Why cryptocurrency is need of the hour?

 

Why cryptocurrency is need of the hour?

 

These days, cryptocurrencies are getting massive attention from big investors, and many people are devoting their interest to investing in crypto. 

In 2021, cryptocurrency gained 300 million investments worldwide including companies and individual users. So it implies the crypto economy is getting recognition every year.

Interestingly, there are 6000+ cryptocurrencies in the world, but approximately 20 cryptos are ruling the market. In contrast, many people resist investing in it.

Indeed, the crypto market consists of risk and constant price fluctuation, but the investment can be initiated with stablecoins like Dai as that is how crypto currencies have become the need of the hour for any minimal or big investments.

What is Stablecoin?

Before jumping to Dai crypto, you need to understand Stablecoin. It is an essential subset of cryptocurrency which is different from other crypto coins. And the benefits associated with stablecoins are all we beginners want in an investment. 

We know how other cryptocurrency prices are changing in a single minute, but Stablecoins pegged their value to another asset to minimize market volatility. As a result, there are numerous options in stablecoins, and Dai is one of the safest and less risk-associated cryptocurrencies. 

What is DAI Crypto?

Dai is a decentralized stablecoin cryptocurrency launched in 2017 on the Ethereum network with a 1:1 value ratio related to $1 USD. MakerDAO is a Decentralized Autonomous Organization on the Ethereum blockchain, which regulates and maintains Dai’s price stability. 

Rune Christensen developed MakerDAO intending to impart DeFi features with less market volatility. Therefore, DAI is a collateral-backed cryptocurrency with a stable value linked with the U.S. dollar. 

According to the stats 2021, Dai stablecoin has become one of the top 25 cryptocurrencies within 3 years.

 

Price Prediction in DAI Stablecoin:

Price fluctuations in Dai crypto do not create any volatility, but if you invest in Dai you must check past month price changes. For example, in a recent price report, Dai crypto suddenly increased from 24-30 cents. Although the price in Dai may fluctuate and it is always around $1. 

Thus, investing in Dai stablecoin is considered to be safe and secure, unlike other cryptocurrencies.

Conclusion

Cryptocurrency is now a need of the hour as we can conclude that Dai investment has a lot of benefits in terms of financial purposes like loans, lending money, or international payments. 

Besides, investing in the other cryptocurrency is beneficial for future instant transactions and no taxes and changes.

Among others, DAI crypto gives you decentralized freedom where there are no mediators, paperwork, or waiting processes. Hence you get flexibility and the price stability of the U.S. dollar to boot in DAI investment.

References:

5 Things to Know Before You Buy Dai. The Ascent, The Motley Fool. (2021). Retrieved 12 November 2021, from https://www.fool.com/the-ascent/cryptocurrency/articles/5-things-to-know-before-you-buy-dai/.

 

DAI Price Prediction | Is DAI Coin A Good Investment?. Currency.com. (2021). Retrieved 12 November 2021, from https://currency.com/dai-price-prediction.

 

Global Cryptocurrency Ownership Data 2021 - TripleA. TripleA. Retrieved 12 November 2021, from https://triple-a.io/crypto-ownership/.

 

Julian, J., Hansen, P., Patz, D., & Wachter, V. (2020). Decentralized Finance (DeFi) – A new Fintech Revolution? The Blockchain Trend explained. Bitkom.org. Retrieved 12 November 2021, from https://www.bitkom.org/sites/default/files/2020-07/200729_whitepaper_decentralized-finance.pdf.

 

Number of crypto coins 2013-2021 | Statista. Statista. (2021). Retrieved 12 November 2021, from https://www.statista.com/statistics/863917/number-crypto-coins-tokens/.

 

The Dai Stablecoin System. Makerdao.com. (2017). Retrieved 12 November 2021, from https://makerdao.com/whitepaper/DaiDec17WP.pdf.

 

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