What is the Inverse Mining™?
The Inverse Mining™ is VitBlock Exchange's new innovative business model which solves the biggest problem of inflation and gives rise to expectations that the price of all listed cryptocurrencies would increase.
Currently, we are applying for global patents in Singapore, the U.S., and Korea.
Inverse Mining Outline
Inverse Mining permanently locks up all cryptocurrencies received as purchase transaction costs whenever a trade occurs. This process consistently reduces the circulated volume of the coin, eliminating inflation and increasing the scarcity of the Coin, increasing its values.
The transaction costs which arise from buying and selling on a cryptocurrency exchange is divided into purchase transaction costs and sale transaction costs. Purchase transaction costs take an amount of coins from the respective cryptocurrency to be bought, whereas sale transaction costs take a cut from the fiat currency used in the transaction.
A SRCOIN/BTC trade will be used as an example. If both the purchase and sale transaction costs are 0.1%, the exchange will incur the following profits from the purchase and sale transactions.
As the 10,000,000 SRCOIN the exchange receives as the purchase transaction cost is permanently locked up, the overall circulation amount decreases, increasing the value of SRCOIN.
The impact of Inverse Mining may be small when it comes to a single trade, like the example above. However, if this is cumulated, a considerable volume becomes locked up, leading to an increase in price due to the scarcity. Furthermore, as the cryptocurrency project proceeds successfully and is used in real life, this effect becomes much more pronounced.
The Virtuous circle of Inverse Mining
One of the biggest features of Inverse Mining is that even though the trade volume or the price may decrease, as long as there is trade the locked up volume continues to increase. Thus, even if the price temporarily falls due to external factors, the following virtuous circle continues to operate; the reduction in circulated volume leads to the increases in price.