MakerDAO – Dai Decentralized Stable Blockchan Cryptocurrency?
Are you looking for a really safe and solid investment in the cryptocurrency market? This specific market is widely known for its volatility and, because of this, it is hard to find investments that can be really stable for the investors. Sure, the Bitcoin price is going up all the time, but sometimes the currency loses more than 10% of its value in a single day.
You have to be well prepared if you want to find investments like these, as they are pretty rare. Fortunately for you, we can provide you with some very good information regarding cryptocurrency investments. Today, we are going to review a new cryptocurrency called MakerDAO Dai.
What is MakerDAO Dai?
MakerDAO Dai is a new cryptocurrency created by a company called Maker, which also created the Maker system and the MKR tokens. The biggest objective of this specific token is stability. Cryptocurrencies, as we have already told you, are very volatile. This volatility can be an issue when you intend to invest, so Maker’s objective is to minimize the risks by creating Dai.
With the motto of being a “decentralized stablecoin”, Dai will react automatically to changes in the market in order to stabilize its price against other types of currency. Because of this, this token will represent a very stable investment, which means that it might not get so valuable as Bitcoin very fast, but it will not lose a good part of its price in a single day, either.
How Does Dai Work?
The stability of Dai will be market-based. If the market is stable, so will Dai be. The cryptocurrency’s value will mirror the value of the USD currency, as this is the primary reserve currency in the world today. A program will scan the market and watch the fluctuations of the non-cryptocurrency market and try to imitate it to keep the coin stable.
Because of the way in which Dai functions, you will be able to lend this cryptocurrency and actually receive an interest rate that you might be able to calculate as the price will not flow very aggressively. This makes Dai the perfect type of cryptocurrency for people that want to have a solid and strong cryptocurrency in their wallets.
How to Invest in Dai?
It is a very easy process do invest in Dai. The cryptocurrency will not have one of the current traditional Initial Coin Offerings (ICOs), you will have to acquire the tokens by buying them instead.
It’s just like buying Ethereum or Bitcoin. You will have to access a site or company that sells Dai and then buy it. Dai is an Ethereum-based token, so you will be able to store it in any Ethereum wallet that you might want to use.
The MakerDAO Verdict
Is this the right investment for you? It really depends. How much do you value stability? If you buy Bitcoin (or even Ethereum or Litecoin) you are going to invest in a currency whose price is always going up. If you buy Dai, on the other side, the price of the token will hardly go up, but it will hardly do down either. The key to Dai is this stability.
If the stability really works well with time, Dai can be an excellent cryptocurrency to be borrowed. Because of this factor, this is definitely a great investment for you if you definitely want to use cryptocurrency for this purposes or if you only want to use a cryptocurrency whose price is stable.
If you want to buy Dai, go for it, you are making a good investment investing in this cryptocurrency.