As Bitcoin rises and falls without warning over the past six months, investors, institutions, and crypto-enthusiasts are turning to less volatile digital coin alternatives. The digital currency shifting how we view cryptocurrency and the utility of blockchain are called stablecoins. And stablecoins are making some serious waves in the world of crypto.
Behind one of the most stable digital currencies available to date is Ven. Ven currency was first created in 2007 by Stan Stalnaker and was first available on Facebook. This was a year before Satoshi Nakamoto’s Bitcoin white paper discussing the peer-to-peer network and decentralization, published in 2008.
Ven and stablecoins have come a long way since their inception. For instance, Ven currency is a stablecoin valued in real-time across the world. Ven is also supported by a number of fiat currencies, as is most stablecoins in use.
Stablecoins may bring cryptocurrency, and the utility of blockchain, to the mainstream
What are stablecoins exactly? Well, just as the name entails, this type of digital currency is indeed “stable.” Unlike the ebb and flow of Bitcoin or another volatile cryptocurrency, stablecoins, like Ven, only increase or decrease in value when the fiat currency or precious metal does.
For instance, let’s say you have a stablecoin supported by the Japanese Yen. In the past six months, the value of the yen has only fluctuated by three to four. This is a game-changer. In comparison to Bitcoin, for example, the volatility in the last six months is in thousands of dollars.
Nevermind the naysayers and crypto-fanatics
There are crypto-fanatics that would say that stablecoins are not truly decentralized since they are supported by fiat currency. Sure, that may be true. However, the truly decentralized cryptocurrency is so volatile, it has investors, global companies, and institutions running for the hills. And blockchain utility is paying the price.
Now others would argue that stablecoins are just right for this moment in time. With so much up and down in the crypto market, which total capitalization is still trying to recover from a $500+ billion loss since Q1 2018, a stable digital currency makes sense. It can be used in a variety of ways with confidence from investors and users alike.
Even Facebook’s Libra, a type of stablecoin is gaining momentum. Facebook aims to revolutionize payment systems with Libra. “If that happens, it’ll create, almost overnight, a borderless collection of millions, maybe hundreds of millions, maybe even a billion or more people using the same platform to communicate, the same tools to shop and view ads and play games, and the same monetary system,” Wired noted.
Ven Currency is similar, and already in use globally, providing convenience when peer-to-peer transactions need to be made. Ven is also better for the environment since it has carbon as its underlying component. It is secure, global, green, and most importantly — Stable!
Stablecoins are the right solution at the right moment
The benefits of implementing cryptocurrency and blockchain technology into business practices or institution processes are there. And stablecoins may be the catalyst to the realization of how much utility can be put into place.
And the cryptocurrency market is primed for disruption. Many crypto-enthusiasts and companies are watching stablecoins, like Ven very closely. The non-volatile nature of stablecoins alone can bring more solutions to market. This has been attempted with cryptocurrency, like Bitcoin, but it’s too unpredictable.
“It is clear there is a need for stable coins at this stage in the development of cryptocurrencies,” Mina Down explained in a Hacker Noon article. “The price volatility that characterizes the current market limits liquidity and is a significant barrier to mainstream adoption of digital currency, as well as the development of new use cases.”
Utilizing stablecoins, solutions can be developed and launched with far less risk. This, of course, is what investors, global companies, institutions, and governments want. Solutions with low risk. Now with stablecoins, investments in crypto and blockchain solutions become enticing. It is a win-win for all of us.
Are you ready for a stable digital currency?
Stable digital currency, like Ven and Libra, are putting cryptocurrency volatility in check, bringing back the investors, businesses, and institutions needed to push crypto and blockchain forward via using solutions digital coins support. This is the future in many ways.
And the use of stablecoins goes far deeper than just monetary transactions. It could assist countries around the world in streamlining how government funds are received, kept, and used. Since the transactions are very transparent, checks and balances could be restored. These utilities are important.
Disclosure/Disclaimer: This article is paid for and produced by a third-party source and should not be viewed as an endorsement by ZyCrypto. Readers are urged to do their own research before having anything to do with the company, goods and/or services mentioned in the above article.