Hi ZIMBOCASH community

Our sign-up process is in full swing. One of the most common bits of feedback we have had is: “I don’t understand how I can get something for nothing”. We talked briefly about this in our previous fireside chat but it’s worth a deeper dive.

To start off, let’s be clear – there is never a situation where you can get something for nothing. If anyone promises this to you, you should be concerned.

ZIMBOCASH is different. What you bring to the table is being part of the community. You get value if you join. And by joining you add real value to others in the community.

We will not now, nor will we ever, ask you to pay anything.   Once ZIMBOCASH is listed, you could trade it for a price but that will be between you and other people.

ZIMBOCASH grows in value based on the concept known as the Network Effect. When you have a currency system, it holds very little value if few people hold it and recognise it. But if many people hold it, it generates value purely because there are other people in the system who believe in it and adopt it.

It is similar to Whatsapp. When few people were using it to communicate, it had little value. But as Whatsapp has grown it's value and usefulness throughout Zimbabwe has grown. Wikipedia describes this with some interesting images.

Our goal is simple – we want a decentralised currency that is fixed in supply and a decentralised banking platform that people can trust. We will know we have succeeded when individuals on the ground trade between themselves using the latest exchange price as a reference. This is what the Network Effect looks like practically.

Compare this to other currencies

Have you ever wondered why you ascribe value to other currencies like the US dollar? They are pieces of paper without any specific usefulness. US dollars have value only because others within the global community see it as valuable.  There is a network of people who accept it. That Network Effect is very powerful in establishing the US dollar as a medium of exchange.

The problem with the US dollar – as well as all currencies such as the rand and bond notes – is that they can be printed by the central banks of these countries. In the last couple of years, the Federal Reserve in America has printed over US$ 3.5 trillion dollars. England, China, Switzerland, the Eurozone, Japan and yes, Zimbabwe, are all printing heaps of money.

This is why cryptocurrencies are such a revolution in money and banking. Cryptocurrencies such as bitcoin have provided a way of keeping a fixed money supply and having a decentralised banking system that can be trusted.

The power of bitcoin was that it was a fixed based currency and banking system but it has not yet been developed into a fully-fledged on-the-ground payments system (for several reasons).

The first cryptocurrency that develops an actual fast and scalable decentalised network between people in a geographic location will receive a lot of international attention – it is the next step in cryptocurrency payments. The power of that network will be in how many people are using the system.

This is ZIMBOCASH – a cryptocurrency that will be fixed in supply once the blockchain launches. It is only available to Zimbabweans who register. It is free to join. When you register you will each be allocated ZIMBOCASH. We’ll put ZIMBOCASH on an exchange so you can trade it and convert it easily into other cryptocurrencies.

Questions about the value of ZIMBOCASH

Here are some questions we’ve received regarding the value of ZIMBOCASH with our answers:

1. How did you decide on the ZIMBOCASH allocation for Zimbabweans who register?

ZIMBOCASH is a transactional cryptocurrency. It needs sufficient denominations to facilitate trade. This issue is highlighted by some of Bitcoin’s problems. At current prices, you would need to deal with fractions of a bitcoin to purchase items such as food or, for example, toothpaste. That gets complicated. We prefer more ZIMBOCASH in circulation and would rather have a higher cryptocurrency supply with a lower unit value than have fewer at a higher value. This reduces over time, however. Each quarter, the amounts allocated to Zimbabweans halve.

2. What will the final price will be?

We do not know what the market price will be. We are exploring an initial listing price based on various factors, but the market will then decide the price based on supply and demand.  We are less concerned about what the final price will be and more interested that there is a price – once it has been listed on an exchange. The ZIMBOCASH community will gain by having a currency to trade with, as well as, the actual value of the ZIMBOCASH based on the listed price.

3. Are you giving a guarantee about the value of ZIMBOCASH?

We are not providing any guarantees. ZIMBOCASH is an exploratory project. Once it is listed on an exchange, we believe it will attract local and international attention, but we cannot provide any guarantees. It is the community that needs to embrace and adopt ZIMBOCASH. Whatever the case may be, our focus is to develop ZIMBOCASH as a transactional currency, rather than a mechanism to access foreign resources and our energies will be focused on this. For this, we are requiring that before anyone can buy or sell on the exchange, they need to have transferred ZIMBOCASH six times to or from other people.

We hope that answers your questions on pricing. We’re listening, so please let us know your questions in the blog post on the web, on facebook, twitter or linkedin.

Remember that ZIMBOCASH is yours to own and manage. If you grow the community, it has value for everyone. This is a movement that could change Zimbabwe. As part of this, we will be launching a community program where people can become ZIMBOCASH Ambassadors, which we will keep you posted on.

Until next time, warm regards

Philip

My name is Philip Haslam. I am part of a broader community of people around the world working on ZIMBOCASH. My background is in economics and finance and my role in the team is to connect with you. We’re sending out regular Fireside Chats to keep you informed – feel free to unsubscribe from these below. It won’t affect your registration with ZIMBOCASH.