The coin ring gone crazy after 2017, attracted numerous carries the dream of youth, but to their bitcoin is a drop of more than 80% kinds of copycat currency is almost zero. For a time there crying constantly, a lot of people full of regret and pain, but there are still some people choose to believe that digital currency, that it can expect in the future. So bear, for them a stable currency Hanlaobaoshou business, not willing to leave their chips will be changed into stable currency, in order to buy at any time in the market turning point in time.
As the name implies, it represents a stable currency value is relatively stable, stable currency market mainly is composed of three models:
Mode of legal tender trust: Stable currency mode trust by legal tender currency mortgage – and their respective legal currency ratio one to one. Traditionally, the stable currency is trying to keep the dollar peg. Encryption mode of money trust: The stability of currency by encryption encryption support money mortgage. Stable currency support encryption is not to maintain the ratio of one to one, but by trying to maintain stable currency ratio of collateral and the higher the price of currency peg. The collateral can be a single currency or a number of different encryption encryption currency. The central bank model algorithm: Stable algorithm to support the currency without collateral. These stable currency tries to similar to the central bank currency policy to maintain its stability.
So many people think that money has the characteristics of stable and bitcoin transactions, transparent to the center of the same, and the value is more stable, so it will be regarded as a safe haven asset too look down upon it.
Encrypted digital currency may completely break the geographical restrictions and national trade barriers, so that bitcoin after the birth of public expectations, its followers always feel it can be used as a “world currency”, but because of the nature of deflation and currency instability, bitcoin farther away from the “world money” road and.
Earlier, the New York Financial Bureau approved Gemini and Paxo launched GUSD and PAX, people’s eyes began to focus on stable currency itself, perhaps the value of stability, decentralized, transparent trading currency, is the public hard in pursuit of the “world currency”.
There are many agencies also believe that the New York Financial Services Authority endorsed the stability of currency GUSD and PAX marks the start of encryption currency market, seize the opportunity and advantage of the United States or $richly endowed by nature, permission to continue its dominance in the world currency encryption.
Can this really so? A stable currency of New York Financial Bureau endorsement, it can replace the bitcoin position?
In the discussion of this before the first look at the main use of bitcoin:
1, the dark network transaction 2, the value of storage (anti inflation, asset allocation choice) 3, and other currency trading 4, cross-border transfers 5, hidden property 6, investment demand (and prices)
If there is a stable currency really boarded the most exchange, can be used in the dark net trading, coin trading and cross-border transfers, then cut away the bitcoin three important functions, which will undoubtedly affect the bitcoin market. From the logical point of view, relatively stable it is only a matter of time to catch up with bitcoin, but we have to think deeply about.
Many kinds of encryption currency bitcoin, why have these 6 functions, in fact, the key point is that bitcoin is the audience, the highest recognition of digital currency, so people can use it in various fields. Because of the broad consensus, can reduce a lot of cost. As international trading is generally used as the dollar.
Therefore, stable currency can grab bitcoin business, must have a wider consensus than bitcoin. Stable currency in boss USDT, let alone outside the ring, is in the circle, but also a lot of people are not recognized. Some people even think that USDT is going to run away sooner or later.
A new incoming stable currency, to achieve consensus and recognition than bitcoin more easier said than done.