BitBay

Digital currencies are known for big fluctuations in value. At times as much as several hundred percent in just a few days. For investors, this may be exactly what they are hoping for, but for consumers and merchants that want the advantages that digital currencies can provide, volatility can destroy commerce within the marketplace. Bitbay will therefore freeze and release coins to keep the price stable relative to US $! This completely eliminates volatility. Your funds will stay stable and grow!

Fiat currencies show a long history of failed pegs. This is not because pegging in itself can not be done, but because of the huge consequences of maintaining a peg that is not matched by economic realities. The value of a currency directly affects unemployment rate, tax systems and so on. For Bay it is a little easier. We only need to consider stability, effect for consumers and merchants, and investor reactions. That said, we don’t aim to have a peg that stays at the same level forever. What we want to do is to take the big fluctuations out of  digital currency. This concept is known as a rolling peg. A rolling peg provides the short term stability that is needed to generate a thriving marketplace for commerce, yet still supports a free market for investor exchanges.