Yes, stablecoins are useful, and why you will end up using them
No bank, no problem — stablecoins are the future of digital transactions.
Minimize volatility, earn interest, and transfer stablecoins around the world. Easy enough, right?
What are Stablecoins and why are they needed?
Stablecoins are a type of cryptocurrency that has the value of another currency attached to it.
For example, USDC is tied to the US dollar, which keeps the coin’s price at a consistent rate.
Even the most popular and highly traded cryptocurrencies tend to undergo substantial price fluctuations.
In the last few months alone, Bitcoin rose to around $50,000 and has now descended to approximately $30,000.
The high volatility of these cryptocurrencies may lead to a greater acceptance of stablecoins for common transactions.
Since the value and purchasing power of stablecoins are retained, this opens a whole new door of opportunities for cryptocurrency transactions.
What Kind Of Stablecoins Are There?
There are three kinds of stablecoins — Fiat-Collateralized, Crypto-Collateralized, and Algorithmic.
- Fiat-collateralized stablecoins are backed by fiat currencies, which serve as collateral.
- Crypto-collateralized stablecoins are backed by other cryptocurrencies.
- Algorithmic stablecoins are based on an algorithm, which keeps the coin’s value stable.
Some of the most popular stablecoins are: Tether (USDT), USD Coin (USDC), Binance USD (BUSD), Dai (DAI), and TrueUSD (TUSD).
Are Stablecoins Safe?
Stablecoins provide a stable alternative to other cryptocurrencies, but be sure to understand the potential risks before purchasing.
If you’ve kept up with current events, then you probably heard about Terra and the UST crash.
The sudden disintegration — according to many — of the “ultimate stablecoin” started a widespread discussion on stablecoins, their relevance, and stability.
While the criticism is more than justified, we still believe in a future in which stablecoins will be a staple (no pun intended) in the financial game — and especially for you.
How does Decubate utilize stablecoins?
At Decubate, we’re in favor of stablecoins.
Decubate is a web3 software company that makes token management easy. Our no-code products enable projects to launch a token without any technical know-how. Visit www.decubate.com to learn more.