Crypto Researchers Claim ‘Stablecoins’ are the Way Moving For the Altcoin Industry
Many of us may remember of a time when crypto adoption was slowly beginning to garner mainstream traction across the globe. However, over the past few months, the issue of ‘price volatility’ has severely affected the way in which many merchants now view the alt-asset domain as a whole.
With that being said, many firms in the recent past have started to realize that from here on out, the use of stablecoins could be their best alternative to safely managing their financial assets.
Let’s Start With The Basics..
With all of the hype surrounding this digital asset class at the moment, the question naturally arises
“So, what exactly is a Stablecoin?”
In their most basic sense, we can think of stablecoins as being “blockchain-enabled assets” that are pegged to stable real-world currencies. Thus, for example a stablecoin can be tied to the price of a dollar— thereby eliminating the issue of constant price fluctuations altogether.
History Of Stablecoins
As some of our readers may be well aware of, the stablecoin industry only came into prominence earlier this year— when the crypto sector as a whole started to witness a tremendous decline in its overall value. To be more specific, the recent market downturn has seen most of today’s major digital currencies lose anywhere between 80-90% of their overall capitalization.
More About Stablecoins
While stablecoins may not be as financially appealing as some of the other speculative asset classes available in the market today, they are quite a lucrative option when it comes to investing in an asset that possesses many unique qualities related to long-term financial stability.
At this point, it is also worth noting that according to a report released recently by a trusted media source, the total investments that have been poured into the stablecoin space have touched a whopping $3 billion. This inflow of money has led to the introduction of more than 120 such projects into the market this year alone year.
Some Issues Still Persist
While a whole host of new players within this market have given importance to transparency and thus come backed with third-party audit reports, there are still projects like Tether (USDT) that have attracted a lot of criticism— primarily for refusing to release their balance-sheets. As a result of this, the market has now been blown wide open— with the industry currently housing a large number of established stablecoins including TrueUSD, Paxos, Maker, Gemini Dollar and USD Coin (all of whom are pegged to the US Dollar)
With the crypto industry starting to take the issue of ‘due diligence’ more seriously, it now appears as though 2019 could be the year when stablecoins witness a real breakthrough in their overall popularity. This is not just wishful thinking, as many bitcoin retailers have also expressed their desire to integrate a stablecoin solution into their financial offerings.
Last but not least, it is worth noting that social media juggernaut Facebook recently announced its plans to introduce a stablecoin into the market soon. A spokesperson for the firm said that the point of this whole operation is for the company to finally power its native p2p payment module on its WhatsApp messenger.