The Coffee Coin, a new cryptocurrency making waves in the commodities and financial markets is attracting growers, producers and traders of coffee. This promising currency has made an impressive beginning since it was launched early July with its goal to be accepted as payment for goods like any other legal tender. The World’s largest producer of coffee Brazil stands out from all others by being one of the first countries where this coin becomes available for purchase at grocery stores alongside normal currencies .
However there are some concerns that using Bitcoin could lead to inflationary practices which devalue local economies such as Venezuela’s recent move away from their national currency bolivar towards bitcoin (CNN).
What is coffee coin?
The world’s first cryptocurrency, Coffee Coin is backed by stocks of green coffee and influenced by investment demand. It was launched in the beginning of July 2021 with a value pegged to that of arabica-coffee market price but fluctuating according to investor interest. People can trade this coin at exchanges including StonoEx which partnered on the project soon after its launch date as part o their mission “to be an indispensable tool for retail investors.”
Who uses coffee coins?
The farmers of the cooperative can buy a cryptocurrency called coffee coins with their current harvest and future harvests. They could also use these tokens to purchase farm supplies or other goods from outside vendors, but they must have at least 1,500 kg worth before trading. Investors who are considering purchasing some acres for farming can trade in this currency as well; however, you will need just one lot of green beans (1,500 kilograms) instead.
Farmers among TFCCC’s membership base are given an opportunity to exchange 30% output against “coffee” coins that allow them access to exchanges for various necessities like inputs and merchandise while away from home markets where such things may not be readily available.”
Cryptocurrencies allow one to buy stocks of coffee with the push of a button. This could cause major change in Brazil’s economy and world coffee prices, as it is home to top producers. Cryptos are sparking interest among traders across the globe who want their piece of this booming market.
The future of Coffee Coin
In July, the first month since its launch, coffee coins have appreciated more than 35%. This is because they are linked to the market price of coffee. The value of other cryptocurrencies such as Bitcoin and Dogecoin can be influenced by speculation or tweets from celebrities at times which made them a less stable instrument for investment. It also has an advantage over many emerging currencies in that it’s backed up with physical assets (i.e., bulk-traded green arabica beans), so you don’t need to worry about inflation rates like some economies today experience.
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