To many people out there, it is believed that Crypto Currencies are the future of money and transactions. This is one of the most pertinent thing to happen in this 21 century world.
This article is for the Crypto lovers and believers out there, both traders and miners.However, it’s true that many people are still crypto-wary and don’t completely understand how digital currencies gain value since it's not physically seen, others who have followed crypto’s progress since Bitcoin was first mined in 2009 understand that it is relevant and has benefits and see crypto, especially stablecoins, as being even better than traditional money.
Crypto Currencies Are More Efficient Money
Cryptocurrencies are digital assets that combine the blockchain technology known as "The science of cryptography" to enable quick financial transactions, inexpensively, and more securely. Decentralized crypto does everything that traditional normal money does, and far more because it is global and not subject to totalitarian government controls or any third-party interference. Isn't that a nice feature?
For example, Maker’s of decentralized stablecoin Dai is borderless (e.g., one Dai token is worth the same in the United States as it is in South America, Europe, Africa or anywhere else in the world) and exchanged peer-to-peer, without intermediation by any outside entity. The fact is that users are not only able to transact with one another directly at anytime and from anywhere, they do so on their own without any third party interference, without the need to trust a central bank or counterparty, which gives them complete control of their money.
How Crypto Currencies Get Their Value
Cryptocurrency, like any other currency, must be able to hold value effectively before it can work well as a medium of exchange. But where does that value come from and what makes for good storage of it?
Both Bitcoin and Ether (ETH; the digital coin of a leading blockchain called Ethereum) derive value as a result of supply and demand, making both volatile assets. Bitcoin’s volatility is legendary. ETH is volatile too, but its value is tied not just to the market, but also to its usefulness to both the Decentralized Finance (DeFi) and Centralized Finance (CeFi) movements. ETH supports the many smart contracts platforms built on the Ethereum blockchain, including the Maker Protocol and the dapps built by developers to work with Dai and the Protocol.
Dai, meanwhile, is a stablecoin that maintains its value thanks to the collateral assets that back it, and the Maker Governance process which modifies Dai monetary policy to maintain the cryptocurrency’s soft peg to the US Dollar. Currently, the assets that Maker Governance has accepted as collateral in the Maker Protocol are ETH and BAT (the Basic Attention Token, which is an Ethereum blockchain-based digital advertising token). Because the Protocol demands over-collateralization, the value of the total collateral that backs Dai in the system is always higher than the total value of Dai in circulation. This over-collateralization ensures Dai’s stability, making it a better (that is, much less volatile) store of value than Bitcoin and Ether, and a valuable medium of exchange.
It's Utility Grows as DAI Adoption Rises
Digital currency addresses the genuine capability of the web to address the issues of fiat cash. Today, the most productive type of trade is the immediate and minimal effort move of cash between individuals anyplace, paying little heed to their monetary standing. As Dai selection rises, and the general worth of crypto turns out to be more apparent, an ever increasing number of individuals will understand its benefits and by and large value. In case you're keen on a value stable money that you control, produce Dai today on your own terms.
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Crypto Currencies Are Inexpensive To Exchange
Crypto Currencies are generally not expensive to exchange in the sense that onlike fiat, the normal money, they are stored in wallets. These Currencies required just little tokens to exchange and are stored in different wallets, which are safe. Users of Crypto Currencies do not need to be associated with a third party bank or so. These Currencies are rather mined or bought from the diffrent Crypto Currencies companies or through peer-to-peer. One good aspects of Crypto Currencies is that it's value tires at times to an extent, although it falls at time, but one can make a whole lot of money from these rises onlike the fiat money kept in the bank.
The lesser The Supply, The Higher the Value
Crypto Currencies gaines it value when there are lesser supply (circulation) of Currencies. The supply in this context, means the rate of production although it's digital. Also as Dai selection rises, and the general worth of crypto turns out to be more apparent, an ever increasing number of individuals will understand its benefits and by and large value.
Overview
Crypto Currencies are more efficient Money, it's empowering and inexpensive to exchange, One good aspects of Crypto Currencies is that it's value tires at times to an extent, although it falls at time, but one can make a whole lot of money from these rises onlike the fiat money kept in the bank.
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