As part of my brand new, earnest foray into crypto, I have discovered the Gooddollar project. Apparently, G$ is a new stablecoin that uses the Fuse.io, an Etherium side-chain and is backed by Dai, a cryptocurrency that aims to keep its value close to that of the USD. Its purpose is to bring a universal basic income to the masses via cryptocurrency.

A Noble Goal

Andrew Yang's run for the presidency has brought to the masses the concept of a universal basic income, traditionally provided by the government, that would cover basic expenses. The idea is appealing, especially during this time of great economic upheaval, because of its no-strings-attached philosophy.

Unlike food stamps, heating assistance, etc., a UBI can be spent however the receiver sees fit. Pilot programs show that most people spend it on food, long overdue dental care, and things like that. Interestingly, employment also increases in populations receiving a basic income.

A universal basic income would allow people who can't enter the workforce, either permanently or temporarily, a means of survival. It would also make people less dependent on predatory payday loans and allow entrepreneurs to fuel their passions.

Fears

Of course, as the old adage goes, if it sounds too good to be true, surely it must be! Already, we can see what a stream of stimulus checks (not that I'm complaining about their implementation, being as poor as I am) has done to the value of the dollar. Inflation is on the rise, and experts warn now of hyperinflation. Within the Keynesian economic school of thought, this isn't necessarily a bad thing, so long as wages increase as necessary and the money goes back into the economy.

The problem is that if you look at inflation through the lens of the Austrian school of economics, it becomes a deadly cycle that ultimately all fiat currencies eventually succumb to. In fact, Bitcoin itself is traced back to the Austrian school of thought, hence its scarcity and the fact that it climbs in value whenever the dollar inflates.

UBI is attainable under the Austrian school if it replaces the current welfare system. That wouldn't depend on the money immediately returning to the economy and can be saved up for things like retirement, travel, vacations, emergencies, future education, etc. Unfortunately, replacing the welfare system with what, in my opinion, would be something more sustainable and has proven to help, not hinder, productivity in the way the current welfare system has (people fear losing benefits before knowing that they'll be successful) is still a difficult idea to sell to Congress.

Crypto to the Rescue?

Cryptocurrency is one of the most novel and important ideas of the 21st century. However, Bitcoin itself is used mostly as an alternative to gold. This isn't terrible, as anyone who follows Austrian economics is going to have a lot of confidence in gold and silver, but it does mean that Bitcoin is ill-suited toward becoming a UBI.

Bitcoin Cash, from my understanding of it, would be much better. It's meant to function as a currency, fulfilling the promise that the original folks behind Bitcoin made. The candidate that has stepped up to the challenge, though, is Gooddollar. The original white paper for this currency makes it clear that this coin is to be an income, free from government distribution, and able to supply basic needs.

This is a wonderful idea, but by being backed by the Dai, which seeks to mirror the USD in terms of value, it may not be as worthwhile to own as BCH.

Regardless, I've been getting my daily claims. I figure that even if it doesn't take off, it doesn't hurt me to start claiming it. I haven't staked anything in it as of yet, but as I accumulate more means, I may just to see how it goes.

Right now, it can only be exchanged for Dai using FuseSwap, and of the time of this writing 1 Dai is worth 8,000 G$. We all start somewhere, though, don't we?

I'm interested in others' thoughts on the project (whitepaper here), so please comment below and let me know what you think.