Amid the mayhem caused by the bearish trends since mid-November, Hard-fork and falling prices of Bitcoins and altcoins have put everyone on their edge. All the Bitcoin specialists who have predicted the market to grow exponentially in 2018 have to eat their words, as the massive downfall has resulted in a total loss of 80% of the market capitalization since the December 2017 high point of $20,000.
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The recent bloodbath has started a selling spree among the investors and crypto enthusiasts alike. The slump has also resulted in most of the startups shutting-down their ventures entirely or a massive staff cut. In a crypto summit held in London by Bloomberg, many panelists acknowledged the fact that cryptocurrencies are on shaky ground and might take time to recover from the recent slump.
However, the panelist also made it clear that the current state of things is more of a roadblock rather than a complete stop. The chief investment officer of CCL Investment Management, Mr. James Bevan said,
“I don’t regard this as an existential crisis, I just regard it as a bump in the road and institutional investors have had plenty of bumps in the road in conventional currencies and transaction systems.”
The Role of Stable Coins to Bring in the Stability Factor
The major issue with current cryptocurrencies is its volatile nature, which was the biggest plus point till last year when it reached the $20,000 mark. The focus has suddenly shifted from making cryptocurrencies as a daily use token and more on its store value, which won’t rise unless it has some backing from a real-world entity.
The panelists believe that Stable coins and smart contracts will be the key to success for cryptocurrencies in 2019. The growth of stable currencies in 2018 has brought it into the center of attention, just like Bitcoin and blockchain became the buzz of town last year.
If anything that would ever see a real-world use case from the cryptocurrency domain, it would have to be the Stable coins. The reasons are plain and simple, it has stable holding against fiat, and it’s comparatively less volatile, so merchants won’t have to bear the brunt of trading bulls overtime.
Tether is a perfect example of how stable coins can withhold the trust of people and separate the currency’s value from the trade market for broader incorporation. Tether or USDT was recently awarded to be the best stable coin through a survey conducted Santiment.
We all have heard the hues and cries from different Altcoin teams and crypto enthusiasts on how the government and banks are on their way to making crypto mainstream. However, it seems they have got it completely wrong. You cannot expect something to be mainstream without proper regulations or backing against a trusted entity.
If cryptocurrencies have to go mainstream, it would have to hold a stable value to be exchanged against the goods we want to buy, since these goods have a fixed price.
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