Stabilizing & Leveraging Your Token
Leveraging is the process of taking out debt to purchase an asset believing that the after-tax savings will be greater than the borrowing. The concept of leverage is used by both investors and companies. Investors use leverage to significantly increase the returns that can be provided by an investment. For example, on a commercial property, a couple may take out a bank loan of 60% of the house's
market value believing this will ultimately lead to cost savings. The cost savings would arise from the couple being able to decrease their income tax because the interest expense would be subtracted from their income before their income tax is calculated. Leveraging would cause gains made on this commercial property to be multiplied. Say, for example, the house of a couple doubled from 1 million dollars to 2 million dollars. When selling the house, the couple would only need to pay back 600,000 plus interest while profiting off of 1,400,000, which is much greater than the possible gain they would have made on appreciation if they had not borrowed.
By acquiring a CB token, you stabilize your current cryptocurrency base. This stable base of CB tokens will give your business underlying intrinsic value. It is very similar to a bank having gold reserves in order to invest in something safe to guarantee deposits. With this stable base of currency, you will also be able to leverage your CB token in your Crypto Banque wallet. This will allow your business to benefit from the tax advantages of taking on debt and allow you to benefit off multiplied returns.