You’ve most likely seen how common cryptocurrencies such as Bitcoin and Ethereum have been in recent years. However, if they are the only form of cryptocurrency you are familiar with, you might be shocked to learn that there are thousands more.
Stablecoin is a form of cryptocurrency that is becoming increasingly common. Stablecoins have many advantages in the crypto world, and they address some of the problems that other currencies have. Most importantly, there’s the issue of uncertainty. Let’s take a closer look at stablecoins to see why they’ve become so common and why they’ve filled such a significant gap in the crypto sector.
Stablecoins are a form of cryptocurrency.
Although most stablecoins fall into the category of fiat stablecoins, there are four different forms of stablecoins accessible. The value of these coins is backed by the value of a fiat currency, such as the US dollar or the Euro.
Other stablecoins exist, such as commodity coins, crypto-tethered coins, and algorithm coins, but fiat coins are the most well-known at this time and have the most potential for mass adoption. They’re also simple to grasp and handle for those who are new to cryptocurrencies in general or who have been put off or puzzled by the instability of other currencies.
Fiat stablecoins, in general, act as a link between digital currencies and legal tender, allowing holders to reap the benefits of cryptocurrencies while avoiding some of the uncertainty.
What is the appeal of stablecoins?
The volatility of currencies like Bitcoin is a significant disadvantage. Every single day, prices can change by up to 30%. This means that payments made today could cost significantly more or less by the time they’re processed in a day or two.
This does not inspire faith in those who invest in them. The majority of major cryptocurrencies are regarded as properties or investments rather than secure currencies. Why would you spend your ETH on food or an online service now if you think it would be worth a lot more in a week?
Stablecoins fill this void. They’re pegged to the value of another currency, usually a fiat currency like the US dollar. Since these currencies are less volatile, you won’t have to think about how much anything will cost in the future.
Tether, USDcoin, and MakerDAO are all common stablecoins, as is SameUSD, a relative newcomer to the crypto space.
SameUSD is poised to become one of the most common stablecoins in the crypto space as part of the Samecoin ecosystem. SameUSD is the ideal choice for those who want to profit from quick transfers, low fees, and other advantages of a digital currency without the risks associated with volatile coins like Bitcoin.
SameUSD is backed by a basket of USD-backed stablecoins, making it one of the safest and stable stores of value ever. It’s ideal for online transactions because it combines the advantages of crypto and fiat into a single digital currency with the slightest uncertainty and danger.