“Cryptocurrency is over now!!!” – The crowd.
No. It’s not done yet!!! But…..It’s the beginning of the Crypto show. The previous year, the term cryptocurrency spread like a fire in a jungle. And now if it’s not covering a piece of headlines in the news. Doesn’t mean it’s over for the crypto thing. Most probably it’s because of one of the most notorious coins called Bitcoin. Because of the sudden rise in the price of the currency. People all over the world got an eye over it and started investing in it. But this time the cost of the Bitcoin seems to be struggling to cross even $10,000. But I think there’s no issue at all Bitcoin will rise again as per my records and observations.
Here comes another Cryptocoin that’s introduced by one of the major tech company – Facebook. Last month Facebook has made it to the Stablecoin coin. No name, no strategy or anything is known to anyone. And it still in it’s developing stage. While Facebook has already hired almost 45 people to help build the Stablecoin.
What is a Stablecoin?
Stablecoin is a pegged coin, meaning the price of the coin will be matched up with any of stable or constant priced currency(in this case it’s matched up with USD). This means 1 Stablecoin = 1 USD. The Cryptocurrencies that are relatable to any real currency or any other commodity is called as centralized whereas those cryptocurrencies which are not confined to any other cryptocurrency then it’s known as decentralized.
These coins are named as Stablecoins as the price of he Stablecoins will remain the same throughout the year irrespective of the changing weather, season, day or night. It’s not going to change whatever be the prevailing circumstances. Unlike other decentralized Cryptocurrencies(like Bitcoin, Ethereum, Litecoin, Bitcoin Desk and many more) where the price of the coins are more prone to change as per the trade rate of the particular currency.
But if you’re still unaware of the Bitcoins and Alt(alternative) coins that are floating in the current Crypto Market. Then you must check out my previous post on Bitcoin.
Types of Stablecoin?
As of now, the Stablecoin is further distributed in three significant Stablecoins namely – Fiat Collateralized Coin, Crypto Collateralized Coin, Non – Collateralized Coin.
Okay…You don’t worry about anything that’s not understood by you. I am here to help you understand every bit information to your holy brain.
Let’s first work out with Fiat Collateralized Coin.
1. Fiat Collateralized Coin
The Fiat Collateralized Coins are the ones dealing with the pegged currencies meaning they’ll remain stable, unlike any other decentralized cryptocurrencies.
It’s one of the purest forms of Stablecoin currently available in the market. And just because it’s pegged down with some Stable currency, so it’s price doesn’t fluctuate in general. Since Fiat Collateralized Coin doesn’t use Blockchain so, it’s completely secure from any hacks.
This kind of Stablecoins is generally held by a person/community stores the Fiat. For the sake of transparency between the user and the regular authority, audits are organized by the administration. Once you’ve submitted your USD to the body to buy the Stablecoins, it’s an arduous and slow process to screw out your USD back in your pocket. The withdrawal is a cumbersome task and will take a lot of your time.
Also if you wanted to buy a Stablecoin, then it’ll be priced not higher than the 1 USD for 1 Stablecoin. That means the Stablecoins are rated for a USD — for example, USDT(Tether coins), PAX, GUSD, USDC, etc.
This is one of the best, trusted and reliable Stablecoins that is present in today’s world. Since it’s directly linked with the USD and that means the US Government itself will manage the price of the coin. So the authority of the currency increases. There’s a clear 1:1 ratio between Stablecoin and the USD meaning the if you buy/sell 1 USDT Stablecoin you’ll get 1 USD.
These are one of the safer, stable, reliable and currently present in an abundant amount in the market. There is a Blockchain based security system similar to the Bitcoin to help secure the USDTs. It’s super highly liquidated(easy to withdraw, trade, exchange). Since its one of the Stablecoins but because of the rising demands and delectable to Bitcoins. This is why there are very few left with those holding Tether coins.
- TUSD (True USD)
TUSD is another most trusted token which is quite stable, is a Blockchain – Based Stablecoin. Albeit TUSD is similar to Tether coin but comes with a little and the most incredible improvement on the escrow system.
In TrueUSD, the Bank Accounts are held by the multiple channels that have a signed escrow system to ensure more security. Any single authority does not control them. Regular audits of all the TUSD holders are held on a daily basis. All those audits are released on a monthly basis. This turns ON the user’s trust over the TUSD system as it’s not centralized but a collateralized system where some small units are involved in order to smoothen the system.
While trading or transferring the TSUD, there will not be any single penny that you’re going to pay as an additional fee, unlike the Tether coins where every time you make a successful transaction. You have to pay a small amount as a transaction fee. This, in turn, reduces the additional cost of payment. And the weirdest, as well as exciting part of all, is that it’s entirely based on the Ethereum Blockchain.
