While cryptos have several advantages over traditional currencies, many of them are highly volatile. Users are therefore often looking for less volatile solutions. In this article, you will learn about stablecoins and their main advantages.
In the world of crypto-currencies, there is a constant search for stable currencies with less volatility. In the interval of 24 hours, the value of some crypto-currencies can vary up to 200 ℅. Bitcoin experiences relatively little volatility. The stablecoin is free of volatility, its price does not vary. So you can convert your 6000 dollars of bitcoins into stable coins. Even if the price of bitcoin falls, your wallet will still have 6000 dollars in stable coins. The other side of the coin is that even if bitcoin rises, you will still have 6000 dollars in stable coins.
There are up to three types of stable wedges. These are fiat-collateralized, crypto-collateralized and non-collateralized. The former is guaranteed Fiat. In other words, cryptocurrencies are issued by a company with a bank account with the same value as the tokens issued. So when the company issues 10 million stablecoins in dollars, it must have 10 million dollars in its bank account. Crypto-collateralized is supported by another e-currency. So, for example, to issue $500 of the stable coin, $1,000 of bitcoins will be needed. The third type of stable coin is unsecured. The stable coins in circulation in this case manage to maintain their stable value thanks to the smart-contract.
The first advantage of betting on stablecoin is that it is not as volatile and can therefore be a good option for investors. Betting in stable coins allows you to secure at least your money. If you're worried about inflation, then just opt for stablecoins if only for a period.
Thus, stable coins are a good means of payment for foreign bookmakers, especially those from Asia who do not always accept the dollar. Although there are three main groups of stable coins, it should be noted that several stable coins can be distinguished. The most important are Dai, Havven (HAV), Tether (USDT), True USD (TUSD) and USAC. The first two are crypto-collateralized and the last two are fiat-collateralized. They are all worth about one dollar.
It should be noted that almost all stable coins are in dollars. There are a few in euros, including the Lugh, recently launched by the Casino group.
The stable coin could therefore be a good payment method at several bookmakers that accept the crypto-currency. The accounts are held by Société Générale. The auditing firm PWC is also involved in the project, just to check monthly the number of tokens issued and the balance of the account which would be domiciled at Société Générale. There are several brokers you can turn to for trading crypto-currencies.
Several bookmakers could make the stable coin a real vehicle for the development of other innovative payment methods.
The Lugh project is a large-scale project that brings together several players to the point of creating a consortium. The stable coin could then be used not only as a means of payment but also as a customer loyalty tool.
