Difference between stablecoin and bitcoin

1
Stablecoin Vs Bitcoin

• www.bitdeal.net

2
BITCOIN

• Bitcoin is the first digital currency developed
  by Satoshi Nakamoto in 2008. Bitcoin and
  Ethereum are the most popularly used
  cryptocurrencies. The exchanges of this type of
  virtual currency are encrypted and decentralized.

3
STABLECOIN

• The headlines of the crypto market in recent
  months has the word "Stablecoins". Stablecoins
  are also digital currencies developed to minimize
  the volatility of the price. These are
  cryptocurrencies that are pegged to the value of
  any cryptocurrency, fiat currency, or trade
  commodities or any other commodities.

4
STABLECOIN Vs BITCOIN

• Stablecoin is a cryptocurrency that has
  non-volatility price and Bitcoin is a
  cryptocurrency whose price is volatile in nature.
  The concept of stablecoins is introduced only to
  minimize the price volatility of Bitcoins.
• Bitcoin is one of the most popular
  cryptocurrencies whose price rise and fall
  simultaneously which makes traders wait for the
  right time to exchange their Bitcoins.
  Stablecoins whose value merely equal to any fiat
  currency and doesn't change accordingly helps in
  the exchange of them anytime by the stablecoin

5
TYPES OF STABLECOIN

• As discussed earlier, Stablecoins are designed
  with the non-changeable price of any assets. Here
  let us look at the types of stablecoins.
• There are three types of stablecoins as follows
• 1. Fiat-collateralized
• 2. Crypto-collateralized and
• 3. Non-collateralized
• 4. Commodity-collateralized

6
TYPES OF STABLECOIN

• Fiat-Collateralized Stablecoins
• This type of stablecoins are those which
  undergoes the pegging process to fiat currency or
  real-world assets such as US Dollar, Euro, Yen or
  Pound.
• Crypto-Collateralized Stablecoins
• Crypto-collateralized stablecoins are one which
  is backed to some cryptocurrencies. This
  stablecoins maintain their 11 ratio through
  over-collateralization.

7
TYPES OF STABLECOIN

• Commodity-collateralized stablecoins
• Some stablecoins are backed to precious metals
  such as Gold, or any other metals or commodities
  such as oil are known as non-collateralized
  stablecoins. This type of stablecoins is also
  called Commodity-collateralized stablecoins.
• Non-Collateralized Stablecoins
• The stablecoin that is not backed by any assets
  but use algorithms to adjust the supply or demand
  of the stablecoin is known as Non-Collateralized
  Stablecoins

8
Real-World Applications of Stablecoins

• 1. As a day-to-day currency
• 2. In streamlining P2P payments and recurring
• 3. Affordable and Fast remittances for migrant
  workers
• 4. Protection from local currency crashes
• 5. Improved cryptocurrency exchanges
• Explore here why Stablecoin is becoming popular
  than Bitcoin