Stablecoins are increasingly gaining a lot of popularity amongst economic experts. These are the latest digital assets, which are much more stable compared to cryptocurrency. Just like the fiat currency, they offer some level of stability to everyone who possesses them.
You can consider them as something that comes in the middle and has the best features of fiat and cryptocurrencies. Hence, in the World of volatile cryptocurrency and high inflation, stablecoins appear to be an ideal solution.
The recent fall in A Beginner’s Guide to Cryptocurrency value of Bitcoin has dwindled the trust of investors in it. It was invented some 12 years ago, and ever since it has seen a rise in its popularity. This decentralized currency was considered to be the best way to keep assets in digital form. However, over time, the volatility of this currency made people find new and other forms of investment.
Just like Bitcoin, Ethereum is also highly volatile and isn’t backed by a regulatory authority. This is when Stablecoins appears to be a much more reliable solution than volatile cryptos. They have the capability of being transacted and are backed by blockchain. The record-keeping for this form of currency is extensive, which gives it a great amount of stability. As Bitcoin miners need powerful computers, stablecoins doesn’t need one.
The OVEX exchange is the provider of a wide range of stablecoins in a lot of countries at the moment. Starting in South Africa, it is increasingly gaining acceptance all across the World. These coins, being highly secure and well-protected, are the base of the decentralized economic system.
The DeFi system is letting people find hundreds of ways through which they can invest in digital currencies. This is exciting as they can invest digitally and multiply their wealth easily. Furthermore, it has broken the shackles of the investors and they can finally look beyond the traditional banks.
Another reason why stablecoins are getting popular in some particular countries is their ability to let the citizens have a wider approach. Certain governments impose strict restrictions on their inhabitants when it comes to owning foreign exchange. With the help of stable coins, they are able to be a part of the international economic systems quite easily.
Having some passive income that keeps on increasing the asset value of the possessor is something everyone wants! Stablecoins offer their users the ability to have some store of value easily. They are backed by the fiat currency, which we use in the real world. Hence, one can say that they are not volatile and may not go up in value and down in the demand in seconds.
Even if you possess multiple cryptos, you are still always at the risk of losing everything! This is owing to the volatility of the market. However, stablecoins make things easier. With the help of these coins, you can easily manage the volatile periods by converting your crypto profit into stablecoins. When things come back to regularity, you can make the shift once again.
Stablecoins are a convenient mode of payment and hundreds of people all across the globe are using it as an acceptable mode of payment. For instance, you can use it to pay for the USD coins or even Binance for that matter. Once you have a crypto wallet that comes with the required address for the payments, the whole transaction takes merely a few seconds. Hence, it saves you a lot of time and hassle!
The fee of transactions for stablecoins is quite low! This is one major reason why it is increasingly taking over the banking system. Using your crypto wallet, you can make multiple transactions at a single point in time, paying a very low fee against each transaction. It makes sending and receiving payments extremely swift and cost-effective. This is the reason why a lot of business giants have started considering it as a threat to the conventional banking system.