Is stablecoin an alternative to Bitcoin?

Against the backdrop of a fall in ICO fees in the cryptocurrency sector, a new trend has appeared - stablecoins. A market weariness of volatility led to this.

The decline in ICO fees worldwide has prompted the development of another tool - stablecoin, cryptocurrency with a stable price relative to the entire market. If we turn back, we will see that when the market falls, investors begin to invest in more stable assets. A striking example is the infusion of US Treasury securities during the 2008 crisis, this asset was considered as the least risky option.

Stablecoins - cryptocurrencies with a stable price relative to the entire market

The fall of Bitcoin and Ethereum led to the popularity of startups in the field of stablecoins. At the moment, there are already more than 20 such projects. There are 4 types of stable cryptocurrencies, depending on their availability:

- Backed by fiat money. For example, Tether, whose token is pegged to the US dollar.

- Algorithmic coins controlled by program code. In practice, there are practically no working examples.

- Backed by cryptocurrency stablecoins. A rather unpopular view that also lacks effective examples.

- Stablecoins secured by trade. This type can be called a bridge between the real economy and cryptocurrencies, since their value is ensured by commodity circulation. One example is XDR, a stablecoin linked to the SDR (International Monetary Fund Special Borrowing Rights, the value of which has changed by about 11% over the past 30 years). EEARTHCOIN or ERTC is a new kind of stablecoin - it cannot be attributed to any of the previous options , because its value is provided by the average cost of a real square meter of land, which, you see, is quite stable. In addition, with Smart Wallet you can conduct financial transactions using ERTC without commissions, fees and taxes. And ERTC itself will become a full-fledged asset, valued in other currencies, but not the other way around.

Previous years have proved that it is impossible to become a value for the market without a stable exchange rate. The volatile cryptocurrency niche in 2019 will be occupied by stablecoins led by ERTC.

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