The Algorithms That Control the Cryptocurrency Market

Algorithms are at the heart of 21st century life, invisibly controlling many of the systems we use and take for granted on a daily basis. Pervasive algorithms determine the entertainment we consume (Netflix, Spotify), the information we read (Google), and the chatter we hear (Facebook, Twitter). It’s no different in crypto, where complex and ever-evolving algorithms silently govern core processes.

Also read: How to Mix Your Bitcoins Using Coinjoin for Greater Privacy

Algorithmically Controlled Coins

Algorithmic stablecoin projects have come to the fore in recent years, although fiat-backed stablecoins such as Tether (USDT), USD Coin (USDC), and True USD (TUSD) capture most of the volume. While the concept of dollar-pegged stablecoins is easy to grasp, algorithmic stablecoins are a little more complex. Essentially, they are cryptocurrencies which attain price stability by algorithmically expanding the coin’s circulating supply to reflect market…