a proprietary algorithm that calculates the international financial data from more than 190 countries to provide the most accurate available measure of global economic growth. This algorithm is called Monetary Measurement Unit (MMU). In addition, the two token system ensures that Anchor maintains a steady value and steadily appreciates over time.
With Anchor, your retirement fund will be safe and sound. In theory, our currency can only crash if the entire global economy plummets. And even then, it’s depreciation will be lesser than that of traditional fiat currencies.
College Funds
A similar problem pops up when you start saving money for your kid’s college fund. While waiting for your child to get to college doesn’t take quite as long as reaching the retirement age, it’s still a long time. And, in that period, the value of your local fiat currency will go down significantly.
By pegging to the real growth of the global economy, we are ensuring constant, stable growth. How? Well, if you look at the numbers, you will see that the global economy has been steadily growing for the past three decades, while fiat currencies have been losing their purchasing power. Data from the World Bank shows that since 1960, global GDP has expanded from $1.3trn to $80.7trn. World economic growth has increased at an average rate of 2.5% annually for the past 25 years despite market fluctuations within each country, thus providing a reliable measure for value. By developing an algorithmic financial index based on global GDP, Anchor is aiming to create the first reliable and predictable financial standard and measure of value.
When you look at the issue from that angle, Anchor seems like a logical step you can take to ensure that your money keeps its value even if the fiat currency you hold plummets.
Final Thoughts
Anchor offers something for everyone. It represents a safe investment that is all but immune to inflation and, thanks to being pegged to a basket of currencies, to dynamic economic conditions.
It offers a decentralized system for all investors who want to have their money preserve value over the long-term and who want to avoid having to actively tend to all of their investments just to stay afloat.
Anchor TGE
We are launching our token in August, so make sure to keep your eyes open for when you can start purchasing and trading Anchor on leading global exchanges.
Disclaimer: The information provided in this post is not legal, accounting, or financial advice. I am not a lawyer, accountant, or financial advisor. I am not registered as an investment adviser with any federal or state regulatory agency. The Information should not be construed as investment or trading advice and is not meant to be a solicitation or recommendation to buy, sell, or hold any cryptocurrencies.
Title photo by create jobs 51, Shutterstock.