Bitcoin broke our hopes again. We’ve watched it rise to almost $20 000 and drop back to $3k. In July with Bitcoin growing to $14k everyone expected it would skyrocket to $1 M. Unfortunately, anew, we see the falling star.
So, what’s wrong about Bitcoin? Bitcoin is a decentralized currency, which means that no authority or government regulates it. And this is not possible ever to change. In terms of investment attractiveness, BTC is a two-end sword: while it seems to be a great investment opportunity, its high volatility makes it still tricky to rely on BTC.
With this in mind, different developers embarked on creating a brand-new kind of cryptocurrency – stablecoin. Backed with a certain less volatile asset, the coins can be maintained “stable”. Stablecoins’ value may be fixed to such fiat currencies as USD or EUR, or properties like gold. Sometimes, stablecoins rely on other cryptocurrencies like ETH or even not backed by anything and still manage to remain “stable”.
The most common and practical in terms…