Join Our Mailing List
Monday December 11, 2023
Bitcoin (BTC) $41,191.04   Ethereum (ETH) $2,210.31
  • Events
  • News
    • Blockchain Technology
    • Capital Raising
    • Crypto Exchanges
    • Crypto Payments
    • Gaming & Betting
    • Investment Management
    • M&A
    • Mining
    • Networks & Protocols
    • Security
    • Vendor Technology
    • Wallets
Trezor Model T
CryptoNinjas
  • Crypto & Blockchain Links
  • Real-Time Market Data
  • Bitcoin ATM Map
  • Token Offerings/Listings
No Result
View All Result
CryptoNinjas
Home Investment Management

Dear Crypto Investor, The Ideal Stablecoin Already Exists

Published by CryptoNinjas.net
11/08/2018

On Monday, 8th January 2017, the total market capitalization of all traded cryptocurrencies reached its historical high at $828 billion USD — a 40x gain for those who invested in an index tracker at the beginning of the year. At the time of writing, the crypto market is valued at $209.6 billion USD, losing over 75% of its valuation only 10 months after the all-time-high, and shrinking the capital of millions of investors worldwide.

In an attempt to capitalize on the bullish momentum of December 2017, Venezuela’s president Nicolas Maduro announced the launch of the Petro coin – which failed to attract the capital of crypto investors and rescue a government on the verge of bankruptcy. According to economist’s estimates, the nation’s hyperinflation had scored to nearly 2400%.

Over two million Venezuelan nationals have now fled a country that not so long ago was regarded as the region’s most stable democracy. The collapse of Venezuela’s economy has brought a shortage of basic goods such as food and medicine, in addition to skyrocketing crime rates – earning Caracas the title of murder capital of the world, where nine in ten murder cases remain unsolved.

As people in Venezuela search for stable alternatives to the local currency for daily transactions like paying for groceries or selling real estate, a number of blockchain companies have gained popularity among locals. Vaultoro, a crypto commodities exchange that allows users to buy and sell bitcoin for digitally allocated gold, is commonly used by citizens wanting to store value away from the effects of hyperinflation.

[perfectpullquote align=”right” bordertop=”false” cite=”” link=”” color=”” class=”” size=””]”Gold, linked with the blockchain by projects such as Vaultoro, could be the missing piece in creating a stable cryptocurrency ecosystem.”[/perfectpullquote]

Take for instance the case of Juan Sanchez, a 42-year-old electrical engineer that has been trying to sell his apartment located in the east side of the city to start a new life with his family in Chile. In 2007, his apartment was valued at $250,000. Today, he would consider it a great deal if he gets $50,000.

Carrying out that transaction in Bolivars (the local currency) would be way too risky as the value of the Bolivar can drop from one day to the other, dragging the value of the estate with it. Usually, Juan would turn to the US Dollar and use a foreign bank account to conduct the transaction. However, to hold and transact with foreign currency in Venezuela is illegal.

Instead, Juan is selling his property in Bitcoin and using Vaultoro to exchange it into a stable store of value: investment grade (99.99%) gold. By using Vaultoro, Juan can hedge against the risk of BTC’s price fluctuation and access his holdings digitally once he has settled in Chile without the need for a banking institution.

Cryptocurrencies such as Dash are also making their way into the country. The DASH DAO, who recently invested in Vaultoro, has allocated over $800,000 to projects such as the Dash Help Support Center and Dash Merchant to help educate consumers and promote the usage of cryptocurrency in Venezuela.

By September 2018, more than 1,000 merchants in Venezuela accepted Dash as a payment method, including food franchises such as Subway, surpassing the number of merchants affiliated to Dash in the United States.

Stablecoins are in demand. The query ‘stablecoin’ has over 1.3 million results on Google and its own Wikipedia entry. Gold, the favorite commodity used by the wealthy and powerful for over three thousand years to protect their capital against bear markets and apocalyptic times, may be about to become that mainstream stablecoin that investors and consumers are claiming for.

Venezuela and other emerging markets are becoming cryptocurrencies’ sandbox. Projects such as Dash and Vaultoro are in high demand in these countries where the government-controlled monetary system has virtually collapsed.

