Title: Whitney Webb: Bitcoin as a Trojan Horse, Political Elite Corruption, Are Stablecoins the New CBDCs? Source:
[None] URL Source:https://www.youtube.com/watch?v=BUHaQkih4SY Published:Aug 25, 2024 Author:Horse Post Date:2024-08-25 22:34:52 by Horse Keywords:None Views:3506 Comments:7
Stablecoins are a type of cryptocurrency that aims to maintain a stable value by pegging their market value to an external reference, such as a fiat currency (e.g., US dollar), a commodity (e.g., gold), or another financial instrument. This pegging mechanism helps stabilize the price of the stablecoin, reducing volatility and making it more suitable for everyday transactions and use cases.
There are several types of stablecoins, including:
Fiat-backed stablecoins: Backed by physical currencies held in reserves, such as TrueUSD (TUSD), USD Tether (USDT), and USD Coin.
Crypto-backed stablecoins: Backed by other cryptocurrencies, such as Wrapped Bitcoin (WBTC).
Commodity-backed stablecoins: Backed by physical commodities, such as gold.
Algorithmic stablecoins: Utilize algorithms to control the supply and demand of the stablecoin, similar to a central bank’s approach to printing and destroying currency. Examples include Havven (nUSD) and DAI.
In general, stablecoins aim to:
Provide a stable store of value
Facilitate transactions and commerce
Offer a cheaper and more efficient alternative to traditional fiat currencies
Enable users to take out loans or insurance backed by their stablecoins Overall, stablecoins aim to combine the benefits of cryptocurrencies (decentralization, security, and mobility) with the stability and predictability of traditional fiat currencies.