How is it going to work? Our BTCsc will store value with the use of the original cryptocurrency (BTC) and the value will be pegged to USD. We simply use the BTC as collateral when creating a short derivative contract. By doing that, we achieve near perfect hedge ā and the last obstacle for the rest of the world to adopt crypto will disappear. By doing this, we have successfully created a stablecoin that maintains a value. Should the price of BTC (worth 100$) go up by 10 %, we earn 10 $ because we own a BTC and at the same time we lose 10 $ in the short position. If the price of BTC goes down by 10 %, we lose 10 $ on our BTC but gain 10$ on the short position. Either way, the original value remains unchanged. We find ourselves in a hedged position.
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