Why Stablecoins — 2020: Comprehensive Overview Of Their Foundations And Future

A Deep Dive into the Fundamentals, Benefits, Risks, Implementations & Future Potential of Stablecoins.

Ruben Merre
Oct 13 · 19 min read
Ruben Merre: Why stablecoins: a comprehensive overview of their foundations and future. Cryptocurrency tought leadership.
Ruben Merre: Why stablecoins: a comprehensive overview of their foundations and future. Cryptocurrency tought leadership.

Introduction

Evolution of stablecoin market cap, by Ruben Merre: Why stablecoins, a comprehensive overview of their foundations & future.
Evolution of stablecoin market cap, by Ruben Merre: Why stablecoins, a comprehensive overview of their foundations & future.
CoinMetrics network chart of stablecoin supply on 28 September 2020
Coin Metrics c-founder Nic Carter on Twitter about stablecoins growth.

Quick definition: what is a stablecoin?

How are stablecoins different from Bitcoin and other cryptocurrencies?

Top 10 stablecoins. By Ruben Merre: “why stablecoins”.
Top 10 stablecoins. By Ruben Merre: “why stablecoins”.
The top 10 stablecoins in market cap per October 12, 2020. Source: CryptoSlate.

Different kinds of stablecoins

4 different types of stablecoins: fiat-backed; commodity-backed; crypto-backed, and non-collateralized. By Ruben Merre.
4 different types of stablecoins: fiat-backed; commodity-backed; crypto-backed, and non-collateralized. By Ruben Merre.
Different types of stablecoins. Source: The Daily Hodl.

Fiat-collateralized stablecoins

Commodity-collateralized stablecoins

Crypto-collateralized stablecoins

Algorithmic (non-collateralized) stablecoins

Why have stablecoins become popular?

Some use cases for stablecoins. Source: Blockchain.com. Ruben Merre CEO NGRAVE stablecoins article.
Some use cases for stablecoins. Source: Blockchain.com. Ruben Merre CEO NGRAVE stablecoins article.
Some use cases for stablecoins. Source: Blockchain.com.

Use as a daily currency

Peer-to-peer (P2P) payments

Cross-border payments and financial inclusion

Asset protection and store of value

Risks of stablecoins

Securing stablecoins

Breaking the 1:1 peg

Tie to fiat currencies

Regulations and policies

International and global concerns

Other risks

What is the future of stablecoins?

Latest notable stablecoin developments

Competition and threats for stablecoins

3 notable CBDC implementations

Conclusion

Ruben Merre, CEO and co-founder of NGRAVE. #TheColdestWallet #OwnYourAssets cryptocurrency hardware wallet ZERO.
Ruben Merre, CEO and co-founder of NGRAVE. #TheColdestWallet #OwnYourAssets cryptocurrency hardware wallet ZERO.

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Ruben Merre

Written by

Co-Founder & CEO NGRAVE | www.ngrave.io | Protecting Your Private Keys From A — Z. The Coldest Wallet.

The Capital

A publishing platform for professionals in business, finance, and tech

Ruben Merre

Written by

Co-Founder & CEO NGRAVE | www.ngrave.io | Protecting Your Private Keys From A — Z. The Coldest Wallet.

The Capital

A publishing platform for professionals in business, finance, and tech

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