What are the disadvantages of tablconv? Expert's answer
Source:
Professor of Economics, UC Berkeley Barry Eichengreen believes that tablconv has significant shortcomings. The expert criticized the three types of coins are tied to the Fiat. About it writes .
theWhy Tether — not the best investment
According to Eichengreen, cryptocurrency fully backed by Fiat, will not be able to survive in the long term due to its high cost. The organization behind the project, you need to follow a rather large reserves of the dollar. It's not cheap, and questioned the scalability stablon.
The First example is fully backed by coin — Tether, which is pegged to the dollar at a ratio of 1:1. However, earlier news that the company issuing the coin does not have sufficient resources to ensure the Fiat of total cryptocurrencies in circulation.
Partially supported by the token — not the best alternative. Even if the company sustains 50 percent of the coins, the negativity in the market could lead to a massive drain of cryptocurrency. In the end, the Issuer will have to redeem their tokens back, but a limited supply of resources will sooner or later become the cause of the collapse of the project.
Unsupported stablecoins type are the worst tool for investors. No reserve Fiat Issuer maintains price stability by regulation of the release of tokens. In the end, this strategy will lead to the complete devaluation of the crypt.
Earlier, the brothers Winklevoss to launch my very own stablein, backed by the dollar. Billionaires are going to compete with the Tether and gain significant market share.
Recommended
the long-awaited summer. Niche cryptocurrency supported the event and gave unusually hot week. During the last seven days, we learned about the new line of graphics cards from AMD, the mining in TON and hard forks . In addition dealt with the profita...
Co-owner Bitcoin.org Coinbase Pro ridiculed and called a stock exchange Scam
co-Owner Bitcoin.org and most popular forum about cryptocurrency Bitcointalk.org Cobra called Coinbase Scam Pro trading platform American crypto currency exchange Coinbase. In his tweet he wrote «if you read Coinbase Pro backwards, get the word ...
The Ethereum is a cryptocurrency Scam. A new report Chainalysis
When people learned how to create a new cryptocurrency and began to build their infrastructure like marketplaces, in the field began to appear and fraud. According to blockchain auditor Chainalysis for the past two years, fraud in the ecosystem has s...
Related News
VEB and the Grozny mayor's office transferred the housing sector on the blockchain
In February, the first Deputy Chairman of VTB Olga Dergunova positively the prospects of the blockchain. According to her, the technology will improve the speed of transactions and security standards. To move from words to action ...
Hacker 1337. How to hack Etherscan not to cause any harm
Monday on the website Etherscan.io appeared a pop-up message with the numbers 1337. The visitors began to panic and spread rumors about hacking Explorer. really hacked, but the damage from a hacker attack was zero. About it writes...
Statement of the co-founder of Ethereum Vitalik Buterin on growth of the cryptocurrency market have caused the dissatisfaction of the majority of industry participants. Now the entrepreneur explained his position, adding that pros...
Bitcoin behaves like in 2015. What is the result?
the Behavior of Bitcoin in 2015 and in 2018 is extremely similar, noted analysts . As three years earlier, the first cryptocurrency increased in July but dipped in August. Why is it important for the traders now? In 2015, after t...
What is the main advantage of the QR code in the world of cryptocurrency? Expert's answer
During the conference the CEO of Blockchain Cruise BTCC Bobby Lee spoke about the benefits of QR code for Bitcoin. According to Lee, the code gives a great opportunity to quickly raise funds in cryptocurrency. About it writes . Ho...
Fear the ruble: Russian Central Bank conducted its own ICO
recently, representatives of the Central Bank of Russia reported about the successful . However, while Fund-raising has occurred in test mode «sandbox». As the experts said, technically crowdfunding is not had any proble...
Exchange the Winklevoss brothers also launched their own dollar token Gemini (GUSD), is pegged to the dollar. This is the analogue of the Tether, which has repeatedly been accused of manipulation of the exchange rate of Bitcoin. A...
the Competent authorities of the two States sent a formal request to the Department of investigation of criminal Affairs of India (CIDS). The Americans asked local security forces to confiscate the property of the promoters of the...
Blockchain for Champions: French football club PSG will release its own token
the Football team Paris Saint-Germain (PSG) will issue its own cryptocurrency for incentives and extension fanbase. Tokens PSG must be born no later than spring of 2019. About it writes . the Football and cryptocurrency on Tuesday...
Dropped why Ethereum and what to expect next? The analyst United Traders
the Future of Broadcast is not necessary to estimate the current value of the cryptocurrency course the coins too inflated hype around ICO. This column on said leading trader of the company United Traders Alexei Markov. According ...
Remember: tokens Bitconnect removed from the last exchange
One of the most famous financial pyramids finally died. A couple of days ago trade pairs with token BCC has delistyle from the last exchanger. It is now trading Bitconnect completely stopped. About it writes . the the Era Bitconne...
No coins: the trading volume on Localbitcoins has fallen to a five-year low
According to reports , the first week of September will be remembered most P2P low trading volume . The decline in activity is observed almost on all trading pairs is that some of the rest can boast of normal volume. About it writ...
What will be Bitcoin price in the coming days? Response technical analysis
the Last couple of days the price of Bitcoin was trapped in a tight channel, where neither bulls, nor bears have been able to get the benefits. for $ 1,000 last week returned to the bears with a high likelihood of a decline in the...
According to local news publications , founder of the second crypto currency exchange OKEx Old Xu was under arrest. The businessman was suspected of fraudulent activities of some investors, the company WFEE. About it writes . the ...
In Japan there is a serious social problem for families with high income do not know how to save money and invest them so that the amount of funds raised. about the family Ikeuchi that in an attempt to increase savings invested in...
The Treasury empty in August, the ICO has established a record of charges for the last 16 months
All good ends sooner or later. According to Autonomous Research, in August CryptoStream attracted a total of 326 million dollars of funding. As reported , the lowest level in 16 months. the is it Worth investing in ICO investor in...
Alive: 72 percent of the owners of cryptocurrency is ready to increase investments in coins
72% of people who own bitcoin are willing to increase investment in digital assets this year. This is stated in the report of the analytical company SharesPost, which leads . the Survey was conducted among 2490 private investors a...
The head of the European Commission: cryptocurrencies will live, but in need of asset classification
the European Union should concentrate on classifying and determining the status of the cryptocurrency. This was stated by Vice-President of the European Commission Valdis Dombrovskis, his words are quoted . Dombrovskis added that ...
A fork of Bitcoin Anonymous has successfully taken place. Where mine the coin ANON?
early this morning passed hardwork Anonymous Bitcoin, which we at the end of July. The main goal of the project is protection of the anonymity of the users. For this the developers used blackany Zclassic and Bitcoin, and resulted ...
Dropped why Bitcoin? Five reasons the analyst Jonathan Chisman
For fall of Bitcoin in early September, had five of quite specific reasons, and the first cryptocurrency in the near future will be restored. In an interview, said analyst and partner of investment company Distributed Global Jonat...
Comments (0)
This article has no comment, be the first!