The crypto world is going through a severe bear run at the moment. A lot of investors have lost a large amount of money owing to this continuous bear run that has been going on for over a year now. People who had invested in this world before the bear run are ‘HODLing’ since then with the hopes that the markets will go up. A Twitter frenzy has taken over and people are growing more and more restless. But in the crypto world, there are certain coins that do not lose or gain their value that much. There are much safer options in the crypto arena already present, the stablecoins.
As opposed to normal crypto coins, stablecoins are backed by fiat or an exchange-traded commodity so that their value remains largely stable. So are they better than other cryptocurrencies? Are they more valuable in the bear run that is going on right now? BX3 Capital partner and co-founder Kyle Asman recently got in touch with BlockPublisher as he expressed his insights regarding stablecoins. Answering the question whether stablecoins are better than normal cryptocurrencies, Kyle said:
In my view, Coinbase’s USDC stablecoin is the best cryptocurrency to own right now. We are in a nasty bear market and as equity investors do in bear markets, going to cash is king. In the crypto world, USDC is the cash.
Stablecoins essentially act as stable cash in the crypto world. So in the times of bear runs, going to cash can prove to be beneficial as the value does not deteriorate, losses can be saved. The bear run of the crypto market has helped stablecoins gain a lot of attention from the financial world.
The technology lying underneath stablecoins is blockchain. So the features that make blockchain important and valuable such as trust, transparency, privacy etc. are automatically inherited in the stablecoin world. Being backed by currencies or exchange-traded commodities, stablecoins tackle the burning issue of volatility that is associated with cryptocurrencies. The price does not fluctuate that often. This makes the usage of stablecoins natural for large scale money transfers.
Organizations and big corporations can get large benefits from stablecoins as massive transactions can be made without worrying about the prices drops or gains. As of now, cryptos are not being used to carry out payments and massive transactions because the prices shift in a matter of hours. It becomes only natural not to use cryptos as a payment making option. With stablecoins, it all changes. Stablecoins can also help expand the usage of cryptocurrencies across the globe as the underlying technology, blockchain, gets more highlighted.
In this bear market where prices of various coins and tokens and fluctuating at a massive rate, stablecoins can surely prove to be very helpful.
SEE ALSO: Here’s Why Stablecoins Are Here to Stay