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Difference between stablecoin and bitcoin

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Stablecoin is a cryptocurrency that has non-volatility price and Bitcoin is a cryptocurrency whose price is volatile in nature. The concept of stablecoins is introduced only to minimize the price volatility of Bitcoins. – PowerPoint PPT presentation

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Title: Difference between stablecoin and bitcoin


1
Stablecoin Vs Bitcoin
  • www.bitdeal.net

2
BITCOIN
  • Bitcoin is the first digital currency developed
    by Satoshi Nakamoto in 2008. Bitcoin and
    Ethereum are the most popularly used
    cryptocurrencies. The exchanges of this type of
    virtual currency are encrypted and decentralized.

3
STABLECOIN
  • The headlines of the crypto market in recent
    months has the word "Stablecoins". Stablecoins
    are also digital currencies developed to minimize
    the volatility of the price. These are
    cryptocurrencies that are pegged to the value of
    any cryptocurrency, fiat currency, or trade
    commodities or any other commodities.

4
STABLECOIN Vs BITCOIN
  • Stablecoin is a cryptocurrency that has
    non-volatility price and Bitcoin is a
    cryptocurrency whose price is volatile in nature.
    The concept of stablecoins is introduced only to
    minimize the price volatility of Bitcoins.
  • Bitcoin is one of the most popular
    cryptocurrencies whose price rise and fall
    simultaneously which makes traders wait for the
    right time to exchange their Bitcoins.
    Stablecoins whose value merely equal to any fiat
    currency and doesn't change accordingly helps in
    the exchange of them anytime by the stablecoin

5
TYPES OF STABLECOIN
  • As discussed earlier, Stablecoins are designed
    with the non-changeable price of any assets. Here
    let us look at the types of stablecoins.
  • There are three types of stablecoins as follows
  • 1. Fiat-collateralized
  • 2. Crypto-collateralized and
  • 3. Non-collateralized
  • 4. Commodity-collateralized

6
TYPES OF STABLECOIN
  • Fiat-Collateralized Stablecoins
  • This type of stablecoins are those which
    undergoes the pegging process to fiat currency or
    real-world assets such as US Dollar, Euro, Yen or
    Pound.
  • Crypto-Collateralized Stablecoins
  • Crypto-collateralized stablecoins are one which
    is backed to some cryptocurrencies. This
    stablecoins maintain their 11 ratio through
    over-collateralization.

7
TYPES OF STABLECOIN
  • Commodity-collateralized stablecoins
  • Some stablecoins are backed to precious metals
    such as Gold, or any other metals or commodities
    such as oil are known as non-collateralized
    stablecoins. This type of stablecoins is also
    called Commodity-collateralized stablecoins.
  • Non-Collateralized Stablecoins
  • The stablecoin that is not backed by any assets
    but use algorithms to adjust the supply or demand
    of the stablecoin is known as Non-Collateralized
    Stablecoins

8
Real-World Applications of Stablecoins
  • 1. As a day-to-day currency
  • 2. In streamlining P2P payments and recurring
  • 3. Affordable and Fast remittances for migrant
    workers
  • 4. Protection from local currency crashes
  • 5. Improved cryptocurrency exchanges
  • Explore here why Stablecoin is becoming popular
    than Bitcoin
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