Volatility in the bitcoin market has two drawbacks. While it has the potential to yield enormous profits, it also carries the risk of causing investors to lose their money.
Examine the price of bitcoin. Its top price was $20,000, but during the bear market, it dropped to less than $7,000.
Additionally, volatility keeps cryptocurrencies from becoming widely used. Because of their unstable price, investing in them carries a very high risk. The cryptocurrency industry required stable-priced currencies to address this issue. And thus stablecoins originated.
Similar to fiat currencies, stablecoins are a class of cryptocurrency with a consistent price linked to an actual asset. Assets like as fiat money, oil, or gold can be used to support a stablecoin.
Stablecoins gained popularity recently, particularly with people who dislike volatility. Thus, we have compiled a list of the most well-liked stablecoins for today’s blog post.
Now let’s get started.
The Most Contentious Stablecoin is Tether
Tether is the first stablecoin on our list. This well-known cryptocurrency has been the subject of numerous allegations and disputes. Among them are money laundering and manipulating the market.
Tether is still the industry’s first and most popular stablecoin in spite of this. Tether was first backed by a single US dollar, however in March 2019, it became clear that the stablecoin also had loans from affiliated businesses.
Facebook’s Cryptocurrency, Libra
In the cryptocurrency world, there has been a lot of excitement over this stablecoin. The cryptocurrency known as Libra is intended for use in the financial industry—more specifically, for online payments.
This stablecoin is linked to currencies that are issued by governments, including the USD, EUR, YEN, etc. 2020 is when Libra’s wallet is expected to launch.
New method of purchasing gold: Novem Gold
A stablecoin backed by gold is called Novem Gold. One 999.9 security token, which is its native token, is equivalent to.01 grams of gold. The startup wants to make it simple, safe, and adaptable for its customers to trade gold.
Currently, Novem Gold is offering 3 NVM tokens (about $2.50) as part of an airdrop.
TrueUSD is a Transparent and Regulated Stablecoin.
TrueUSD is a stablecoin that is correlated with the US dollar, much as Tether. It is more transparent and less contentious than Tether, though. The attestations of the company are available to the public for viewing.
The fact that TrueUSD is legally controlled and ensures ownership recognition is one of its strongest features.
Stablecoin MakerDAO is Tethered to another Cryptocurrency
A decentralized stablecoin that provides financial services is called MakerDAO. It was developed in 2017 and has Ethereum as support. You can borrow MakerDAO, a robust stablecoin, on your own terms.
Users can use cryptocurrencies with MakerDAO without worrying about market volatility, just like they can with other stablecoins.
Last thoughts on the list of the most well-liked stablecoins
Not just in the cryptocurrency world, but also in other sectors of the economy, stablecoins are growing in acceptance. The massive grocery and retail chain Walmart recently made hints that, taking a cue from Facebook, they are developing their stablecoin.
This spread good news throughout the blockchain community and provided yet another indication that cryptocurrencies will become widely used.
