DIGITAL GOLD: THE TRUSTED STABLE COIN

Blockchain technology as a unit has a very wide spectrum, likewise cryptocurrency also has a wide spectrum that makes it possible to place stablecoins as part of cryptocurrencies. Tether coin which is the first stable coin was created in the year 2014, but before that, there was a precursor of it, called Realcoin, before it was renamed tether at that particular year. Since then, there have been a number of other stablecoins like as GUSD, TUSD, DAI, USDC, PAX etc

ABOUT STABLECOINS

Stablecoins, like the name implies are a group of cryptocurrencies whose values are guaranteed by other existing assets. In the current dispensation, almost every stablecoin on the market have their values pegged as $1 and are backed by the US dollar, which is a fiat. These assets, such as the USD, are placed in reserve, for example in banks, as collaterals to back up the coin and allow its stability. Stable coins are usually used to guard against the crypto market instability.

ADVANTAGES ASSOCIATED WITH STABLE COINS

Stablecoins aside been cryptocurrencies also comes with their own special qualities and some are highlighted below;
When it comes to transparency, stable coins can be trusted since there are built on decentralized blockchain technology, the explorer of blockchain also makes every transaction visible to whoever is interested in it. Again, there are regular audits to provide full transparency and fairness. Any stablecoin that is not built on the decentralized blockchain would never be trusted by any cryptocurrency enthusiast.

There are not restrictions on borders when it comes to making transactions with stable coins. Holders or users can easily transfer them to wherever they want without any form of limitations. This is not the laws in countries like Venezuela and some other areas, where their fiats are not allowed to be taken out of their official jurisdictions, not even neighboring countries. I guess this is why most people in Venezuela are now venturing into cryptocurrencies especially bitcoin. Unfortunately, bitcoin is always affected by the volatility on the market, whereas stablecoins are true to their value irrespective of the turbulence on the cryptocurrency market. This property helps to preserve their value or price.

THE OPERATION OF STABLE COINS

There would always be a serious issue with having cryptocurrencies, had it not been the existence of stable coins considering the volatility of cryptocurrency. If one is paid for a particular service other cryptocurrencies aside stablecoins, anything could happen within a short period of time, one might lose a lot or make some gains. The same criteria can be applied when one is given a loan in any common cryptocurrency. There are three ways by which stablecoins operates.

Stablecoin is either guaranteed by paper currency or by commodities, such as physical assets, that makes them have an unchangeable value like $1 as in the case of US Tether.

Stablecoins can be backed by crypto, however, a lot of people are more scared of this that is why it is overstretched. Where $2 worth of crypto can be used as a guarantee for $1 of Stablecoin. Notwithstanding, almost everything is possible under the sun.

Stablecoins can also be noncollateralized. In this sense, the supply and demand of coins on the market is used largely to maintain a particular value for the stablecoin. This is key to ensure that it maintains the $1 price tag of the US dollar.

CHALLENGES WITH MOST STABLECOINS

Many cryptocurrency enthusiasts and blockchain technology professionals alike have raised an eyebrow about the credibility of stablecoins. Even the most popular among them, tether (USDT) is doubted by many to have the true value of the US dollar as it claimed to have a collateral in a reserve. Even though, an unofficial audit was done not long ago, yet it was generally not accepted to be a representation of the true facts, which has also raised a lot of controversies. At the latter part of 2017 when the popular Bull Run occurred, Tether was commonly speculated to have manipulated the crypto market, especially the value of bitcoin.

Again, stablecoins have usually been considered as centralized and controlled by a particular group of people, who manipulate the volume for their selfish gains. In spite of all these, it is commonly said to be a safe ground for users or investors, although, there are some doubts that they may provide little to no financial benefits.

GOLD-BACKED STABLECOIN
There is no need to drag issues as there is no need to waste time. It is always better when a stablecoin is created in very a decentralized manner, more importantly in such a way that it is not susceptible to any form of manipulation and that everything is done fairly to all parties involved. Blockchain technology is said to be decentralized and transparent. Digital Gold token, a gold-backed stablecoin has been designed under such transparent and decentralized basis of blockchain technology. Get more from here; https://gold.storage/

GOLD token is not like the other form of stable coins that are pegged to the USD hence require approval from the US government, in order to be approved as a trusted stablecoin. Digital Gold token is guaranteed by real gold reserve hence does not need any form of approval from the US government or any other government in the world. To ensure transparency, all audits are conducted by a trusted third party and all statistics are available to the general public.

For more information about Digital Gold, please visit:

Website : https://gold.storage

Whitepaper : https://gold.storage/wp.pdf

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