What is DAI & what makes it a good coin?

What is DAI & what makes it a good coin?

By Mabla | nick07 | 3 Jun 2020


It is a decentralized stable coin and it operate on Ethereum blockchain which makes it stable and maintains its price of $1 per coin. It is almost the same as USDT but the only difference is that it is not backed by any fiat traditional currency e.g. US dollars or Euros but its backed by collateral on Maker.

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Is it a good coin to hold?

Just like USDT DAI is safe to hold as it is not volatile like other crypto coins, it maintains its value of $1 though sometimes there are small changes here and there. Since it is a token of Ethereum ERC20 its value of $1 remains the same. It has 6million coins currently circulation which is a small number but those amount of coins whether they increase or not it will never affect the value of the DAI value.

Currently DAI has a small capitalization of 9Million and 24hr capitalization of $1k which is very small as compared to Tether(USDT) but that doesn't make it an inferior coin.

Slowly and effectively DAI can manage to penetrate the market and become number 1 crypto to be accepted worldwide as a payment method for specific reasons:

  • Decentralized
  • Stable coin
  • Constant and stable value

If one had a business and looking for a number of coins to accept as payment method i am sure DAI will be the best as it is not volatile, you will not loose money as it happens when volatile cryptos fall drastically

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