Another stablecoin called Tiberius is based on a mix of several rare metals that are used in technology manufacturing.Īs the prices of those goods change, so do the prices of Digix and Tiberius stablecoins. Some are based on natural resources, like Digix Gold, which is supported by gold. Other stablecoins are also tied to currency, such as GYEN, which is backed by the Japanese Yen.Ĭurrency isn’t the only thing backing stablecoins. For example, the most popular stablecoin Tether is pinned to the United States dollar. Instead, the value of a stablecoin is tied to real-world assets that have a tangible market value. Unlike Litecoin or Bitcoin, the price of stablecoins is not based on its use as a currency. Stablecoins present that value in their very name. While it can be fun to watch your crypto’s value bounce up and down, many would prefer to keep their finances predictable. While cryptocurrencies emphasize accessibility and security, stablecoins aim to provide stability.

They’re less popular than mainstream cryptocurrencies, and they can be more challenging to acquire and trade.

Why do stablecoins exist?Īt first glance, it seems like stablecoins are just an alternative to cryptocurrency with an extra hoop to jump through when calculating your finances. Many betting sites even accept stablecoins for payment with many of the same benefits of using crypto. Stablecoins are backed by real assets, such as the United States Dollar, cryptocurrencies, or even raw resources like steel, oil, and gold.īettors looking to take advantage of cryptocurrency have been turning to stablecoin for a more familiar experience than purely digital money. Stablecoins are an excellent choice for someone interested in the benefits of cryptocurrency without dealing with the unpredictable changes in value that come with digital money. Like with crypto, “stablecoin” refers to several digital currencies backed by real-world goods. Stablecoins hope to solve price instability while still offering the benefits of digital currencies stability, speed, and security. One significant concern about cryptocurrencies is their volatile nature new technological advances, national regulation, speculation, and more can have significant impacts on the value of cryptocurrencies. Cryptocurrencies have become an attractive option for bettors in recent years, but there are a few traits that have prevented them from becoming truly mainstream.

Thunderpick coin code