Most cryptocurrencies attempt to gain value by being seen as an investment that will grow over time and as a way to transfer funds quickly from one place to another. Because of this most are seen as investment products to be traded for personal gain. For this reason, their prices can vary hugely.
However, Dagcoin has a different approach.It is a cryptocurrency built for people to use every day to buy anything from that coffee on the way to work to the sale of a big multinational business. By being much more like a normal cash currency its price will, therefore, be more stable than other cryptocurrencies. Growing in both price and stability the more people and businesses use it.
Building the ecosystem needed to grow
Because the growth and stability of Dagcoin depends on the number of people and businesses using it. An ecosystem must be created that allows Dagcoins to be used in every way that a normal fiat (cash) currency can. For people, this could be anything from buying your dinner at a restaurant to buying gadgets online or paying your monthly bills. And, for businesses, being able to buy stock, send invoices and accept dagcoin payments from customers.
This is why Dagcoin has created a system called Dagpay. Very simply this is a package of software that makes it possible for businesses to accept or request dagcoin payments. This includes things such as a free and simple to install web plugin that enables businesses to accept dagcoin as a payment option on their website. This software also includes a point of sale system that makes it possible to pay with dagcoins on the high street in a traditional brick and mortar store. For businesses and freelancers who need to send invoices for goods or services, these can also be created and sent in seconds. As well as these options it is possible to see, track and view all dagcoin transactions and orders.
Creating an ecosystem with all the possibilities of regular money makes it much easier and more desirable to either switch to cryptocurrency or use it as an alternative payment method to a regular cash currency. And, the larger the community of users and businesses it has, the more of a no-brainer this decision to use it becomes.
Building the user base needed to grow
To grow a larger cryptocurrency community, growth in the number of users and businesses accepting them for payments must go hand in hand. Without users, businesses will not see enough of a demand to create options to pay with them. And, without businesses accepting payments in a cryptocurrency, it fails to grow and its price remains unstable.
So how does a cryptocurrency grow its community, and how does it do it the right way? Naturally for businesses to think about adding a cryptocurrency as a payment option there must be demand from their customers. That is why users of the currency must come first. In addition, as mentioned above, the creators of a cryptocurrency must create the ecosystem that enables businesses to easily accept it as a payment method.
To grow a bigger base of users both the creators of the cryptocurrency and those very early adopters must work together to promote it. Spreading the word and information about the benefits of the cryptocurrency, such as why is it good? How to use it? And, how it will benefit you as an individual?
Once a currency has created a solid base of users, demand from the community and the opportunity for an additional revenue source will see businesses begin to accept the cryptocurrency as a payment option. At this point, both the number of businesses and users will grow in tandem. As later adopters see the increasing possibilities of what they can do with the currency, and businesses see increasing demand. As both groups grow in numbers, the price will also become more and more stable, increasing trust and growth even more.
It’s a Win-Win
Not only will the price of the currency be more stable the more people use it, the more it will increase in value. This statement may seem a bit contradictory, however, by this we mean that there will be far fewer fluctuations in the price than standard cryptocurrencies. Meaning there will be a steady rise as the community of people and businesses using it grows.
However, it is worth noting that a cryptocurrency – even one built in this way – will lose value if the size of the community using it shrinks or if they do not use it for its intended purpose, to buy goods or services. It is therefore important at all the stages above that the creators and users of the currency continue to speak of and promote its benefits and uses. The creators also have the added responsibility of creating and improving the ecosystem for businesses and users.
For those of you investing and buying dagcoins at this time, this blog gives you a good idea of how we wish to grow the currency into the biggest, if not one of the biggest cryptocurrencies in the world while doing it in a sustainable and sensible way.
Being at an early stage the more users dagcoin gains, the bigger the list of merchants and businesses accepting the currency will be. By joining and promoting the community you help yourself to increase the possibilities of what you can do with your Dagcoins, while also increasing their value.
Currently, the price of cryptocurrencies fluctuates a lot. These big price changes come as a result of most of them being traded as investment products rather than as a traditional currency to buy goods and services.
Dagcoin is something different. It has been created to be used in the same way as normal money. It has been created along with an ecosystem of products that make it easy for businesses to start accepting dagcoin payments.
The more the currency is used the more businesses will start accepting dagcoin as a payment option. And, the more businesses who accept it, the more users it will have. Not only will this increase the value of the coin, but it will also make it a much more stable and trustworthy currency than other digital currencies on the market.
Nils Grossberg is an entrepreneur from Tartu, Estonia. Nils Grossberg graduated from the University of Tartu with a bachelor’s degree in History. He is the co-founder and former CEO of Dagcoin OÜ, the software company behind the development of Dagcoin cryptocurrency and its ecosystem.