Happy Sunday Guys
Let get to share our opinion on the available categories of stablecoins.
As it stands,
A stablecoin is a cryptocurrency that attempts to maintain a fixed or ‘pegged’ price in terms of another asset.
Depending on the nature of the reserve asset, or its absence, stablecoins can be classified into primarily three groups
Fiat backed:- use a national currency as an off-chain reserve asset. USDT, for example, is backed by USD reserves that are held by third parties (like banks).
Crypto backed stablecoins:- are backed by other cryptocurrencies as the reserve asset.
Non collateralised Stable coins:- they rely on algorithms to keep the market price stable.
Let’s get to share our view on the disadvantages and advantages of those 3 category of stablecoins .
I like the definition given “as it attempts…” attempting does not necessarily mean it should be stable.
Stability is very relative and therefore no currency can ever be considered to be stable if it in comparison with another, you might think dollar is stable, but compare it with pounds sterling and you will see how dollar moves up and down.
You might think pounds is stable but compare it to dinar and see how it goes up and down.
So when any crypto coin goes up and down, ask yourself what are you comparing it to?
Las monedas llamaremos estables, aunque no lo son, como tu bien dices fluctúan continuamente.
Se las ha denominado así como juego psicológico la palabra estabilidad, a cualquier individuo en su mente le sugiere tranquilidad.