Scientist Running an Experiment
Ampleforth is simple to understand. It’s a bunch money nerds running a crypto-based monetary policy experiment. Will this experiment succeed? Who knows. The important bit to comprehend is that Ampleforth is uncorrelated to Bitcoin & revolutionary in its own right.
A considerable problem within the ecosystem is Bitcoin tends to lead the market. Thousands of underlying trading pairs are based on Bitcoin. When Bitcoin dumps, so do the subsequent trading pairs. When a wealthy individual wants to hedge with crypto and they understand this fact, they’re less likely to invest additional portfolio percentages due to increased correlation & risk. The non-correlation Ampleforth has obtained within the crypto ecosystem is a highly valuable unique attribute.
A New Kind of Cryptocurrency
Taking the above picture into mind, imagine a non-dilutive, elastic money that is solely operated by the people. The peoples reserve, if you will. You and I can buy a fixed portion of this experiment and get rewarded as more people realize its real world value. This key point is what makes Ampleforth unique. The video below does a great job of explaining not only the attributes of AMPL but also how it works.
A Federal Reserve Operated by “The People”
Let’s be honest, the federal reserve dictates how the underlying markets in the USA perform. Any decision they make directly effects global markets. Increase interest rates? Market no happy. Money printer go BRRRR? Markets BERRRY happy! Stock buy backs halted? NO HAPPY! These decisions are being made by a small group of highly wealthy individuals who directly see benefits from these world changing decisions they’ve purchased.
Record Levels of FUD
The level of fear & uncertainty surrounding this project is astronomical. There’s two groups, the ignorant and those who chose to take the time to do the research. This happens with every project when it’s catapulted into the limelight. Bitcoin once was seen as a get rich scheme, now everyone confides in it. Currently, Ampleforth is facing the same problem. Only time and education can resolve the fear, uncertainty and doubt.
I highly recommend you watch both the above and below videos. I believe you can conclude the level of genius between these individuals and what they’re trying to accomplish.
Supply, Meet Demand …
“Demand for currencies is volatile. Varying economic circumstances like recessions, booms, and technological advances, affect how much currency people want to hold. In the case of fixed supply currencies like gold, silver, and Bitcoin, these changes in demand are expressed entirely by changes in the value of the currency.
This means the volatility of demand translates into the price of anything denominated in that currency—including contracts and notably debt. For this reason, sudden shocks in demand can destabilize ecosystems supported by fixed supply assets. The greater the complexity of an ecosystem built on fixed supply assets, the greater the risk of cascading failure.
To address this shortcoming, we gave AMPL the ability to fairly and automatically adjust its supply in response to demand, without any need for a bank. AMPL was designed to be the simplest direct solution to the supply inelasticity problem.” – Source
In close, this project is still very much in its youth and the future is blindingly bright. This is the first time we have had a technology such as Ampleforth in the crypto ecosystem and it’s simply ground breaking. Time will teach the ignorant, luckily you’re here right now experiencing Ampleforth’s explosive growth, congratulations. Seize the day.