Thread by @CrypConsigliere

1/ A Legitimate Competitor to BTC as a Digital Store of Value?

Came across this in the Financial Times this afternoon: a stacked group of economists, investors and financiers is looking to launch a cryptocurrency that functions as a non-volatile store of value – Saga (SGA).

2/ I just read the Saga white paper and I have to say I’m sold. It isn’t ICO-ing at all so this isn’t me shilling – I just think we are seeing the beginnings of a cryptocurrency that outperforms Bitcoin as a store of value.

3/ SGA is as close as it gets to digital gold for institutional investors and other investors looking to protect value. Backing by reserves deposited in a basket of fiat means low volatility. It removes anonymity meaning it will largely comply with any regulatory frameworks.

4/ It also allows the holder to directly sell SGA back, solving the liquidity problem.

With a team founded and backed by leading academics (a Nobel laureate!), VC investors and finance industry power players – this looks like the institutions’ answer to BTC.

5/ The only department lacking big names is the development team.

SGA isn’t for everyone – it is poison to traders. It is also useless for anonymous transactions. Tethering to fiat currencies may also mean it is more correlated with other investment products than BTC.

6/ I believe it is very clear in its purpose at this stage – to create a digital asset which is as close to ‘digital gold’ as possible and appeal to institutional investors and other high-net worth individuals who like the idea of ‘digital gold’ but are fearful of volatility.

7/ In relation to this use case (digital store of value for the investor classes above), I think SGA outcompetes BTC. It is digital gold for the non-retail and risk-adverse investors.

I am quite excited to see how this develops. For more information: saga.org.