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September 13, 2018, 07:33:21 PM |
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The fashion to launch cryptocurrencies, whose rate is tied to real assets and Fiat currencies, is unlikely to help fix the instability of the crypto market and bitcoin, says Professor of Economics at the University of Berkeley. Although stabilini in terms of value, attractive and stable, their model is imperfect, argues Professor of Economics at the University of California at Berkeley Barry Eichengreen. He considered three categories of stablecoin - fully secured, partially secured and unsecured. According to Eichengreen, the problem is even fully secured by pledges of cryptocurrencies, and chief among them is the high cost of providing reserves, which should fully cover the value of coins in circulation. This is too expensive a model that makes you doubt its scalability.
The main problem of partially secured stablecoins is that rumors and speculative messages that are so common in the crypto market can strongly hit the reputation of such a stablecoin. In case of a sharp fall in the rate of such stablecoins, the issuing company will have to urgently buy out part of the coins on the free market in order to keep the price from falling freely. Unsecured stabilini is the least stable, said Eichengreen. Without a Fiat reserve, the Issuer maintains price stability by regulating the issue of tokens. In the end, such a strategy can lead to a complete depreciation of the cryptocurrency. Previously, the founders of the American crypto currency exchange Gemini Cameron and Tyler Winklevoss announced that the Department of financial services of the state of new York approved the request of the company Gemini Trust to release its first crypto token. Gemini Dollar was released this Monday on the Ethereum blockchain and uses the U.S. dollar as the currency for the security. It is "strictly tied" to the base currency, while the Gemini Trust is responsible for matching the number of tokens in circulation and the dollars used to secure them.
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