Ever since the emergence of Bitcoin in 2009, cryptocurrencies have been in the market for quite a while now. But Bitcoin wasn’t the first of the cryptocurrencies. It was only the first that evermade sense. In other terms it was the first one that was stable and actually successful. Let us have a look at the most stable
cryptocurrencies there are so that we can decide which ones are a safe investment. But before that, let us give a thought to the concept of stability.
What is stability?
The benchmark for stability, fortunately or unfortunately, has been set against the good old US Dollar. It is undoubtedly the world’s largest currency and something pretty much every one wishes to own. When an investor wants to consider how purchasing power actually fluctuates, he turns to the USD. Even if the dollar were to fall by a considerable percentage, people would still look up to it. This could also be because of its deeply available liquidity. Its stability, however, is also volatile like any other currency but investors still chose this as a benchmark.
An overview of stable cryptocurrencies – the top cryptocurrencies of 2017
Bitcoin
Bitcoin was the first ever successful cryptocurrency and came with a peer-to-peer decentralized concept. It is the most recognized and most widely accepted cryptocurrency for real world transactions and has almost become a
global cryptocurrency. There is a supply of more than 16.5 million bitcoins and has an approximate market cap of an astounding $80 billion. It is also the costliest virtual cryptocurrencies on the market and is far more liquid than any other cryptocurrency in the market. Bitcoin is probably the best cryptomoney there is.
Ethereum
Ethereum emerged in 2013 as a decentralized platform for applications which could be run the way they were programmed without having any chance of fraud because there is no interference of any third party. A Ethereum Virtual Machine which again is a decentralized one uses an international network of public nodes and executes the scripts. The Ethereum tokens being blockchain assets with value are set against a standard called the Ethereum ERC20 token. Every ethereum token has to meet this standard. It has a price of $300 and a market cap of $29 billion. The founder of Ethereum has also claimed that it will have the same transactional power as Visa within the next two years. Even though a quite stable cryptocurrency, on the whole Ethereum has not shown much promise and since its emergence it has only gone up by 8%.
Tether
Those who are behind Tether claim it is the most stable cryptocurrency right now. It has also gained quite the popularity as a bitcoin alternative. Tether has always been pegging itself against the USD and that has added quite the appeal to it. At any given time, it is pegged to one US Dollar per digital coin. Tether is basically a subsidiary of Bitfinex and issues USDT tokens which operate on a OmniLayer Blockchain which in turn branches from the blockchain of Bitcoin. It implies Tether would lose ground (as would any other bitcoin alternatives) when the price of Bitcoin rises.
The Concept of stability
The reason why Tether claims to be the most stable cryptocurrency out there is because it follows a 100% cash backed principle. Speaking of backing, gold has always had the reputation of having the ability to preserve the purchasing power.People have always wanted to invest in gold. Even the USD looks good when there is a fluctuation in the price of gold. This has led to the emergence of government backed cryptocurrency.
A systematic Approach to Stability
Historically, there were several attempts to make a digital gold currency – some of them even showed some promise for a while. This was way before Bitcoin or the Blockchain technology had emerged. Now that we have blockchain technology, the concept of cryptocurrency and digital gold currency can be brought together into what is called government backed cryptocurrency. It is a compelling concept wherein a token or coin will represent a certain value of gold. The real gold is stored with a custodian.
The underlying fact is that, no matter how much interest cryptocurrency has generated, there is always the clause of volatility attached to them. Even the mighty Bitcoin recently suffered a huge downfall. Cryptocurrency is certainly set to play a major role in the future of money – the cryptocurrency market is evolving and it is evolving rapidly. However, it is quite possible that without the factor of stability, you always have to question yourself if you want to invest in cryptocurrency, because chances are – if the market goes bear, you can end up losing your entire investment.
Buying Government backed Cryptocurrency
Before you go about purchasing a government backed cryptocurrency you will need to have some bitcoin or ethereum. If you are buying a
government backed cryptocurrency during the ICO phase (Initial Coin Offering, during this phase, the token is offered at a set rate. Those who buy early, sometimes also get bonuses), ethereum is your only option. Gold Bits Coin is one such new cryptocurrency which is government backed. Read the whitepaper here. Until 31st January, 2018 it is in the pre ICO phase (a Pre ICO or ICO presale is a token sale that takes place before the actual crowdsale goes live. Only a few tokens are offered, however, they are offered for a discounted price.)
gbc
With the government backing adding stability, more and more government backed cryptocurrencies are being developed. Gold Bits coin is one such is deemed to be one of the top ICO of 2018 and promises to provide the best ROI. Even for those of you who have had their share of doubt about cryptocurrencies and their stability, government backed cryptocurrencies are clearing up that air of scepticism. Read the whitepapers and prepare yourself for the initial coin offering of 2018if you want to make investments that count.
