Will stabilini utopia for the cryptocurrency market?

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Will stabilini utopia for the cryptocurrency market?

Cryptocurrencies are often reminiscent of a modern version of the Rorschach test. If you closely look into the bitcoin address (like this: 1BvBJDEYstWetqTFn5Au4m4GFg7xJkdN2), you can look into the depths of the human person.

For the maximalists the most ardent of libertarians who hold extreme views, cryptocurrencies are represented by the shelter or rescue from the current corrupt financial and monetary system. In their eyes, only cryptocurrencies can protect citizens from the bizarre and abrupt devaluations of national currencies. The government will not save the banks, because the need for them will disappear, or they simply will no longer “systemically important”.

Will they work?

It is difficult to say. Stabilini may be the next step in the development of the cryptocurrency ecosystem, although they have their drawbacks and limitations.

For example, the market capitalization of the Tether is equal to $ 2.7 billion, and daily oberamergau exceeds 2.4 billion in Other words, the velocity of circulation of this stabilini incredibly high. The issuing company claims that every Tether in circulation is backed by a dollar in reserves, but its a serious audit has still not been conducted. In fact, in the current environment Tether can be called a “systemically important” for the cryptocurrency space. Simple rumors about the insufficiency of reserves (not to mention the real facts) may cause the collapse of the entire ecosystem.

Coins on the basis of smart contracts and algorithmic approaches also have not yet confirmed their safety (as shown by the hacking DAO in 2016, smart contracts are not always reliable). If users lose confidence in a stable coin, it can hit around the cryptocurrency world.

This does not mean that stabilini don’t develop — they are particularly useful for the cryptocurrency system. However, like any other digital currency, they will encounter challenges and problems of growth. Only time will tell how developers will react to these problems.

Probably much easier would be to digitize the dollars?

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