Volatility Factor of Cryptocurrency
I liked the concept of cryptocurrency when I first read about it. The idea of writing digital data assets on distributed ledgers via the networked distributed computing infrastructure is simply brilliant.
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The price of the cryptocurrency is as volatile as a stock price in the stock market. The volatility of stock and cryptocurrency prices put them in an uncertain similitude of speculation.
I liked the idea of creating stable coins where the price cap will remain around a fixed value. The global citizens may more accept the decentralized stable digital assets.
Nobody will like the idea of a stable stock. Nobody will buy if the stock price never rises. The risk factor of the investors may come down if the stock prices are kept stable.
In the realm of cryptocurrencies, the idea of stable coins may change the speculative game into a stable one. I think stable coins are going to have a significant impact on the decentralized economy.
Most of the national government banks have been developing their own cryptocurrencies. I will not be surprised if the national banks come with their stable coins and start offering incentives to the users.
Am I mad to call this? Maybe the lovers of cryptocurrencies, who dream one day the price of their choicest cryptocurrency will touch the sky, will call me mad. Perhaps, they desire to have holidays throughout the year with the stellar price rise of their favorite cryptocurrency holdings.
If I were on the board of a cryptocurrency project, I would have advised them to initiate a parallel native stable coin.
With a native stable coin for the users/investors, a cryptocurrency project will get the funds swapped on their native stable coins (if the investors wish to). In that case, the investment will remain under their cryptocurrency project.
I don't dream of retiring with stellar cryptocurrency assets. Do you dream of retiring with a huge cryptocurrency holding and a stellar price rise?
The main objective of cryptocurrency is not to have a speculative price rise.
The main objective is to have peer-to-peer electronic cash.
A stable coin has the prospect of decentralized peer-to-peer electronic cash transactions without a centralized bank of organization.
A stable coin has a stable price without speculative price crash or rise.
I will be happy with a decentralized currency and a stable price.
Very soon, most of the national government banks may come with their stable coins and start offering incentives to the users.
I don't panic about the price crash of cryptocurrencies, because I don't dream to see the cryptocurrencies will reach a stellar high price.
I look forward to seeing how the stable coins are performing in the future.
Unity (Debesh Choudhury)
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Disclaimer: All texts are mine and original. Any similarity and resemblance to any other content are purely accidental. The article is not advice for life, career, business, or investment. Do your research before adopting any options.
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May 12, 2022.