STABLECOINS BALANCE THE CRYPTO-MARKET
Stablecoins are not affected by enormous price fluctuations like other cryptocurrencies. For example, in 2010, a programmer paid 10,000 bitcoins (~30$) for a pizza. However, by the time of writing, the value of that bill has reached $94M — All this comes from the huge price fluctuations of bitcoin. This makes businesses doubt the ability of crypto payment. Typically, Microsoft first allowed bitcoin payments in 2014 but had to stop shortly afterward due to excessive price fluctuations.
Stablecoins are different, taking advantage of cryptocurrencies’ values such as transparency, security, immutability, digital wallets, fast transactions, low fees, and privacy. But it still does not lose the guarantee of asset value like traditional fiat currencies (USD or EUR).
It likely brings many benefits to organizations and individuals who need to make international payments quickly and securely. From migrant workers needing to send money to their families, to businesses looking for a cheap and effective payment solution for overseas transactions, in all these cases, they don’t need to worry about their assets suddenly decreasing in value like bitcoin.
Additionally, stablecoins now play a vital role in the cryptocurrency market. It can be a place where traders hide when the market has signs of volatility. They can quickly transfer their assets to stablecoins to preserve assets in minutes, without liquidity in fiat currency (as many transactions on cryptocurrencies do not allow to use fiat money or there will be a large fee when transferring to fiat).
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