Algorithm Stablecoins - Becoming the greatest Investment of time

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Initially, holding a stablecoin was the craziest thing ever, judging from its centralized nature on the chain, making it twice as risky as holding fiat. Having fiat on one hand is currently inevitable, the world still pretty much runs on its channels, so then, to survive and play through, gotta have them shit notes. That said, the idea of having a stablecoin reserve was totally dumb, one reason was the fact that it is directly backed by fiat, meaning its market stability is solely dependent on the dollar market actions, plus the treasury funds are highly centralized and never really reported duly, which most of them are backed by.

But as development may have it, we are moving into a new phase of financial structures, the industry is taking a turn on these in-system flaws, with this, growing the idea of financial security. The idea of having a stable asset is bear market security. While studying economic trends, the price movements of industrial assets, safety precautions are taken to hold off the season of red wine, stablecoins play an important role in supporting investors' portfolio value.

There has been an increasing demand for solutions to be built around the stability of assets during these seasons, but fiat backed Stablecoins are not exactly the life savers because they pose a certain amount of risks, considering the USD may lose market demands as crypto gains more exposure, as a sustainable investment alternative…


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Algorithm Stablecoins - Becoming the greatest Investment of time

Although not so many understand the many advantages of having an algorithm stablecoin, how to play the markets and grow sustainably while studying market trends. Trading is beginning to show itself to be more fun than Forex had demonized it. Crypto trading is the biggest yet, considering its many options to choose from, and may I just say that arbitration is maybe the most unknown and underrated. That said, algorithm stablecoins are high class assets if you look at the potentials it holds, the wonders and values of it is ever growing as the industry expands.

The investment move that includes buying of foreign currencies when native volatility is sense, it's almost like the business of buying physical properties, knowing that during these bear markets, the prices of things will skyrocket while currency value depreciates. This nature of investment is highly functional in the crypto space with algorithm stablecoins in place.

When you look at HBD and HIVE, how the price changes of HIVE can give room for trading price difference for a profit, you realise that HBD becomes a crucial part of the ecosystem when bear hits the air. Currently, 1.5 HBD can get you more than 1 HIVE! This wasn't possible when hive was trading above $3. So although HBD is just a stablecoin, people seem not to see how stablecoins are actually full packed assets giving opportunities for sustainable growth.

Ignoring the potentials it has in the DEFI industry, with flipping between volatile and stable assets, you end up with a growing bag of income, that if you are great at studying the market's trend. The beauty of it all is that it's able to sustain, maintaining its peg of being equal to a certain price perimeter, regardless of its collateralized asset price difference. This is made functional with its burning and printing mechanism, which is in place to increase and decrease the supply according to price changes…

Posted Using LeoFinance Beta



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Stablecoins are definitely a great tool in every trader or crypto-enthousiast arsenal! In the craze of all the 1000x growths, it is easy to skip over it and miss out on some opportunities.

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