What is a currency worth?
Recently, my attention was brought to a new financial instrument that has much potential. Many of us plow in the field of money. We all feel that the system we live in is broken and we search for a new definition. One has submerged, cryptocurrency. Another instrument is moving in, the Q.
The what? What am I talking about?
The value of a currency is affected by multiple factors. The equation of exchange introduces the “velocity of money”, defined as the total expenditures (or income) in that currency, divided by the money supply (the total amount of currency in circulation). The world’s total economic activity is around 100 trillion US dollars.
The total amount of money in the world is between 40 and 90 trillion dollars (depending on the definition of money). This gives a global average velocity of money of around 2, which indicates that each unit of currency changes hands roughly twice a year. In other words, at any given time people hold money balances equal to around half a year’s worth of income (or purchases).
Therefore, in order to estimate the value of all Qs, we need to estimate the volume of transactions on the network as well as the velocity of money.
Volume: The global volume of credit card purchases is over 20 trillion dollars annually. Since Initiative Q's unique distribution method solves the adoption problem and opens the gates to many new payment technologies, buyers and sellers will prefer it to credit cards. Q retail volume is thus projected at 5-20 trillion dollars, assuming successful worldwide adoption.
Velocity of money: In the long term, Initiative Q’s goal is for Qs to be used as a primary currency, meaning its velocity should be similar to the global average of 2. This goal will be achieved by financially incentivizing the use of Qs for all types of transactions, including wholesale, salaries, and investments. Additionally, Q will have a target inflation rate of zero, making it more attractive as a long-term holding compared to standard currencies (which usually lose over 2% a year to inflation).
Dividing the economic activity estimate in the event of successful market adoption (5-20 trillion dollars) by the velocity estimate (2-12) results in a total value of between half a trillion to 10 trillion dollars.
A cryptocurrency comparison
An alternative approach to estimating the value of Qs is by studying the cryptocurrency market, which is another attempt to create a new currency. So far, cryptocurrencies have failed as currencies. Their focus is on ensuring scarcity (i.e. that no one can easily generate new coins), but they neglect stability of value and ease of use. This makes them ill-suited for trade, with nearly all activity fueled by speculation.
Despite these shortcomings, the market value of cryptocurrencies reached nearly 1 trillion USD. It is not far-fetched to assume that a currency that is designed to meet the market’s true needs (stability of value, ease of use, etc.), and is exclusively coupled to a superior payment network, should surpass this number.
Value of one Q … Q=$
The Q rewards reserved today are from a supply of 2 trillion Q. This means that of the rewards would be available for use at a rate of one USD when all Qs reach a value of 2 trillion US dollars, a realistic estimate assuming wide scale adoption, as shown above.
What has it to do with you?
The Q initiative has the potential to influence your life in the way the automobile has change our society.
Initiative Q is an attempt by ex-PayPal guys to create a new payment system instead of credit cards that were designed in the 1950s. The system uses its own currency, the Q, and to get people to start using the system once it's ready they are allocating Qs for free to people that sign up now (the amount drops as more people join - so better to join early). Signing up is free and they only ask for your name and an email address. There's nothing to lose but if this payment system becomes a world leading payment method your Qs can be worth a lot. If you missed getting bitcoin seven years ago, you wouldn't want to miss this.
To get more info about Q, https://initiativeq.com/invite/HZ2w7hAs7
If you sign up using my link, let me know.