Experts explained why blockchain needs digital coins tied to real tangible assets, and what is their advantage over "conventional" cryptocurrencies
In the world of cryptocurrencies, there are digital coins, the value of which is tied to a specific physical asset. The first such digital currency, USDT from Tether, appeared in 2015. It is pegged to the value of the US dollar in a 1: 1 ratio. Since then, the number of stablecoins has increased markedly.
Blockchain and the real world
In the real world, people use the yardstick in the form of fiat currency, but the blockchain does not understand what the euro or the dollar is, it has its own metrics – block sizes, number of transactions, hash rate, explained Grigory Klumov, founder of the Stasis stable cryptocurrency platform. According to him, stablecoins were created to bring the blockchain closer to the world of people and make on its basis an asset that can be perceived as a unit of measurement of value.
In addition to being pegged to fiat currencies, stablecoins can be pegged to precious metals, natural resources, securities, real estate and other physical assets, said Artem Deev, head of the analytical department at AMarkets. Due to this, stablecoins have less volatility.
What is the investor's benefit
In the cryptocurrency market, stablecoins serve as a buffer, noted Grigory Klumov. Through them, owners of large capital can enter the crypto market, he added. According to the expert, this is convenient, since you can immediately turn a large amount of money into money within the blockchain and trade or invest with it.
There is also the opposite situation, says Grigory Klumov, when an investor has a lot of cryptocurrency and does not want to lose its characteristics. Then, according to him, he converts the cryptocurrency into stablecoins and waits out the volatility on the crypto market. Another advantage of stablecoins is that this type of assets can eventually become an alternative to the usual fiat currencies in countries where the exchange rate of the national currency is unstable, Artem Deev emphasizes.
“These assets can become a transitional option for settlements in unstable economies, where often ordinary fiat money quickly loses in value,” the analyst explained.
According to the head of the analytical department of AMarkets, in the future, the popularity of digital assets created on the basis of real material wealth will only increase.