Daniel Popa Talks About Stabelcoins on BlockTribune
BlockTribune, one of the most relevant daily news and information sites devoted to bitcoin and blockchain technology, published an article written by our very own, Daniel Popa. The piece discusses some of the biggest issues which occur as a result of economic instability, our attempts to solve them, the solutions have we presented so far – stablecoins, in particular.
He starts from the very beginning – when the need for a standardized measure of value appeared and the establishment of the well-known gold standard system. However, as increasing the amount of gold in reserve was not always feasible, the standard was abandoned in 1931 by Great Britain and the U.S., issuing new monetary system we today refer to as fiat currency.
Namely, instead of pegging value to a particular asset, the most stable fiat currency was selected to serve as a reference point for all other global currencies. Here Popa continues to explain the flaws that still exist within the system, saying that even the U.S. dollar, which is considered one of the most stable fiat currencies, cannot be trusted. To prove the point, he mentions the fact that the U.S. experiences an economic crisis once every ten years, leaving the entire world in a dire condition.
All this was an introduction which explained how the idea of blockchain was born. Popa outlines some of the basic principles of this novel system, along with the benefits of bitcoin, the most prominent cryptocurrency, and the history the fluctuations of its value.
Evidently, instability remained an unsolved issue and people continued to seek for a more trusted and predictable solution. As Anchor is currently working on developing a stablecoin that will deliver the much-needed stability, trustworthiness, and predictability, no one can provide a better explanation on this subject than our CEO. Read Daniel Popa’s entire article on stablecoins here.
Title photo by Pete Linforth, Pixabay.