In this post, I am going to draw your attention to 3 important point. First what is Stable Coin, what is inflation and lastly how stable coin protects you from inflection. Hoping you are ready let's start.
- What is Stable Coin?
- What is inflection?
- 3 Ways Stable Coin Protects You From Inflection
STABLE COIN: From the word stable, it will be easier for one to conclude that it means no shaking or trusted. Stable Coin is a Coin that is free from crypto volatality. It is pegged to US dollar which is stable. I stable coin is equivalent to $1. It goes with the price of dollar. There are over 200 stable coin in the market and there are top 10. Among these top 10 there are most popular ones like USDT, BUSD and others.
With Stable Coin it will be easy for you to buy any crypto using your fiat currency. For example i have naira, it will be difficult for me to buy Bitcoin direct but i can buy USDT first and then use it to buy Bitcoin. Stable Coin is friendly to Fiat and make it easier for trading, selling and buying of crypto.
Stable Coin is cheaper, faster, programmable and transparent , it is even borderless. You can buy it from so many exchange. So many coins is pared with stable coin. Stable Coin is useful in trading, payment, payroll, settlement, escrow and alternative banking.
INFLATION: Inflation comes in when the price of things is high. The value of your money will reduce. This affect both consumers and investors. For a consumer, your Money will buy little thing. Like in Nigeria now, fuel is costly from 160 to 350. Let's say you have been buying 5 liters at the rate of NGN 800, now it will be NGN 1,750. That is inflation.
Even an investor will be wise now not to loose money. You noticed that when it is like that some will not buy new goods waiting for the price to come down. And that can only happen when the demand is low.
3 ways Stable Coin Protects You from Inflation.
Stable Coin Protects or serve as a hedge against inflation. For example my currency is naira. If I have 2m NGN in the bank now, in the next 1 year, it will suffer inflation. The value will reduce why, what 2m can buy now, it will not buy it in the next 1 year but if I buy stable coin of 2m now, in the next 1 year, the value will appreciate. As i said earlier, stable coin is pegged to dollars so as dollar increases stable coin increase to.
Investors do not loose money in stable coin. You know crypto is volatile in nature so when they invest in it, their money is intact and appreciate too. Stable Coin is very good for long time holders or those who are new in crypto world. That fear that their money will go down as Bitcoin goes down will not be there.
For crypto trader, stable coin has helped them so much especially when crypto is very down. For example, before now, Bitcoin was $50,000 and now is trying to be $20 and past weeks it was struggling at $10. For big time traders who swapped their Bitcoin to stable Coin when Bitcoin was $50,000. They still have the value at that price. Even higher as dollar appreciated. Can you see how powerful stable coin is. That is why I said, it is programmable and borderless.
Do we have stable coin on Hive?
As i said before, there are so many stable coin in the market and the most popular ones is USDT. But i want to tell you that we have stable coin on Hive which is our HBD. It is also pegged to 1.1. the price goes with the price of dollar and it favours investors too. Not only that their money is intact, it pays them 20% annually as they stake it.
And the value appreciate too. Remember the example i gave before on 2m. If you invest 2m in HBD this year,go and sleep and see how your money grows exponentially. Yes as the the 20% drops every month, you reinvest it. You will be surprise what your 2m will be by this time next year. Stable Coin is a asset in crypto world.
Summary/Conclusion
In summary i have been able to explain what stable coin is and it's benefits in crypto economy. I have also explain what inflation is and how it turns your money valueless and lastly but not the least how stable coin serve as a hedge against inflation. I also told you that we have stable coin on Hive which pays investors 20% annually as ROI. So now, having know the importance of stable coin in crypto economy, you have to make your decision on how to invest your money.