Today, cryptocurrencies are synonymous with uncertainty. A factor propagating this belief is their highly volatile prices. Take, for example, the case of Bitcoin. This digital tender launched by the enigmatic Satoshi Nakamoto is notorious for its very fickle rates that change without any prior intimidation. This is very notable in the bull run the Bitcoin experienced during 2017 where the price went from $900 to an astounding $20,000. Unfortunately, all was not well as in the following year as the prices crashed to $3000. However, is it possible to feature a cryptocurrency with a steady value? The answer is yes, and it can be achieved by using stablecoins.
A stablecoin is best described as a digital currency which draws its value from real-world assets or other fiat currencies or even a basket of cryptocurrencies. By pledging a currency against real-world assets, for instance, gold or other bullion helps “stabilize” its price. This is because these assets have an assured value and are acceptable by a wider audience. A popular example of a stablecoin is Tether that is pledged against the US Dollar.
There are many advantages linked to stablecoins. Some of them have been listed below:
- They are completely decentralized.
- Transaction records are stored on the blockchain in an immutable and chronological fashion.
- Most regulatory authorities recognize them.
- They can be liquidated easily.
- They are less vulnerable to hacks as the stablecoins are non-fungible in nature.
It is very easy to create your own stablecoin. Simply approach Blockchain App Factory, a leading company offering a wide range of stablecoin launch services. Their solutions are 100% whitelabel and can be customized to match your business requirements.