Quote from: BOGDONO on December 11, 2020, 08:36:41 PM

Quote from: VANDERWEELE on December 10, 2020, 03:07:08 PM

The certainty of the value of legal currency provides a guarantee of value retention for stablecoin users. In this way, unfavorable market fluctuations will not rise, and will not cause loss of value.

There is no doubt that stablecoins are making waves in the ocean of cryptocurrencies. Binance's research supports this overall view, showing that the popularity of stablecoins and the use of trading pairs have increased in 2019. However, it is only a matter of time before using algorithmic coins to replace stablecoins backed by fiat currencies. Such algorithmic coins can better maintain purchasing power over a period of time.

For people who are accustomed to government-backed currencies, stablecoins backed by fiat currencies are a natural transition, but whether these digital currencies are linked to the US dollar, the euro or the renminbi, they will suffer the same market shocks and currencies as the fiat currencies. Swell.