Some friends of mine always lament that 'we need more stable coins in the cryptosphere' and I think that is highly achievable looking at the promising prospects that has been achieved by tether. It seems some upcoming projects are also promising to introduce stable coins. Is it possible to have more stable coins on the crypto market? What would really happen if we get more stable coins on the crypto market, would the volatility reduce?
Volatile coin, in general, is of greater interest in terms of investment.
Stable coins have led to the creation of competition among those who can best organize the issuance of money. Each of the categories of stable coins differ in the method of providing value and has its own advantages. It:
- coins with cryptographic security;
- coins with a fixed interest rate in Fiat;
- algorithmic stable coins.
In the short term, models that support Fiat will dominate. But over time, as the open financial system grows, DEXs increase market share and dApps are increasingly accepted by the public, it is possible that crypto-secured stable coins will slowly overshadow fiat centralized reserve currencies.