Globitex : Scaling Bitcoin Economy

Globitex introduces a digital currency exchange allowing everyone to trade commodities and money market instruments for Bitcoin. The existing institutional grade Bitcoin exchange, with unrivalled API capabilities will scale into a global spot and derivatives trading venue. It will allow producers to purchase exchange listed products for Bitcoin, and trading firms and speculators to hedge their risks in Bitcoin with derivatives trading. This will therefore increase the use cases for Bitcoin as a medium of exchange and ultimately establish Bitcoin as a unit of account suitable for global trade, with no geographic, political or monetary restrictions.

Bitcoin and cryptocurrencies based on the Bitcoin protocol are here to stay. At its core, the Bitcoin protocol has the right formulae for it to become the leading universally accepted currency. Bitcoin already functions as a store of value and medium of exchange. But, in order for it to gain significance as a unit of account in global trade, it needs to scale both technically and economically.

This Globitex does not deal with Bitcoin’s technical scaling issues. Instead, this it aims to deal with the economic scaling challenges that Bitcoin must overcome. Bitcoin has displayed impressive growth, starting as an obscure open source project in 2009, and achieving a multi-billion market capitalisation, it is now receiving mainstream financial media attention. In order for Bitcoin to be even more widely adopted as a currency, and for the Bitcoin economy to play a leading role as a medium of exchange in global financial markets, it needs to expand in scale by orders of magnitude. At the appropriate scale, Bitcoin could be used to settle global trade in raw materials, such as precious metals, base metals used in manufacturing and various industries, consumables, like coffee, wheat, corn and energy products, like oil. At this scale, Bitcoin could gain significance as a unit of account by way of settling global high volume trades for regional and international imports and exports for production and consumption goods, with cash settled and physically deliverable instruments available for producers and speculators alike.

In order to facilitate the use of Bitcoin as an industrial scale medium of exchange, Globitex propose taking the existing Globitex exchange infrastructure and scaling it up into an exchange that has global spot and derivatives exchange capabilities, where standardised instruments in money markets and major commodities are listed with cash settlement and later physical delivery, and where Bitcoin is used as the underlying currency — a unit of account.

To realise this goal, Globitex is issuing the GBX utility Token. The Token will be issued as an EIP-20 (previously known as ERC-20) compliant Ethereum smart contract. The GBX Token will primarily be used for the settlement of trades on the Globitex exchange, serving as a commission payment token. The GBX Token will also function within loyalty programs planned for Globitex clients and contributors, whereby the contributors will be participating in the company’s overall success.