[Hilarium ICO Talk] Value Evaluation Model of Cryptocurrency 2

Hello Everyone, this is Chris Kim from the HILARIUM FOUNDATION. 

In the last post, I explained how the inherent value is determined by
the cash flow, and the social value is determined by the supply and demand 
of the market. 

http://hilariumfoundation.blogspot.com/2018/06/hello-everyone_1.html

Understand the nature of cryptocurrency and the basic concepts of 
what values are being created will really help you in participating in any ICO.

The characteristic of currency, which we commonly call money, 
is that as the economy grows, its demand increases. 
Then, the volume of currency is adjusted by the currency policy.

The currency supply is managed by controlling the rate of currency distribution 
with the interest rate and the main currency of the central market. 
The increase in the volume of currency and the speed of distribution mean 
an increase in the overall money supply and inflation.

This is the reason why the bus fare is more expensive now than it was 
10 years ago.

The inflation monetary policy of the government lowers the currency value, 
making prices to continually rise for the same goods and services.
This reduces the value of the assets by decreasing the purchasing power 
of money holders.

The case of cryptocurrencies, however, is different. 
While they also have some inflation factors like mining, the increase in the 
amount of currency is limited and a credit-generating effect like existing 
currencies does not exist. 
When the demand for a certain cryptocurrency increases, 
the value of the currency increases instead of the volume of currency supply, 
leading to increase in the market price.

 

For instance, when Hilarium’s Reward Business Platform creates social value 
and expands the number of users, the price of Hilarium Coin increases. 
As the supply of Hila Coin is limited and the demand increases, the market will value the Coin more highly. 

Using such nature of the deflation currency, Hilarium is preparing a virtuous 
cycle model that will lead to a significant rise in value.

If you are interested in ICO, please keep an eye on how Hilarium’s philosophy 
and business model are distinct in terms of their approaches.