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- Insights
- Cryptocurrencies
- Stocks
- White Papers
- Industry
- Geography
Everyone has heard of cryptocurrencies and how they have made people all over the internet become overnight millionaires by investing in the crypto market. However, many people can lose money by investing in crypto too. This happens for various reasons. People often go into the crypto market blind without much knowledge of it, and they can invest too much money in highly volatile currencies. Many stablecoins, such as Adirize DAO (ADI), may ease your worries for those who don't want to lose money investing in volatile currencies.
Most stablecoins are crypto coins whose value is tied to another currency or financial commodity, for example, the US Dollar or gold. This makes them, like the name suggests, more 'stable'. The coins are a breath of fresh air in a market where most coins like Bitcoin (BTC) are highly volatile; having currencies that remain mostly stable and do not have huge jumps can protect you and your money.
Stablecoins help people carry out routine transactions via cryptocurrency in an easier way. A currency that is not legal tender has to be significantly stable to function as a means of payment, guaranteeing those who accept it that it will maintain purchasing power in the near future. Even 1% daily changes in stablecoin are uncommon. Therefore, most merchants will likely accept stablecoins as a form of currency.
Since Bitcoin's (BTC) recent success and popularity, the price of the coin has been a rollercoaster of ups and downs. Cryptocurrencies' success often depends on the feelings and projections of the public. Bitcoin's price can often depend on supply and demand, government regulations, how investors feel about the currency and how media and celebrities portray the currency.
An example of the currency's volatility can be seen in how Bitcoin recently reached an all-time high in November 2021, peaking at $69,000. However, since then, it had been falling until it bottomed at $17,708 on the 18th of June, 2022. Though it has recently been slowly climbing up, it still has hiccups here and there and the chances of it getting back to its peak this year a very low. Though you can occasionally make money fast with Bitcoin, you can also lose it at a similar pace.
Ethereum (ETH) as an altcoin is already volatile. However, after the recent Merge in September 2022, it is difficult to tell what public perceptions will be like. So Ethereum may become increasingly more volatile. The volatility of the cryptocurrency has been up and down throughout the year. According to Statista, on the 26th of May 2022, it reached 2.43% in volatility, the highest it reached throughout 2022. However, the most current result shows that on the 22nd of September 2022, it reached 0.95%. However, this could go up or down on its own accord. World events can often also contribute to the volatility of the crypto market. For example, the recent war between Russia and Ukraine knocked the crypto market for a loop, Ethereum included.
Adirize DAO is a stablecoin that is prepping for release in the near future. During the last few turbulent years economy has been significantly affected. Having money in banks is not the safest way to store your money anymore. Having other people control your money when there is a financial crisis is worrisome. Any stablecoin can provide an easy way for you to conduct typical transactions with your money in cryptocurrency, so what makes Adirize different?
Adirize plans to be a decentralised stablecoin. Most stablecoins are attached to some financial commodity like gold or a currency. This means they are not entirely decentralised like your typical cryptocurrency; this may make people not want to invest in stablecoins as much as a third party is still involved when handling your money. Adirize wants to make a decentralised stablecoin that will allow people to use cryptocurrency for typical transactions.
Conventional cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) are volatile. Though they can make you money, you can also lose it quickly. Stablecoins are a much less volatile option. However, they are often centralised, whereas the yet-to-be-released stablecoin Adirize (ADI) plans to be decentralised, allowing investors to have stability and more control over their money.
