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What is Steiblkoin and why do you need it
Cryptocurrencies have a very high volatility. For example, the volatility of the bitcoin exchange rate is higher than the volatility of gold, stock exchange index funds and other financial assets. This severely limits the mass use of cryptocurrencies. In order to regulate the exchange rate of cryptocurrencies, albeit slightly, it was decided to link them to the value of assets that have long been established in the economy.
From there, cryptocurrencies began to be linked to oil, precious metals and even ordinary money. Cryptocurrencies linked to physical assets show less volatility, so they are stable, and then came to be known as stablecoins.
Popular steebcoins today
• Tether is an old cryptocurrency created in 2014 to combine the emerging crypto market and stable currencies. It is backed by fiat money, the bank in Hong Kong is responsible for their security.
• Tiberius is a stakeholder issued by a Swiss company that manages financial assets. The course is linked to the price of seven precious metals.
• TrueUSD is a stakeholder linked to the US dollar. Created by American programmers based on Ethereum.
• Binance USD (BUSD) - Another 1: 1 bond to the US dollar. Approved and regulated by the New York State Department of Public Financial Services (NYDFS), manufactured by Binance (in partnership with Paxos).
Wikipedia and vc.ru data were used.