Stablecoins: Money of the Future

Stablecoins are currently the fastest growing sector of the cryptocurrency market, worth $186 billion; these constitute cryptocurrencies whose values are pegged to real life commodities like gold or the US dollar.

There are numerous stablecoins on the market, which fall into three main categories: fully collateralized, partially collateralized, and uncollateralized.

Uncollateralized stablecoins are designed to increase and decrease supply in the same way a bank buys and sells its debt to stabilize purchasing power.

Broadly recognized as the most reliable type of stablecoins are those which are fully collateralized with steady units of value such as gold or US dollars.

Worldwide, stablecoins in their fundraising ICO phases have attracted millions of dollars' worth of investment from reputable multi-national corporations.

A vital element required for stablecoins to flourish is better market regulations, as many are concerned about the security and legitimacy of cryptocurrencies.

Stablecoins in possession of a yield system promote the use of a currency whilst equally distributing back wealth.

Transparency will be intrinsic to stablecoins' future success.

Stablecoins have the potential to transform the cryptocurrency scene and move the blockchain technology into the mainstream.

There are bound to be initial issues with innovative technologies, and stablecoins will need concrete guarantees of their stability, greater governance, and transparency before they're projected into the mainstream.