Cryptocurrency lover, antivirus pioneer, and 2020 US presidential campaigner John McAfee is going to join the growing number of cryptocurrency developers. In an official Twitter post on May 29, he revealed that his new digital token would add to the existing list of over 2000 cryptocurrencies.

He plans to launch his ‘McAfee Freedom Coin’ anytime this fall. His Freedom Coin is expected to be different from traditional currencies, assets, and exchanges in an attempt to reach the “Holy Grail of cryptocurrency” – economic freedom.

McAfee wants his coin to have all the ideal properties of a new cryptocurrency- “The McAfee Freedom Coin is designed to confront the problem of exchange head-on, using a unique paradigm and a new structural concept.

It is not based on any commodity, nor is it connected to the value or behaviour of any external item or entity. The value of the coin will always be zero in relation to any other currency, yet its natural market value is free, completely, to grow.”

Are existing cryptocurrencies ideal?

The new currency guideline is yet to come, but on the website, McAfee revealed that the coin would not be subject to relative price setting mechanisms of other fiat or digital currencies. When you buy a commodity or a service, it is priced in a local currency, say a dollar. Do you compare the value of the dollar against Yen or Euros while purchasing? No. You implicitly realize the value of the dollar in terms of what you know it can buy. And you are used to valuing commodities using the dollar as a reference point. You don’t have to compare the value of the dollar against some other measures.

Perception of dollar value comes from the price of particular goods or services that are known. Any price changes of those are noted in memory. Similarly, retailers don’t compare their goods to an external measure to fix their price every day.

The price is based on a balance between demand and supply. Sometimes it is called consumer’s value scales, which are vague comparisons. The general market of an item is subject to what options a consumer may have – substitutes, competitors, change in taste, or simply doing without. These are properties of a natural market.
The concept of cryptocurrency was actually based on the above example – a currency that people value for its purchase power alone.

There is no such currency until today because all goods and services cannot be purchased with cryptocurrency. In most marketplaces, you need to exchange the crypto with a currency that is accepted in the platform. It indicates that the value of the currency is not in the hands of consumers and retailers, but in the hands of a market that is operated through rumour, fear, greed, manipulation, and a variety of other economic factors.

But these conditions barely relate to the economy of the currency itself. So the cryptocurrencies out there are used based on the impulse of an artificial construct that controls the market.

How Dagcoin and ‘Freedom Coin’ are different

An ideal cryptocurrency should not be like this. Crypto world will achieve its primary objective, economic freedom, once the need for an exchange is eliminated. John McAfee is dreaming of a coin that is disconnected from both fiat and other cryptocurrencies have a zero cash-in value and are universally acceptable.

Also, the coin will be valued for its purchasing power alone. To achieve these goals, he has got some plans in mind. In a tweet, he mentioned that the Freedom Coin would not be launched through an ICO. Also, there would be no mining or exchange option.

We, here in Dagcoin, believe that cryptocurrency should be valued for usability and purchasing power as well. We are working towards a future where the price of a cryptocurrency is not determined by its value on an exchange.