Stablecoin - News, Opinion & Analysis

Stablecoin

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A stablecoin is a digital token that is pegged to a certain value, usually in a 1:1 ratio with a fiat currency like the US dollar. For example, the USD Coin (USDC) launched by Coinbase is backed by US Dollars in a 1:1 ratio. Most stablecoins in reality deviate from the $1 position ever so slightly, 

Most stablecoins are pegged to a fiat currency, with the US Dollar being a popular choice. However, some stablecoin ventures distinguish themselves by backing their stablecoins with other assets. 

An example of this kind of stablecoin is the well known MakerDAO ecosystem, which is a stablecoin ecosystem that consists of two tokens: the stablecoin DAI and the governance/utility token MKR. The stablecoins are backed by Collateralized Debt Positions which demand Ether as collateral. There is a complex mechanism in place to ensure that the token does not deviate from the $1 value.

Stablecoins have been ascending in popularity in discussion in 2019. This is largely because there is some consensus in the idea that stablecoins are effective in combating the volatility of the market. Since the value of these tokens remain stable, investors who use stablecoins do not have to worry as much about bear markets, and can use these tokens to make investments during these bear markets to gain profit.

As most stablecoins are pegged to fiat currency, there has been scrutiny on the finances of stablecoin issuers, who must confirm that they possess the reserves to back the total value of stablecoins. This increased scrutiny has led to calls for more audits and better transparency.


The Hype Around Reserve - A Stablecoin For Scaling Prosperity

26 Jun 2020 4 minute read 7 comments Cryptonator`s Airdrop Hunt

Reserve is a decentralization project that has not so much talked about in the past month but now the hype around Reserve is getting bigger and bigger and indeed. A whole host of big names have invested in this project. For example, coinbase has inve...

USDC Coin to Support More Blockchains, Starting With Algorand

25 Jun 2020 1 minute read 4 comments Abhi K

According to an announcement made on June 24, Circle and Coinbase backed stablecoin USD Coin (USDC) will begin to support more blockchains in the months to come, starting with the Algorand (ALGO) blockchain.  The Centre Consortium announced that it...

Federal Reserve Economists: Lawmakers' Worry About Libra "Overstated"

23 Jun 2020 1 minute read 1 comment Abhi K

In a report published on June 22, economists from the United States Federal Reserve have said that earlier iterations of Facebook’s Libra currency had induced an overreaction from lawmakers and that the worries were “overstated.” Garth Baughman and J...

This Week's Headlines in Cryptocurrency and Precious Metals you may Have Missed

21 Jun 2020 2 minute read 0 comments JP Buntinx

It has been a very interesting week for the cryptocurrencies and precious metals markets. A lot of things have happened or are still developing at the time of writing.  This Week in Crypto One of the biggest headlines this week is how 60% of the Bitc...

Are they crypto? Are they money? Stablecoins under the radar!

21 Jun 2020 5 minute read 1 comment Heruvim78

Stablecoins. We keep hearing this term, but do you really know what they are and how they work? I will try to explain the basics, so you will know better how to deal with them. While Bitcoin provided the ground for the crypto-market, with all the tec...

⭐️ What is the best StableCoin?

20 Jun 2020 2 minute read 1 comment resiliencia

Hello! I did a quick research about Stablecoins. I want to know which is the safest crypto to store value if I don't want to convert it to fiat. Many will say that the best crypto to store value is Bitcoin itself, but I want to store the value when I...

Stablecoin alternatives to USDT - What are They & Should You Use Them?

19 Jun 2020 6 minute read 11 comments D3F1

Cryptocurrencies are extremely volatile, there’s no question about that.  Price swings of 10% or more in a day are not uncommon and this extreme volatility can provide traders with lucrative opportunities.  However, cashing out crypto to fiat only to...

Earn 11% Interest On Stablecoins @ Bank of Hodlers

19 Jun 2020 1 minute read 0 comments MrBitcoin

Earning With Stablecoins and more. https://app.bankofhodlers.com We provide 11% interest on all our supported stablecoins - USDT, USDC, TUSD, PAX, BUSD and DAI   Stablecoins are cryptocurrencies that are pegged to an external reference, with the mos...

Will Bitcoin replace the current traditional payment system?

17 Jun 2020 2 minute read 0 comments Mabla

At beginning of the bitcoin Era around 2010 2 pizzas were bought with 10 000 bitcoin. since bitcoin was claimed to be capable of replacing the current traditional payment system and it proved it can then that’s when people started to adopt bitcoin an...

What drives demand behind the Stablecoin $ 10 billion market capitalization milestone?

16 Jun 2020 2 minute read 0 comments PassionCryptodotcom

The growth of stable parts in 2020 is unlike anything seen before. Every week more and more fiat-guaranteed crypto assets are printed, almost as quickly and as often as the Federal Reserve prints new cash. After the final boost, total stable market c...