AlloyCoin

The decentralized nature of cryptocurrencies has obvious and distinct advantages, but also brings about problematic effects. Without a central governing authority, like the Federal Reserve acting as the central bank for USD, price stability does not exist. Valuation constantly fluctuates and the price of traditional cryptocurrencies is a strict function of supply and demand. Flash market crashes, extreme inflation and deflation, and acute daily price swings (30% or more), are normal occurrences in cryptocurrency markets. This extreme volatility and inherent instability makes potential buyers, sellers, and merchants, hesitant to accept cryptocurrency as a primary means of payment. Without central authority governance, no one can guarantee minimum cryptocurrency price, yielding enormous market uncertainty. Mass adoption of traditional cryptocurrency, both as a primary method of payment and investable asset, is bounded. A substantial innovation must occur in order to break the current paradigm. AlloyCoin is the first cryptocurrency ever to offer a price guarantee, delivering stability and highly reduced volatility. Unlike all other cryptocurrencies, AlloyCoin utilizes a reserve system that provides a buyback mechanism to public markets, thus establishing a price floor.