Cryptocurrencies often face criticism regarding lack of uniform regulation and for being highly volatile. Cryptocurrencies called Stablecoins can answer double-digit inflation, are less volatile and have fixed prices. Stability value is on par with fiat currencies or assets like gold and silver.
Another concern is that cryptocurrencies were supposed to become digital cash, but are now only used to store wealth. In many places, bitcoin is stored at exchanges and rarely used in daily transactions. I believe that Stablecoins can solve this issue with their potential to replace money.
What makes digital cash reliable and stable
Stablecoins offer all the best features of Bitcoin and Ethereum but combined with the assurance of stability.
Stablecoin value is allocated as Basis Token, pegged against a stable asset or fiat currency. Bond Token repayment depends on the price of basis token. Share Token depends on supply and demand for basis tokens.
Nobel Laureate and economist Friedrich August von Hayek envisioned ‘Ducat’ in his book ‘The Denationalisation of Money’. Ducat is a stable currency issued by private institutions, without the interference of governments. This true money concept seems possible with Stablecoins. Here, I share with you a list of the best Stablecoins available in the crypto market.
Best Stablecoins available currently
True USD- True USD is one of the most recent Stablecoins whose Basis token is pegged against US dollar. Collaterally backed and insured by US dollar, the tokens can be redeemed anytime for US dollars at ATMs and stores.
Dai- Dai, though pegged against USD, is different from other Stablecoins. Its value depends on user-pledged collateralised Ethereum but is not tied to any assets. If one token is bought, another one is created.
Tether- Tether is the best Stablecoin for a new trader in the crypto market. The platform is completely based on blockchain technology. Its value stays at 1:1 ratio, against all market fluctuations.
BitCNY- BitCNY is collaterally backed by Chinese Yuan and rose quickly, owing to the constant need of the traders for a low-risk investment. In my opinion, BitCNY is the smartest among available Stablecoins. Mintage is not possible and it runs on BitShares Blockchain.
Haven Protocol- Haven Protocol is the only decentralised and untraceable Stablecoin in the current market. It combines security of offshore banking and advantages of cryptocurrencies. Stablecoin minting is based on smart contracts and token is not pegged against fiat currencies.
After thoroughly studying the crypto market and its trends, I have made this list for anyone planning to buy Stablecoins. In the near future, using blockchain applications will become much easier and governments around the world will agree on uniform legislation. As cryptocurrency volatility decreases, crypto assets like payment tokens will be replaced by Stablecoins.