As the world transitions to a more distributed financial system. Currency stability might be the biggest obstacle to the mass adoption of cryptocurrencies. Gold, linked with the blockchain by projects such as Vaultoro, could be the missing piece in creating a stable cryptocurrency ecosystem.

35
SHARES
SubscribeE-MailXFacebookWhatsappTelegramRedditLinkedin

Related News

Crypto-gold exchange Vaultoro lowers fees, increases withdrawal limits

06/23/2022
Crypto-gold exchange Vaultoro lowers fees, increases withdrawal limits

Vaultoro, the cryptocurrency-based gold & precious metals exchange, today announced new updates and platform enhancements for users. See below for more details: Limits - Daily limits on Vaultoro have been increased, and users can...

Read more

Ether (ETH) with physical gold and silver can now be traded on Vaultoro

02/04/2021
Ether (ETH) with physical gold and silver can now be traded on Vaultoro

Vaultoro, the cryptocurrency-based commodities exchange, has announced that users can now trade Ethereum with physical allocated gold and silver. Vaultoro supports an ETH wallet to deposit ether for trade with precious metals. Every verified...

Read more

Crypto/gold exchange Vaultoro adding OTC desk, silver, LTC, ETH

01/10/2020
Crypto/gold exchange Vaultoro adding OTC desk, silver, LTC, ETH

Vaultoro, the first real-time bitcoin/gold exchange, has freshly published a Q1 2020 company roadmap. And the new year will bring many enhancements to the crypto commodities exchange. After a busy 2019 in which Vaultoro...

Read more

Vaultoro revamps interface, releasing Lightning-based tokenized gold

10/01/2019
Vaultoro revamps interface, releasing Lightning-based tokenized gold

Vaultoro, the market’s first gold crypto-hedging solution since 2015, has just released a revamped version of its commodities exchange based on a new C++ modular engine optimized for high-frequency trading, clocking up to 1.2...

Read more
Load More
Read All Comment

Where to Exchange

Leading crypto suite in Spain & LATAM Visit
European bitcoin exchange Visit
Swap & buy 150+ cryptocurrencies Visit
First U.S. regulated BTC exchange Visit
  • Trending
  • Latest
The Best Crypto Casinos: Where Blockchain Meets Gaming Excitement

The Best Crypto Casinos: Where Blockchain Meets Gaming Excitement

12/08/2023
Crypto quant trading platform AlgoTrader completes CHF 3.7M Series A funding

Crypto quant trading platform AlgoTrader completes CHF 3.7M Series A funding

01/08/2020
LiquidApps releases customizable enterprise blockchain specific solution: LiquidChains

LiquidApps releases customizable enterprise blockchain specific solution: LiquidChains

02/20/2020
Global Brain invests in Omise, creator of crypto ecosystem OmiseGO

Global Brain invests in Omise, creator of crypto ecosystem OmiseGO

10/22/2018
Cryptocurrency Payments for Insurance: Are Insurance Companies Really Embracing Bitcoin and Altcoins?

Cryptocurrency Payments for Insurance: Are Insurance Companies Really Embracing Bitcoin and Altcoins?

11/20/2023
4 Things We’ve Learned About Owning Bitcoin in 2023

4 Things We’ve Learned About Owning Bitcoin in 2023

11/13/2023
Fuse Network welcomes Liquify as new blockchain infrastructure partner

Fuse Network welcomes Liquify as new blockchain infrastructure partner

10/02/2023
BITmarkets – Spot, Futures, Margin Trading with 150+ Cryptocurrencies

BITmarkets – Spot, Futures, Margin Trading with 150+ Cryptocurrencies

08/28/2023
  • Home
  • Directory
  • Data
  • About
  • Contact
SUBSCRIBE

© 2016 - 2024 CryptoNinjas Disclosures | Privacy Policy

  • Home
  • Crypto Links
  • Market Data
  • Blockchain Tech
  • Exchanges
  • Capital Raising
  • Vendor Technology
  • Token Offerings/Listings
  • Payments
  • Wallets
  • Bitcoin ATM Map
  • Conferences & Events
  • About
  • Contact
No Result
View All Result

© 2016 - 2024 CryptoNinjas Disclosures | Privacy Policy