In its short lifetime, Bitcoin has had 452 obituaries online. Each of these obituaries was a missive about Bitcoin being a “ponzi” on life support, following its premeditated path to zero value. Bitcoin’s price has dropped in excess of 50% so far this year, and the bear market seems to only be getting warmed up.
Berkshire’s vice chairman Charlie Munger has been the fiercest critic of cryptocurrencies generally, saying “In my life, I try and avoid things that are stupid, evil and make me look bad in comparison to somebody else…and bitcoin does all three.” Munger said bitcoin was likely to go to zero, evil because it undermines the role of the Federal Reserve, and makes the U.S. look foolish “relative to the communist leader of China” who effectively moved to ban bitcoin.
On the internet, the phrase “Bitcoin is Dead” is also getting more and more attention. According to Google Trends data, after BTC fell below the $18,000 threshold, online searches for “Bitcoin dead” reached an all-time high.
New crypto projects have been built specifically to prove Charlie Munger wrong
Whether Bitcoin is dead now or will be in the future, a new crypto project has taken Munger’s erroneous prediction, flipped it on its head, and nailed it to the wall.
Berkshire Hathaway is a major proponent of diversification, solid economic fundamentals, and moats that can be defended. In the absence of direct investment in a company through owning shares, both Munger and Buffet recommend ETFs (exchange-traded funds), which buy a variety of stocks at once, and dividend stocks, which generate continuous passive income.
However, a new breed of web 3.0 projects has risen from the icicles of the crypto winter. They have designed features that emulate those characteristics lauded by Berkshire Hathaway and have learned from failed projects like the recently departed Terra (Luna). One particularly remarkable idea borne from the crypto ice age is the innovative project named My Freedom Coin (MFC).
What exactly is My Freedom Coin?
My Freedom Coin (MFC) is marketed as the first user-owned DeFi software platform of its kind, offering investors steady growth and access to a crash-proof crypto asset.
MFC is referred to as a “stock-like cryptocurrency” because it has been designed to be crash-proof without the volatility of other projects that sit on various blockchains. It has a built-in protective mechanism that prevents it from dropping below its floor price, a concept discussed later in this editorial feature.
The MFC project sets a floor price for its native token by setting up a treasury with BUSD stablecoin assets—sufficient, at all times, to buy back all MFC tokens in circulation. Like many DeFi tokens, My Freedom Coin operates on the Binance Smart Chain which has exploded in popularity. All transactions carried out on its network contribute to the coin’s rising value.
MFC is a multi-faceted project, with composite elements that make it truly innovative. One pillar is its trading platform and bank account for crypto and DeFi investors.
While interesting, that is not the project’s most profound innovation.
What makes MFC unique among cryptocurrencies?
My Freedom Coin’s “Zero Liquidation Risk” makes it unique from other DeFi (unlike Celsius which currently owes users $4.7 billion, a bankruptcy filing reveals). Investors in this space have seen what can happen when a project is poorly designed, with Celsius and Terra (Luna) being the hallmark case studies in liquidation risk consequences.
MFC gives users rewards for referrals and contributes to its network effect. A small fee is added to all peer-to-peer MFC transactions by the protocol. This makes the supply go down and the “Floor Price” go up. Investors who own tokens benefit from this because it makes the asset more stable and valuable.
Additionally, the protocol makes it possible for users to directly benefit from one another through transaction fees, exchange fees, and loan interest. This changes how the traditional lending systems work and provides all the benefits to holders of MFC.
Should MFC be part of a diversified cryptocurrency portfolio?
Analysts are excited about MFC, not just for its “crash proof” innovation but because of the team behind it. MFC is free to download via its website on iOS and Android. Interested parties can use the code ‘CXPMGOSKJT’ to join the platform.
The tokenomics are also interesting, with a monthly fee of $50 funding a deflationary “BuyBack” program, split 10% in favor of demand generating purchases of the MFC token and 90% being used to fund the Community Program for Referral Bonuses.
The project purchases its own tokens to remove them from circulation, causing the floor price to rise. Essentially, the $50 fee is reinvested entirely in the project, which is a governance principle that should be emulated by other crypto projects. For the first 10,000 holders, the fee is $0 and will increase by $5 for every 10,000 users until reaching $50. 90% of this fee is distributed in a referral program to help grow the ecosystem, and 10% is used in the Buyback protocol to increase the Floor Price.
MFC members get rewarded when invitees utilize the exchange. Users are encouraged to spread the word about the project through this multi-level referral program.
Analysts believe MFC might be the type of coin to dethrone Bitcoin
BTC is not going anywhere, despite its fall from grace and pundits predicting that it might serve as a hedge against runaway inflation. However, My Freedom Coin with its “Floor Price” and “Zero Liquidation Risk” principles, should comprise at least a part of a well-diversified crypto portfolio. Analysts say that it is innovations like MFC that will bring crypto back to life and serve as a catalyst for the next bull run.