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Crypto Asset Management over Bitshares Blockchain

Created on October 25, 2018

EXECUTIVE SUMMARY

With the world’s currency systems in disarray, speculators are dabbling with the possibility that cryptocurrencies potentially present a way out. However, certain caveats have made it difficult to jump into the cryptocurrency market with both feet.

Volatility in the crypto market has been present from its inception, although the market doesn’t see the huge swings it endured in early days. Volatility still plays the lead role in today’s market. This case study will examine an option available on the BitShares blockchain. Its aim is to find a stable income-bearing asset on the blockchain through diversification.

INTRODUCTION

As the world looks for ways to solve the financial and economic instability of today, the emergence of Blockchain technologies has risen to meet some of these challenges. In fact, the cryptocurrency market has seen huge growth over the past few years, yet that market itself has a fair amount of volatility.

For that reason, mainstream adoption of cryptocurrency has yet to take full flight, Investors simply cannot afford that level of risk. The world needs options that minimise the risk and maximises the potential for return.

This case-study will discuss the ways that cryptocurrency can rise to meet these challenges and present options to solve the challenges with its current currency systems and how Bond was able to execute this project on the BitShares blockchain.

THE CHALLENGE

When it comes to people “change” can be a big challenge. We get used to doing things in a certain way and we stick to it. The world we live in is changing fast. The emergence of crypto-currencies is a clear demonstration of that change. Governments around the world are waking up to the benefits of blockchain technologies and crypto-currencies and the integration of some of these technology solutions has already taken place. The challenge we face now is to accept cryptocurrency’s presence as a fair challenge to our current currency systems.

Fiat currency has three main properties: exchange, value, and measure of account. All these properties give fiat its place in economies today. Is it the best form of exchange, considering the inflationary charges paid to transfer? In a world where the currency is losing purchasing power daily, does it give value?

It is still a measure of account. We are still at the very early stages for crypto-currency and as a consequence, we still have limited stable options available.

THE OPTION

Overview

Bond allows accredited investors the option of diversifying their portfolio and reducing their overall risk. Bond’s desire is to create an option that can potentially stabilize the volatility issues that plague the cryptocurrency market today.

Bond is the trading name for Euskara Management, Ltd. Bond is a private offering for accredited investors only. It is issued as a user asset (UIA) on the BitShares blockchain. Each unit represents an equity share of Bond’s asset portfolio. The goal is to provide a basket of fixed rate and variable rate assets as part of a diversified portfolio that pays a percentage of profits every quarter.

By allowing accredited investors the option to diversify their portfolio and reducing their overall risk, stability is a probable outcome. For the rest of 2017 and in the first quarter of 2018, Bond will continue to purchase BitShares on the open market, buy property bonds from established UK property companies and provide liquidity for Bitcoin speculators. This strategy will provide Bond with a steady rate of return.

By the second quarter of 2018, the global real estate market is likely to have had a significant correction. This will present a favorable opportunity for Bond to begin building a real estate portfolio around the world. The purchase of student accommodation in the UK will yield Bond with a steady rental income. This market has shown steady growth for a number of years now.

With this strategy in mind, Bond wants to capitalize on the potential upside from this sector of the property market. This activity will help to underpin Bond Unit and establish Bond as a true store of wealth.

What is Bond?

  • Bond is a 100% asset-backed digital currency, secured against a diverse crypto property asset fund.
  • Bond is issued as a user asset (UIA) on the BitShares blockchain, making it tradable with other investors.
  • Bond is a private offering for accredited investors only.
  • Bond’s objective is to create an option that offers stability in a cryptocurrency environment that is otherwise plagued by volatility
  • Bond enables accredited investors the option of diversifying their portfolio and reducing their overall risk.

How Bond Works?

Bond’s goal is to provide a basket of fixed rate and variable rate assets – both traditional and alternative – as part of a diversified portfolio that pays a percentage of profits every quarter.

By allowing accredited investors the option to diversify their portfolio and reduce their overall risk, stability is a probable outcome. Bond purchase BitShares on the open market, buy Property Bonds from established UK property companies and provide liquidity for Bitcoin speculators. This strategy will provide Bond with a steady rate of return, projected at a minimum annual rate of 8% of Net Asset Value.

TECHNICAL IMPLEMENTATION

Why BitShares Blockchain?
Currently, Bitcoin can only process seven transactions per second, and Ethereum only thirty transactions per second. With their current model, neither cryptocurrency can achieve scalability – if you had millions of users transacting, Bitcoin and Ethereum simply wouldn’t be able to process the transactions.

BitShares on the other hand, following its Graphene update, can process up to two million transactions in 3 seconds – considerably more than all the VISA and MasterCard transactions are undertaken worldwide. The business world wants to start using Blockchain technology. Not all Blockchains can cope or are designed to meet that level of global demand, with the speed and transparency we have become familiar with. BitShares is designed to meet that very demand, this will make the difference for commerce going forward.

CONCLUSION

Bond is a unique opportunity to diversify an investor’s portfolio. Because 100 percent of contributions will be allocated to assets, Bond’s underlying value will derive from these assets, making Bond 100 percent asset-backed and the minimum projected annual rate of return is 8%.

Bond aims to bring a level of stability to a market that has very few options to achieve this goal. The website’s detailed disclosure section and asset section will be updated frequently.

BitShares is the perfect platform on which to develop Bond. BitShares’ efficiency, speed, and transparency make it only a matter of time for BitShares to do for business what Bitcoin has done for currency — change the game.
With this unique approach, Bond aims to deliver a high level of transparency that will attract and retain a wide spectrum of support. Bond signals the next generation of compliant crypto assets issued on the blockchain.

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