Our BTCsc will store value with the use of the original cryptocurrency (BTC) and the value will be pegged to USD. We simply use the BTC as collateral when creating a short derivative contract. By doing that, we achieve near perfect hedge – and the last obstacle for the rest of the world to adopt crypto will disappear.
By doing this, we have successfully created a stablecoin that maintains a value. Should the price of BTC (worth 100$) go up by 10 %, we earn 10 $ because we own a BTC and at the same time we lose 10 $ in the short position. If the price of BTC goes down by 10 %, we lose 10 $ on our BTC but gain 10$ on the short position. Either way, the original value remains unchanged. We find ourselves in a hedged position.
