BitUSD price in US Dollar has increased by 0.00% in the last 1 month. BITUSD is down -12.09% against Ethereum and down -10.09% against Bitcoin in the last 1 month. In other words, stablecoin business models such as these expose consumers to quite a lot of risk. The orange coin staged a whopping rebound on hopes for the first US-based spot Bitcoin ETF.
For example, in the Philippines, UnionBank recently announced it will be issuing its own stablecoin. BitUSD itself functions as collateral for a range of other stablecoins pegged to local currencies such as stable.PHP, the Philippine peso stablecoin. Bitspark helps you convert cash to cryptocurrency globally without banks. Send and receive money, and exchange between currencies at exceptional rates. The most important thing to remember here is that fiat-backed stablecoins pose quite some risks to consumers, while crypto-backed stablecoins are built to guarantee liquidation.
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Furthermore, as reserves are held on the blockchain BitAssets are publicly auditable. One way, and this is the most common method, is that you deposit an X amount of US dollar into the issuer’s reserves, and in exchange you get USD pegged stablecoins equal to the same amount of your deposit. For crypto traders, this stablecoin and others pegged to exotic currencies may be of interest as currencies such as the Philippine Peso usually depreciate against the USD in the long term, which means that shorting stable.PHP can be profitable. We have recently launched stable.PHP, a stablecoin pegged to the Philippine peso and backed by BitUSD. The PHP stablecoin has practical benefits as it connects cash-based markets in the Philippines to the world of crypto. In partnership with Okra Solar, the coin is also used to pay for solar electricity bills in Palawan straight from our mobile app.
- A stablecoin is different from ordinary cryptocurrencies like Bitcoin.
- Unlike the latter, when it comes to price discovery stablecoins are not directly subject to the forces of supply and demand.
- The orange coin staged a whopping rebound on hopes for the first US-based spot Bitcoin ETF.
- The PHP stablecoin has practical benefits as it connects cash-based markets in the Philippines to the world of crypto.
- Now, you can trade against other BitAssets — for example, you could buy into BitGold if you’re worried about the economy and believe the price of gold will rise.
Once you’ve obtained BitUSD you have effectively entered the crypto market with fiat. Now, you can trade against other BitAssets — for example, you could buy into BitGold if you’re worried about the economy and believe the price of gold will https://cryptolisting.org/blog/why-profits-dont-equal-cash-flow rise. It’s interesting to see these developments, but it’s also good to know that stablecoins are nothing new. BitUSD is a stablecoin, just like Libra and Tether, but it is completely different in pretty much every way, and here’s why.
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The Securities and Exchange Commission has until Nov. 17 to cast verdicts over a total of 12 spot Bitcoin exchange-traded funds. With the prospects of the SEC greenlighting the first US spot Bitcoin ETF, broad-based enthusiasm sweeps the token space. The massive cryptocurrency flexed over the investment bank’s gloomy prediction and crossed 150% year-to-date gains. Solana holders have a lot to brag about at the family gathering today as the token is up a whopping 1,000% in the past twelve months.
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There are many ways to achieve this, but basically, we can distinguish between fiat-backed, crypto-backed, asset-backed, and algorithmically stabilised. Top cryptocurrency is buoyed higher by growing enthusiasm over the first US spot Bitcoin ETF. BitUSD is a stablecoin that is linked to the US Dollar – it is actually one of the older stable currency options available on the market and is backed by the BitShares core currency, BTS.
Bitcoin USD
This means that behind every BitUSD, there is an X amount of BTS that cannot be touched, traded, moved or spent. This collateral is only released again when the BitUSD is paid back to the network.
A stablecoin is different from ordinary cryptocurrencies like Bitcoin. Unlike the latter, when it comes to price discovery stablecoins are not directly subject to the forces of supply and demand. They are less volatile because they are pegged to the value of a low-volatility asset. First of all, there is no central issuer that you’ll need to trust with your cash. Instead, it is backed up by BitShares’ core token BTS, and locked away in a smart contract on the blockchain. It can be tied to the value of the US dollar, gold, oil, stocks, and so forth.
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The issuer may keep your US dollars in a vault, lend it to other people at a high-interest rate, invest in the stock market, trade against other currencies, et cetera. But this is not the case with issuers of fiat-backed stablecoins — at least not at the moment. Complete cryptocurrency market coverage with live coin prices, charts and crypto market cap featuring coins on 737 exchanges. Ever since the announcement of Libra, there’s been a lot of talk about stablecoins. Crypto is breaking out of its shell and the world is paying attention. And it’s not just corporations like Facebook and Walmart that intend to issue their own stablecoins, the option is also being considered by commercial and even central banks.
