Cryptocurrencies could be quite problematic, but continuous innovations have paved the way for new generations of e-coins to come. Various problems of cryptocurrencies have been solved as well; thanks to the revolutionary stablecoin which takes the lead against volatility and other crypto-problems. You just got to check out Kinesis for more about this new cryptocurrency and read their article on stablecoins to get up to speed with the trend.
Knowing Stablecoin and Its Potentials
Volatility is certainly the largest crypto-problem that branches out to more issues concerning security and functionality of cryptocurrencies. This is not just about highly unpredictable fluctuations after all, but about the low practical usability of cryptos as well. In fact, such a problem is often cited as one of the biggest reasons why cryptos couldn’t completely replace real currencies; even as mere alternatives.
Thus, innovations are done to deal with such concerns. As a result, stablecoins came to life, which finally brought volatility to a halt.
What Is a Stablecoin
A stablecoins is a cryptocurrency that leans its value over real-life counterparts, either fiat or solid commodities. Just like the Kinesis Stablecoin, for example, its value depends on the value of real-life gold and silver. Kinesis has the so-called KAU and KAG coins, which are equal to 1 gm of gold and 10 gms of silver respectively.
Attributes of a Stablecoin That Make It a Potential Currency
Developers have noted a few attributes of stablecoins that make them a good alternative foreal-lifefe currencies. These attributes are:
Stablecoins are stable cryptos. Their value does not simply fluctuate dramatically, thus making them far more predictable for investors and users. This makes it far less risky to use for an investment as well, which could be an advantage despite of their slow value increase.
Kinesis notes that stablecoins are far more functional than usual cryptos. Their article on stablecoins shows that these are usable on daily transactions, simply because of their measurable value.
As a rough comparison, common cryptos can suddenly fluctuate in a few minutes. Say, a person uses a $100 worth of crypto to buy a gadget of the same amount. The seller could suffer a significant loss when the value of such crypto drops before he could exchange it to dollars. On the other hand, stablecoin can promise to avoid such issues because its value will never dissipate in a snap.
On legal economic perspective, stablecoins are also far more controllable than regular cryptos. Because of the stability it promises, government entities can regulate stablecoins without affecting its decentralized property. In fact, more and more countries, like Sweden, Russia and China, have developed their own national stablecoins for the public to use. Do not miss a good stablecoin article for this fascinating info.
To simply put it, you can see stablecoin as the marriage of cryptocurrency and real-life money. It deals with the problems of both currencies efficiently, whilst optimizing the good points for bigger benefits. This makes it a big potential to be a vital alternative for real currencies. Thus, you should know more about stabledoins for you to start investing and using.
You can check out Kinesis.money and read their article on stablecoins. You will have ideas on how you can invest in them and acquire their perks.