The stablecoin fiat collaterlaized are one of the points of contact between cryptosphere (often decentralized) with centralized systems, such as a bank.
Pros stable-coin: stability and protection of capital.
Cons stable-coin: its't "trustless". One of those that I trust the most is Geminidollar because it is regulated by nydfs and fund collateralized in $ is managed by an important American bank.
Topic: Questions regarding stable coins (Read 105 times)
Stable coins are not that bad as many think they are! They are just an other way to back crypto price from volatility ..but, sure, they are not created equal. We have to choose the relatively safer one. This is not of a simple task, as we can't predict the future of these stable coins, due to their semi-centralized nature. I think it is better to use Gold to back crypto-assets ptice than just fiat money. Gold is more stable in terms of price. Moreover, its percieved value is way higher globally. Gigzi is one solid project using just precious metals and gold to back its crypto-assets. Now, this is powerful knowing it has a treasury where precious metal is stored..
I'm just looking for people to give me their honest opinion, pros and cons style, of the three methods currently used to stabilize a cryptocurrency.
Or talk about any other methods currently in use they're aware of.
Or your general thoughts on stabilization.
Whatever floats your boat really.
I'd like to mainly hear pros and cons for the following methods:
1. Fiat Collateralized
2. Crypto Collateralized
3. Non Collateralized (Central bank style smart contract)
Bonus question: Why is the non Collaterized method reliant on continual growth? Why don't fiat currencies face this same problem?
Or talk about any other methods currently in use they're aware of.
Or your general thoughts on stabilization.
Whatever floats your boat really.
I'd like to mainly hear pros and cons for the following methods:
1. Fiat Collateralized
2. Crypto Collateralized
3. Non Collateralized (Central bank style smart contract)
Bonus question: Why is the non Collaterized method reliant on continual growth? Why don't fiat currencies face this same problem?
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