If anyone’s willing to have a TrueUSD coin then at first, they’ll have to submit their KYC/ AML certificates and get approval if everything’s okay with the documentation. Further, you can make transactions through various escorts.
Also, the USD dollars could be sent back to the respected, smart contract and instead of TUSD the USD as per 1 is to 1 ratio could be reverted to your Bank Account with no additional charges. Once the transaction is initiated the TUSD Tokens will notify the smart contracts, and this will eventually send a vivid notification to Bank Accounts to release the related funds to the user’s account
- 100% Price Stability
- Less vulnerable to hacks since it’s not linked with the Blockchain
- Centralized, so the trusted group or community must hold or store Fiat
- Needs regular audits for the sake of transparency
- Highly regulated as there are particular chains of procedure that helps secure the coins
- Expensive and slow squeezing process
2. Crypto Collateralized Coin
The Crypto Collateralized Coins are those that are dependent on other Cryptocurrencies. Their price will fluctuate as per the cost of the particular cryptocurrency, and so it’s completely volatile. This is the most recently developed Crypto method and is not tested in the market yet. So it’s not Hundred percent sure that it’ll work out for you.
These kind of Stablecoins are entirely decentralized. That means it’s maintained by some small communities or group of people.
Also, the process is complete transparency. You will be able to access all your transactions details, so there’s no additional charges or taxes that the Government used to charge on you Bank Transfer. Many times you don’t know about the other fees that they used to add on any of your transactions. For example, SBD, MakerDoa/DAI, Havven
- Can be squeezed out all the coins with a natural process
- History of transactions are visible to all and can be inspected by anyone
- More volatile or less Stable
- Can be auto squeezed out if the price crashes
- Consequently, the Stablecoin holder will lose their shares
- Inappropriate use of the capital
3. Non – Collateralized Coin
As the name suggests this kind of coins don’t depend on any other Cryptocurrencies but are dependent on their supply that works algorithmically based on smart contracts whose price increases and decreases.
These types of Stablecoins uses a Central Bank system to regulate the coins, and this might change the price of the coins, but it tries to maintain the amount of the coins. For example, Basecoin(Basis Protocol)
How to Buy Stablecoin?
There are plenty of sites that allow you to make a trade using Stablecoins, buy them or sell them online.
The Process is so simple. Just get inside any of the sites allowing you to trade Online.
- Click on any of the link specified above
- Sign up with them if you don’t have your account or Log in if you have already signed up with them
- You’ll get an e-mail verification for your account
- Confirm your email
- See if your preferred exchange is available or not(as these platforms are made with some specific agenda)
- Deposit you currency and buy the one which you wanted to trade with or make any transaction
My Final Opinions about Stablecoin
Okay okay okay… Now let me express my opinion over this robust notorious Crypto evolved Stablecoin. It’s one of the finest of all the Stablecoin ever found in the Crypto Market. Because it’s price will be stable as it was earlier.
No matter what the circumstances may be the price of the Stablecoin will remain the same. This is why it’s called as Stablecoin. Even if the price seems to be declining the escrows and other governmental authority will try to make it stable.
So there’s no way that the price of the Stablecoin will decrease or increase.
Also, the competition between other Cryptocurrency and Tether are indeed increasing. And that is usually a good thing for users as the more, the more will be the availability of the Cryptocoins, and eventually, the price of the coin will fire up to sustain in the Crypto Market. To serve their best, the amount will be, and this is where you can make a hell lot of money out of it.
Can you tell me exactly how many Cryptocurrency are available in the market?
There are 1,658 Cryptocurrencies according to investing.com as of Mar 16, 2018. So this number will keep on increasing as days pass by.
Since the roaring demands and thud over the digital market, the price, as well as the Cryptocurrency, will bombard in number. As the Online Market keeps on deploying day by day. There will be plenty of opportunities in the Online Crypto as well as Digital Marketing if you carefully look after it.
Why is this Stablecoin being developed by Facebook so much exaggerated in the market?
This will be the first Stablecoin to be implemented in an App that’s widely used by the people across the globe. It’s called Whatsapp.
“There are more than 200 billion active users in India. Additionally, there are 1.5 billion monthly active users (MAUs) who are exchanging 60 billion messages every single day. ” – financial express said. (recorded in February 2018)
Its acquired by Facebook from the Whatsapp Founders back in the year 2014.
So….that is it!!!
Let me now hear from your side that what do you think of this new Crypto Technique called Stablecoin. Since the price is said and kept to be Stable and so the name.
Comment down your opinions and let me know what do you think of this greatest yet thrilling Stablecoin.