The Tiberius Coin provides exposure to the cryptocurrency market and is designed to have a price floor which can never, and will never, go to zero.
Correlation protection when cryptocurrency markets crash
There is a huge bottleneck in liquidity between cryptocurrencies and fiat currencies. Only a few cryptocurrencies can be exchanged for fiat, driving huge price drops when these few crypto-to-fiat liquidity channels become distressed.
General cryptocurrency market hedge
The Tiberius Coin is not only more stable in price, but it solves the biggest problem in the crypto market, namely crypto-to-fiat liquidity. The Tiberius Coin is not only easily exchangeable for commodities, but the commodities themselves are uncorrelated to cryptocurrency markets.
Cryptocurrency market participation
We are in the midst of the legitimisation of cryptocurrencies as an asset class, which means a huge inflow of institutional capital. The Tiberius Coin risk profile perfectly lends itself as a means of participation for funds, family offices, and high net worth individuals. The Tiberius Coin is an excellent sales pitch for the new entrant money manager desiring crypto exposure: an investor who has less trust in cryptocurrency markets than millennials but has a lot more capital to deploy.
Consumers: both retail and industrial
The Tiberius Coin enables all the clever applications of the blockchain but is safer for consumer finance uses than conventional cryptocurrencies.
Currency Risk in Emerging Markets like Turkey and Argentina
Currency risk is one of the greatest issues associated with living in an emerging market nation. Not only is wealth disparity crippling low-income populations around the world, but serious issues surrounding wealth erosion compound low living standards and inequality. It is sovereign credit issues which drive this destruction of value, with the “decentralisation of value” in the form of Bitcoin being borne just months after nothing less than the US housing credit crisis of the late 2000s.
Commodities in consumer finance
A little inflation is healthy for the economy, it means that asset prices are rising. However, run-away inflation in countries such as Venezuela (approaching 1 million percent), Argentina (c. 40%), and Turkey (c. 15%), means that prices of everything from food to medicine are far outpacing any real economic growth. Inflation becomes a problem when prices are rising but wages aren’t.
Commodities, and in particular metals, have long been known to be an inflation hedge. Metals are traded in every currency, which means that the holder of a Tiberius Coin – the owner of metal – is never subject to the currency risks of any one nation. If one currency goes down, you can still exchange metal for another which is going up. In reality, the Tiberius Coin is protected as it will be tradable against multiple currencies (crypto and fiat).
Commodities as inflation protection
Commodities are, in their very essence, an inflation protection. The price of a metal in the long run, simplistically, can be thought of as being close to the cost of production. When prices rise due to inflation, it drives up the costs of producing the commodities. As a result of higher wages, more expensive mining equipment, and the costs associated with digging minerals out of the earth, as per the definition of inflation, the price of the metal increases.
In the 23 emerging market countries which have annual inflation rates in excess of 10%, it is clear that it pays to hold the Tiberius Coin. Tiberius wants to help disrupt consumer finance for millions of people through combining the power of commodities and the blockchain as a savings tool.
Wealth management tool
As stated previously, the Tiberius Coin provides exposure to a crypto-decorrelated, inflation hedged, and currency hedged basket of metals – perfectly combining commodity investment with blockchain consumer finance solutions.
Consumers of metal
The Tiberius Coin offers value for metal traders and corporate consumers alike. For example, treasury departments of large automotive companies traditionally sit on a lot of cash yet continually consume metal.