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Stablecoins: The Price Volatility Solution In The Cryptocurrency Market
What are stablecoins? Is Stablecoins the solution to the rampant price volatility in cryptocurrencies? This is the question in every crypto investor’s mind. Stablecoin cryptocurrencies development is key in regulating the high price volatility experienced in the cryptocurrency market. Traditionally, the prices of cryptocurrencies have been very unpredictable. This has made them unreliable for both the users and merchants. As the name suggests, Stablecoins have a consistent valuation. To achieve this, their prices are usually pegged on an existing financial asset. Examples include; Normal Money (Dollar, Euro) Commodities (Gold, Silver) Cryptocurrencies Commercial papers This means that their price correlates with the asset valuation. Pegging up their value reduces volatility. These…
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What Are Cryptocurrencies? Examples, Pricing, Uses, and Regulations
Cryptocurrencies are becoming common in the financial world. There is a likelihood you have already come across it and if not yet, you will soon. It first came into the limelight in 2009 with the launch of the first bitcoin white paper. The paper described a new form of currency created through blockchain technology. This currency would be decentralized and uncontrolled. Very few people then had an understanding of the magnitude this innovation would have on the global financial system. Today, the cryptocurrency market is worth trillions of dollars and is available in almost all global countries. Cryptocurrencies exist digitally as digital money. They are not tangible nor visible. They…
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Tether (USDT), A Cryptocurrency Stablecoin Full of Success and Controversy
Since its launch in 2014, Tether has had a journey filled with a mixture of both success and controversy. Launched as a stable coin (cryptocurrencies that are pegged to the fiat currencies and commodities), Tether is currently the 3rd biggest cryptocurrency in market valuation. It is also the most successful and largest stable coin. The creators of Tether envisioned developing a cryptocurrency on top of the bitcoin layer. After its creation, it was pegged to the dollar at the rate of 1 USDT: $1. Since then, Tether has mostly maintained this value to date though occasionally there are slight deviations. Initially, it was known as “Real coin” however, the name…
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