Bitcoin’s successor? More consistent values might make ‘stablecoins’ a safer cryptocurre…

Bitcoin has plunged from a high of almost US$20 000 in December 2017 to as low as US$3 675. So it’s understandable that some cryptocurrency users might be looking for more stability.

With the future of Bitcoin and other cryptocurrencies uncertain, a possible new solution known as “stablecoins” has emerged. This cryptocurrency aims to hold its value better than others, which could offer investors more stability.

Cryptocurrencies are digital tokens that act as a form of currency, effectively allowing people to perform transactions without a bank or intermediary. Most cryptocurrencies have no intrinsic value, and get their price from what others will pay. This, alongside price speculation from those hoping values will rise, has led to significant price volatility in cryptocurrencies.

Unlike other cryptocurrencies, stablecoins aim to maintain their worth better by being redeemable for something else of tangible value, like regular fiat currencies such as US dollars, or even gold….