How Much Stablecoin Available on the Blockchain Economy?EXPLAINED

Capital owners who want to integrate blockchain technologies and their projects have become interested in stablecoins in recent years. It is known that there are currently more than 100 types of stablecoins on different cryptocurrency exchanges. Economists specializing in digital assets predict that this number will increase exponentially with different cryptocurrency projects.

There are different types of stablecoins released with different mechanisms with different purposes. Cryptocurrencies with the same value as fiat currencies, namely fiat-backed ones, can be counted first. These are digital assets that have the same value and trust as fiat currencies in circulation. For example, the value of a Euro-backed stablecoin will be in line with the Euro. It is a solution for those who find the euro safe as an investment tool, but also consider cryptocurrencies as risky. 

You can also discover other tips about crypto investments with us!

The other common type of stablecoin is a commodity-backed one such as GLC, etc. Commodity simply means precious metals such as gold and silver. Especially gold is still used as one of the biggest investment tools today. It is possible to experience the trust of gold mines in fast ecosystems of digital assets with a type of stablecoins called commodity-backed. An example of such stablecoins is the low-volatility, high-liquidity GLC, which aligns with Gold. Fiat-backed or commodity-backed are the most common types of stablecoins.. There are also types that follow other cryptocurrencies and types that have an algorithmic mechanism. Although these two types are less used, they also tend to maintain a constant value. EarnCashTeam is ready to clear your questions about stablecoins. Moreover, you can make safe investments and grow your business with more than 50 types of stablecoins.

What Are The Differences Between Stablecoin and Other Cryptocurrencies?

The biggest difference between other cryptocurrencies and stablecoins is volatility. Stablecoins with high liquidity have the mechanisms to experience the least fluctuations. Although there are types that develop this with algorithms and software, the basic principle is to keep 1 fiat currency in reserve for each stablecoin taken. This mechanism ensures that volatility is close to zero. Thanks to its decentralized structure, your transactions through stablecoins are not audited. 

Thanks to stablecoins, you can perform commercial transactions or transfers anywhere, anytime. Cryptocurrencies are constantly changing value depending on the factors such as the amount of investment they receive, the projects developed, and supply and demand rates. Unlike other cryptocurrencies, stablecoins offer great confidence to businesses. All your support regarding cryptocurrencies and stablecoins is provided by EarnCashTeam. You should experience the advantages of stablecoins on the trusted platform EarnCashTeam.

How Do Stablecoins Work? 

We need to understand how stablecoins keep it safe through mechanisms.. Stablecoins maintain the same value as their fiat currencies. This stability makes them more attractive to businesses or capital owners. So how do stablecoins maintain this value? It has a very simple operation. The stability is maintained by keeping the same amount of the fiat currency that it is dependent on for each stablecoin purchased. In this way, there is no contradiction in the supply-demand balance. The balance can be maintained. While there are some stablecoin types that maintain this supply-demand balance with algorithms, the safest method is to keep money in reserve. At EarnCashTeam, we stand by businesses and users who want to take advantage of the endless advantages of stablecoins.