Stablecoins as better money.

The first stablecoin, BitUSD, was launched in 2014 on the Bitshare blockchain. It was another significant innovation that gives more confidence to crypto traders, investors and general users. Stablecoins provide more for people to use cryptocurrency without the thought of profit or loss.

I wrote a post a few weeks ago where I discussed why cryptocurrency may not take over from fiat fully because none of the past means of transactions took over fully from the ones that were previously used. However, they reduced the rate at which they were used significantly. I did not consider stablecoins in the post. I just thought of the volatile assets and why some companies may have issues with them. But considering stablecoin, which is the same as the dollar but only in digital form and moves through the blockchain, which is even a well-secured channel.

Today, stablecoins are a major part of the crypto industry. There are 4 types of stablecoins.

1. The algorithmic. Which is based on algorithms, backed by blockchain protocols.

2. Fiat dollar-backed. This is based on the number of dollars in a vault in the companies issuing it, with more money in the vault, more coins will be issued

3. Commodity-Backed Stablecoins like gold.

4. Crypto-Backed Stablecoins. This uses other cryptos as collateral.

During the time I teach crypto in a firm, I used stablecoin as a haven for traders and investors to stay away from the volatility of other assets. Companies would also prefer to use stablecoins for transactions than other volatile cryptos. Bitcoin opened the gate for cryptos, but the future is bigger than Bitcoin alone. Stablecoins might be more accepted than Bitcoin in the future.

Stablecoins are growing exponentially in adoption. Today we have over $130B in capitalization.

Why stablecoins are better for transactions?

Payment and simple calculation

0.1btc is not the same every day, but $1 remains the same. The volatility of BTC, BNB, ETH and the rest make it great for trading and investment, but the majority of people do not want to get paid with a currency that can drop off value any minute. Despite that, I am a Bitcoin evangelist, I still transact more with stablecoins than BTC.

Easy way to have a dollar.

A friend opened a dollar account here, and the bank was messing with the funds in the bank with transaction charges and baffling policies. Now she has the money in stablecoin and could use less down a dollar for transaction fees to move it to anyone or anywhere. Using hive blockchain is even more amazing because of the free transaction.

Many people trade on FX and claimed to invest in dollar but that was 95% speculation on the price of dollar than buying dollar. Now, anyone in the world can invest in dollar and hold a real dollar value. It is a great time to be alive. Stablecoins will grow even more. They will spread to every nook and cranny.

Thanks for reading.

_{Michael B, A.K.A Tykee, I am a software developer, writer and blockchain enthusiast. I write about finance, programming, tech and lifestyle. My contents are my opinions}