UBU erodes, but can be traded for UBX, which I assume is a stable investment? Perhaps?
I can't quite determiine at this point if UBU/UBX is a South African entitiy, or do they aim at worldwide adoption?
You are viewing a single comment's thread from:
Those are good questions. There is a swiss address and a South African focus. It's so new that the jury must still be out
Posted using Partiko Android
@thekittygirl,
The UBU is designed very much like an "Option" (calls and puts) ... a contractual right to buy or sell something (like a stock) at a predetermined price during a specified timeframe. The value of such Option, however, erodes over time as the period in which it can be exercised gets shorter and shorter.
The "something" in question in this instance is the value of the coupon. You receive a $100 coupon today. Tomorrow it's only worth $99. The next day, $98. And so forth. So, it behooves you to cash it in now ... by buying something (with RAND or whatever other fiat currency is stipulated) so as to receive as much discount as possible.
But what if you don't want to buy something or you don't have the fiat to do so? Well, you could sell it but, because it's value is eroding so quickly, you'd have to accept a steep discount because whoever buys it will inherit its eroding properties. As a result, it can never be worth more than a fraction of its original face value.
There's nothing wrong with this. Indeed, it's an intriguing idea for retailers to consider. Calling it a "universal basic income" though is a bit misleading. If I gave you $100 per month, you could spend or save it as you liked with no constraints. With UBU, you need to spend substantial money (earned elsewhere) to receive its value (discount on a purchase).
Not sure.
Quill