Bitcoin As You Didn't Know It Before

 

Stablecoin .. the fixed digital currency, a term that seems strange to some in the digital currency market, but it is a new type of electronic currency, which aims to maintain the value of the token steadily, it will be the topic of our conversation today, we will try to address everything related to it.

What is stablecoin ?

Meaning fixed currency, it is a term that has come to be used in the digital currency market , and it is simply a digital currency , but it maintains its value constant, because it is linked to a traditional currency, let it be the dollar, and the first fixed currency was Tether , a currency pegged to the US dollar, traded at a price of 1 Dollars.

After that, many currencies appeared that follow the same method, but vary in terms of success, and each currency is characterized by a set of mechanisms, but in the end they work the same way, and the aim of them is to stimulate the market to trade at a price that does not exceed one traditional currency, whether it is a dollar, Euros, and others.

Tether and TrueUSD keep actual dollars in its reserve, making it easy to redeem the token, and Dai has catalyzed digital currency in the reserve as well as a lending system.

The goal of Stablecoin

The only goal of the fixed digital currency , "Stablecoin", is that the digital currency market is not always easy to trade in dollars, and this is due to the regulations and restrictions imposed on this market, which is the presence of a strong alternative competing in the market as well, and makes it required by some .

Thus, it has become easy to trade and exchange fixed digital currencies with cryptocurrencies , as well as the possibility of converting the currency in which you invest into the fixed currency quickly, to avoid a further decline in the value of the digital currency , which is currently characterized by rapid fluctuations, and when the currency rises or returns to stability, you can dear Go back to it again.

With this, "Stablecoin" is a savior for investors, who can return to it every time there is a drop in prices, thus reducing the loss of this investment.

The beginning of the idea

The idea for Stablecoin began to emerge, in 2012, when writer JR Willett mentioned it, in a book called “The Second Bitcoin White Paper,” and the matter was put forward to create a stable currency, and the term began gaining traction in 2014.

Many attempts emerged after that to create the idea, but all of them failed, due to the failure of the process of linking the digital currency to the traditional currency, including Nubits “USDNBT”, which was clearly linked to the US dollar, and which initially succeeded in preserving its $ 1 value since its launch On June 9, 2016, however, it then failed to maintain the 1: 1 ratio, falling below the $ 1 resulting in its failure.

The most famous fixed digital currency

Some currencies succeeded after that in maintaining the ratio of 1: 1, or slightly more, or slightly lower than the ratio, and then back again, and among the most famous and successful digital currencies until this day are the following:

Tether digital dollar

The project appeared in November 2014, by Reeve Collins, which referred to the currency as being based on a blockchain released using the Bitcoin network , and using the Omni protocol.

Tether

In February 2015, Tether made its debut on Coinmarketcap, and it became a safe haven for many investors in light of the bear market, and the coin managed to maintain a value of 1: 1, so far, and at the time of writing the coin is ranked seventh in cryptocurrency competitions based on market capitalization, With a value of more than 1.88 billion dollars, reaching 1.01 dollars.

Fixed currency is listed on many cryptocurrency exchanges, including: Houbi, Binance, Poloniex, Bittrex, Okex, and other popular exchanges.

Trueusd “ TUSD ”

A new stable currency, backed by the US dollar, distributed across various escrow accounts within the Trust Token Platform, based on the Ethereum network.

The coin was first listed on CMC data on March 6, 2018, and at the time it was steady at $ 0.99, or $ 1.01 per coin.Trueusd

At the moment, the currency occupies the twenty-seventh place, in the competitions of the market value of the digital currency market, with a value of 214 million dollars, and its value at the time of writing the topic reached 1.01 dollars.

Trueusd is listed on many cryptocurrency exchanges including Binance, Bittrex, and Zebpay.

Dai

Another fixed currency, Dai , is based on a protocol belonging to the Ethereum network, which is the Dao protocol, which uses the dollar exchange rate, when it secures digital currencies in a stable manner.

The coin made its debut on Coinmarketcap, on December 27, 2017, and was priced from $ 0.99 to $ 1.02 per unit of it.Dai

It is not considered a common currency such as USDT, and if we look at the ranking in the market of digital currencies based on the market value of its day, Fsngdaa ranked sixth session, with a market value of $ 57 million swallow only, and the time of writing is trading subject at $ 1.02.

These currencies have succeeded greatly in enjoying great popularity, although it is considered controversial in the minds of many investors, and it has also become a good idea for many companies working in the field of financial technology, but it all lies in the success of the stability of the currency at $ 1, or slightly higher or slightly lower, at the present time is the reason for their success is the bearish market , which suffers from digital currencies .

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Bitcoin As You Didn't Know It Before