Thinking about Prime flexible Finance

prime
3 min readDec 15, 2020

Through the previous introduction, we have a good understanding of prime( https://primematrix.io/ )Now that we have a general understanding, let’s talk about a new topic, thinking about prime flexible finance. What about flexible finance? The most valuable word in this is flexibility. Flexibility can provide a buffer. Imagine, if you establish transaction pairs between prime and various currencies, there will be many forms of buffering:

  1. To achieve the balance between the trading pairs and achieve the global balance;

2. At present, there is only one price dimension, plus one quantity dimension, and the room for maneuver with two dimensions will certainly be greater than one.

At present, almost all currencies are of constant price variable, while prime is a double variable of price and quantity. From one dimension to two dimensions, although it is complicated, it also provides more functions. The biggest value of this kind of two-dimensional currency is not to make the total value more flexible, but to provide the maximum buffer through flexibility to achieve the global balance. This is the author’s understanding of flexible finance. Of course, this is certainly only a small part of the value of flexible finance.

At present, the difficulty of price volume double change is that, as collateral, the price and quantity must be calculated at the same time, and the quantity is variable once every 24 hours. There is a time difference in this. To achieve synchronization, the existing system must be coordinated.

The author thinks that there are at least two values of flexible Finance: 1. The negative correlation between the supply and bitcoin; 2. The fluctuation of local prices. Therefore, the purpose of flexibility is not to attack, but to provide a cushion for the whole blockchain economy.

On the other hand, if the market value of prime is large enough, such as $1 trillion, its own volatility will be reduced, and the market value may not have the same big amplitude as it is now. At the same time, because of the change of quantity, it will reduce the mentality imbalance of later holders. After all, the money in hand can be split and empowered, which is an excellent marketing method.

Among the current blockchain projects, only one out of 1000 really understands the nature of money, especially since blockchain currency is a new species, and historical experience is even a barrier. Traditional currency is not difficult to understand, but it requires a lot of imagination and cognition to invent a new high-dimensional currency. As we all know, one of the pain points that affect the widespread use of bitcoin is the mining cost, while prime is almost zero cost. It is truly decentralized elastic currency, which is real faith. It is unprecedented that belief and currency are fused together by technological means, and the process of civilization is influenced by the extremely high granularity of time and value. It can be said that prime is a great economic experiment. Once successful, its value is immeasurable. Therefore, we look forward to that day!

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