Why are stable coins important?
When bitcoin was first released in 2008, it was aimed to be used as electronic cash or on the line of currency — for the exchange of values and goods. As the bitcoin network grew, and more people started to use it, the price volatility increased. There were times when the price of bitcoin went in either direction by 10% in the span of a few hours. As such, it is not preferred to consider bitcoin as a currency for daily exchange on goods and services.
Here is a simple example of why it is not feasible for bitcoin as currency until the volatility is stable (at least for now). Suppose you are planning to buy a car for INR 50 lakhs. You take your bitcoin worth INR 50 lakhs to the car showroom. However, before you make the final purchase, the bitcoin price goes down to INR 45 lakhs. You won’t be able to buy the car with the same amount of bitcoin you thought you could. With this kind of volatility, it will be difficult for you to make any real purchase in the market. Thus, the purchasing power of bitcoin is inflected and people cannot be using something they don’t know the purchasing power of the next moment.
Stable coins solve the problem of volatility.
To solve this problem, innovators and engineers have come up with the concept of stable coins. A stable coin is a digital currency pegged 1:1 to a stable reserve asset like the U.S. dollar or Indian Rupee. Stable coins aim to reduce volatility and bridge the gap between crypto-assets and real-world fiat currencies. Unlike other crypto assets, stable coins have real value pegged to them. Every stable coin has an equivalent value to a reserve asset.
- Stable coins are backed by real value currency like USD, INR.
- Stable coins can be used to transfer assets globally in a fast, cheap and secure way.
- Stable coins are open, global, and accessible to anyone on the internet, 24/7.
Stable coins can be used in the following ways
- Minimize volatility- Since stable coins are pegged to fiat currency and their values directly reflect with an equivalent amount on the reserve assets, there is minimized volatility.
- Trade or save assets in stable coins- With the minimized volatility nature of stable coins, it can be used to trade other assets. During the volatile and bearish market, assets can be converted and saved in stable coins.
- Stake/Lend to earn interest- Because of its stable nature, many platforms including Unocoin provide a lending/staking feature. Users can stake or lend their stable coins to earn interest.
- Transfer money/assets cheaply and globally- Although stable coins are just like any other crypto assets on the blockchain, they can be used to transfer money cheaply and globally. Most stable coins maintain their ledger on blockchain and audit it publicly, and hence it offers an efficient way to transfer assets.
USDT Stable Coin
Launched in 2014, USDT is the first stable coin second-layer crypto-token built on the bitcoin blockchain. 100% backed by Tether reserve and fully transparent stable coin (as per their claim), USDT is issued by a Hong Kong-based company Tether. All USDT is pegged 1-to-1 with U.S dollars. Currently, the USDT token is built on several leading blockchains, including Algorand, Bitcoin Cash’s Simple Ledger Protocol, Ethereum, EOS, Liquid Network, Omni, Tron and Solana. For transparency purposes, Tether every day publishes the record and audit of the current total assets and reserves. Brock Pierce, Reeve Collins and Craig Sellars are the founders of USDT.
USDT Stats:
Market Cap (At the time of writing) — $77,994,394,418
Volume (At the time of writing) — $46,329,736,173
Total Supply — 80,074,893,058 USDT
BUSD Stable coin
BUSD or Binance USD is another stable coin by Binance in partnership with Paxos, which is one of the largest crypto exchanges by volume. BUSD is issued by Binance and backed 1:1 to the U.S dollar. It is approved and regulated by the New York State Department of Financial Services (NYDFS). According to Binance, purchase and redeem of BUSD cost zero fees and can be transferred globally. BUSD supports both ERC-20 and BEP-2.
BUSD Stats:
Market Cap (At the time of writing) — $16,530,631,712
Volume (At the time of writing) — $3,528,762,644
Total Supply — 16,522,327,497 BUSD
Where to trade Stable coins
To trade stable coins like USDT and BUSD at Unocoin, you can download the Unocoin application or sign up at www.unocoin.com. For every unique sign-up during the second month of this new year, new users will get a welcome bonus of INR 100 worth of bitcoin.
What’s more? With Unocoin, you can earn Satoshis by just shaking your phone. All you need to do is, download the latest version of the Unocoin application, shake your phone and earn Satoshis for free!
About Unocoin
Unocoin is India’s first and the most secure bitcoin trading app. This exchange app was founded in 2013. You can buy and sell bitcoin instantly using the Instant Buy and Sell feature. Not just this, you can also buy ETH and Sell ETH in no time. With more than eighty-seven coins listed on this best cryptocurrency exchange in India, you can also accept bitcoin from your friends from any location. You can also know which cryptocurrency works best for you with the price ticker and notifications. The most popular cryptocurrencies like Bitcoin (BTC), Ether (ETH), USDT (Tether), BNB, Ripple (XRP), Cardano (ADA), Solana (SOL), Binance USD (BUSD), Dogecoin (DOGE), Polkadot (DOT) and other popular altcoins can be traded on the go. The new Android and iOS applications make Unocoin the best cryptocurrency app. With the unique feature of the Systematic Buying Plan, you can buy and sell bitcoin and Ether periodically. What more? You can start your crypto journey using SBP for as little as INR 10. With another exciting feature called Crypto Basket, you can diversify your crypto portfolio based on market capitalisation (Market Cap) or Volume. These two excellent features make Unocoin the best cryptocurrency platform.
Love Crypto Coins. Love Unocoin.
Please find the list of authentic Unocoin accounts for all your queries below:
- YouTube Channel: https://www.youtube.com/c/Unocoin/videos
- Newsletter: https://medium.com/subscribe/@Un
ocoin_growth - Blogs: https://blog.unocoin.com
- Instagram: https://www.instagram.com/unocoin/
- Twitter: https://twitter.com/Unocoin
- Facebook: https://www.facebook.com/unocoin/
- LinkedIn: https://in.linkedin.com/company/unocoin
- Telegram Group: https://t.me/Unocoin_Group
- Telegram Channel: https://t.me/+fasQhTKBsfA5N2Zl
- Telegram: https://t.me/UnocoinSupport_Bot
- E-mail id: [email protected]
- Contact details: 7788978910 (09:30 AM IST — 06:30 PM, Mon — Sat)
- App store link: https://apps.apple.com/us/app/unocoin/id1030422972?ls=1
- Playstore link: https://play.google.com/store/apps/details?id=com.unocoin.unocoinwallet
Disclaimer:
Crypto products are unregulated as of this date in India. They could be highly volatile. At Unocoin, we understand that there is a need to protect consumer interests as this form of trading and investment has risks that consumers may not be aware of. To ensure that consumers who deal in crypto products are not misled, they are advised to DYOR (Do Your Own Research).
