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Stablecoin: Advantages And Disadvantages

Published 1 year ago by admin

Stablecoin: Advantages And Disadvantages

Bit.News via

The special kind of cryptocurrencies — stablecoin became one of the most successful and perspective versions of the decision! Practice has shown that it is impossible to fence off completely from fiat currencies: the rate of any cryptocurrency is determined primarily by the value of the currency, most often by the dollar. At the same time, it became clear that not only the dollar can be the key to the cryptocurrency stability - it can become any traditional valuable asset.

So there were ideas about the binding of cryptocurrency to gold, oil and other assets that had long settled with the traditional economy. In other words, stablecoins are a kind of cryptocurrencies which for 100% are provided with this or that traditional valuable asset. Unlike conventional cryptocurrencies, whose price is determined in many respects by abstract factors and therefore highly variable, stablecoins are completely bind to the value and rate of the asset that are provided, so they have a stable rate.

The founders reported that the mastercoin protocol will allow the binding of the cryptocurrency to a stable traditional asset. Another scenario is possible - when the development of stablecoins will go further along the path of transformation into digital money the most stable traditional assets. And who knows, perhaps a reliable stablecoin, recognized by both the crypto community and the traditional economy, will be able to become Bitcoin's rival in everyday circulation, as, unlike him, will be supported not only by the advantages of blockchain technology, but also by real value. Coin spectator is an automated news aggregation service. All copyrights belong to their respective owners. Images and text owned by copyright holders are used in reference to and promotion of those respective parties. Read in Full

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