The Real Problem with Stablecoins

in #cryptocurrency6 years ago

Most people seek stability, whether it is in their career, finances, or health. With regards to personal well-being, volatility of any kind disturbs the peace of mind, as it creates uncertainty, something we as humans are naturally inclined to dislike. Rather we tend to favor a peaceful ride. While we were trapped in this reality, Bitcoin came along and flipped everything upside down.

Bitcoin and the cryptocurrencies that followed in its footsteps ushered in an era of wild volatility. No longer did we seek stability. Rather, extreme price fluctuations stirred something new in the hearts of investors all around the world, who leaped on the cryptocurrency bandwagon in hopes of multiplying their wealth. Some made it while others just missed the train to riches and are still awaiting a recovery of the market. Whatever, the outcome, everyone from their late teens to their eighties heartily hopped on the perilous rollercoaster of cryptocurrencies.

While many were optimistic, some were more critical. They denounced cryptocurrencies as being no different than gambling. Prices soaring and tumbling within a matter of minutes is wonderful for gamblers, but it doesn't help with adoption, which requires a degree of stability. People soon realized that the adoption we prayed for won't happen unless volatility is reduced drastically.

When it appeared as though the chances of adoption were slowly sinking in the quicksand of instability, stablecoins came to the rescue. Stablecoins, with their stable prices, would expedite adoption of cryptocurrencies as a medium of exchange. People could buy and sell goods, transfer money, and protect their assets in times of market uncertainty with stablecoins. Thus, one could argue that stablecoins rekindled the belief that major worldwide cryptocurrency adoption could happen sooner rather than later. And this is good news for everyone.

But for the investor, adoption must be accompanied by price increase. After all, we spend hours researching the next "to the moon" cryptocurrency, and with much contemplation, we invest our hard-earned money expecting a return, not merely adoption. This is reality, and I'm not saying that it's bad.

Also a reality is the perception of stablecoins. The word "stable" is disconcerting to a cryptocurrency investor, for whom stability in other aspects of life is desired, but stability of a coin is equivalent to a wasted investment. If one dollar is always going to be one dollar, why should I buy crypto? I'd rather save myself the time and money by sticking with fiat.

Enter Xank.

Xank is a cryptocurrency that fluctuates in price but simultaneously allows for stable pay functionality. Like most cryptocurrencies, Xank can move upwards in price, and it can also drop like a rock in price. The market decides on how much a Xank coin is worth. Price stability is achieved when parties choose to transfer Xank coins via the Stable Pay mechanism, an innovative coin transfer option that ensures stability in price for the parties involved. Because we have Stable Pay, merchants can receive Xank as a payment option without worrying about the future value of the coin.

Xank is a stablecoin with investment value, and you can learn more about it at xank.io. Be sure to check it out!