Bitsun Cryptocurrency Demand Drivers
Demand drivers for BitSun tokens
Currency speculation: This is a fickle and volatile market segment whose interest rarely extends beyond currency trading. The level and duration of demand for the currency form this sector is difficult to forecast and predict. This is also called “animal spirits” and refers to investors making decisions based on the behavior of other market participants and their own intuitions, rather than hard analysis.
Global Grid Buy & Burn: The demand from the company itself lies in its Buy & Burn program. Announcements on the quantum and timing of these programs has a direct impact on the amount of currency in circulation, market capitalization and ultimately price per token.
Demand from Energy Producers: Energy producers, prosumers and retailers who which sell their energy production on Global Grid’s LORA energy exchange, and to do so will need to possess BitSun tokens to a value commensurate with the amount of electricity they wish to sell. Currently for every MWh of electricity sold the seller will be required to own and stake 1,000,000 Bitsun tokens, this amount will change depending on the market value of BitSun tokens.
Demand Response Programs: There are more ways to generate value from demand response than ever before, but so far that hasn’t translated into a significant market. Global Grid is developing new Demand response technologies and programs to the point where value can be captured at the customer, distribution and wholesale levels, to reduce the gap that exists between the amount of available flexible capacity and profitability margins. As these programs will be executed in Bitsun coins and exchangeable for either electricity or fiat it will create an additional real-world market for Bitsun coins.
Demand from Renewable Energy Project Developers for Security Deposits: Construction contracts commonly require provision of bank guarantees and the like to “secure” performance of a party’s obligations. Typically, these are provided by contractors (or subcontractors) “upstream” to assure performance of construction and defects obligations, as well as in circumstances where there has been pre-payment for long lead items or where materials paid for by the principal / head contractor are being stored off-site. However, security is not exclusively provided “upstream”, it may also be provided by the principal / head contractors “downstream” to secure their (typically payment) obligations.
While security may take the form of cash (such as via retention), for larger amounts and for reasons of cash-flow, security is commonly provided by way of bank guarantee or insurance bonds.
Renewable energy and infrastructure Projects (www.globalgrid.io/projects ) developed under Global Grid + will require security deposits to be executed in Bitsun tokens and deposited into staked crypto wallets these will be time locked for the duration of the project development plus the post construction defects period of up to twelve months. The wallets will generate Bitsun coins by mining P.o.S. , additionally the coins in the wallets are removed from active circulation and trading, in the exchange markets for periods of up to two years thereby creating upward price pressure on the remaining actively traded coins.
Demand to participate in BitSun Mining: Because Global Grid generates new coins by using proof of stake algorithms and hardware oracle data we are able to attract more users to the system while at the same time keeping our processing fees low. The success of generating new tokens will be calculated using a combination of the % total stake in the economy and the % of total energy generated in the economy, weighted against the time the tokens are held in staked wallets.
The mining process will not generate more that 3% new coins into the economy and will keep the inflation rate at approximately 2.4%.
Staking also reduces the volume of actively traded coins and creates upward price pressure on the tokens, this is more pronounced at time when large energy projects are seeking Bitsun security deposits and when Global Grid is purchasing tokens for it buy & burn programs.
Each block mined will creates 155 fresh BitSun. Under the current block process time, a block is mined every 60 seconds, and there are 31.5m seconds in a year (365x24x60x60), this means 525,000 blocks are mined per year. 525,000 blocks at 155 BitSun per block = 81,375,000 BitSun generated per year. This meets the commitment of less than 3% of the total pre-mined 3,383,750,000 Bitsun tokens.
Demand for Crypto Portfolio Diversification (Breaking the Bond):
The combined effect of the various (real world) market mechanisms as drivers of Bitsun value serves to break the bond between Bitsun and the other crypto currency coins. Most crypto currencies especially mature ones tend to raise and fall in unison with a correlation co-efficient of 0.7 and above.
Correlation amongst assets is the degree to which they move in tandem. The values range between -1 and +1, where a value of -1 means that the returns move in opposite directions.
By linking Bitsun to real world demand markets we intend to break the bond, between Bitsun and other crypto currencies and offer an alternative for greater portfolio diversification, and increased risk dilution.
Demand from the Energy Market & the stable Joule token
As the BitSun currency is at the heart of all activities occurring in Global Grid economy, and the Solvency Equation for all transactions is simply one unit of Local currency = 1 Joule. We are able to remove volatility from the stable token, while still allowing for a floating exchange for the BitSun currency, by eliminating the volatility associated with using crypto currencies for real world applications we are able to avoid the $100,000,000 pizza scenario https://www.businessinsider.com.au/bitcoin-pizza-10000-100-million-2017-11?r=UK&IR=T
Real world market use of the BitSun currency will drive demand independent of price or crypto investor sentiment and will create a floor for the currency during bear markets or troughs in the price cycles.