By Tobi Loba
Bitcoin has ever been criticized due to its high volatility, deeming it unfit for a day to day transaction, blaming it on the same point, high volatility. This seems to be applicable to other digital currencies such as DigiByte (DGB) and Litecoin (LTC).
In this regard, the creator of DigiByte, Jared Tate recently stressed on the fact that the three coins mentioned above are better as a store of value such as Gold and other precious metals, rather than being centered on transactional purposes like other currencies, which is part of the reason he thinks DGB-backed stablecoin expected to thrive as a transactional currency in 2020 is needed now.
As generally known, Litecoin (LTC) is hard-forked from the first and largest cryptocurrency, Bitcoin. While DigiByte (DGB) was originally built on the code basis of Litecoin, but not forked from Litecoin as most crypto enthusiasts usually envisage.
Jared Tate Hints that DGB-Backed Stablecoin is Underway
Jared Tate, the DigiByte (DGB) creator who recently joined DigiByte to mark the birthday of the cryptographic project has recently shared his thought regarding the best purpose of Bitcoin (BTC), Litecoin (LTC) and the cryptocurrency project he created, DigiByte.
In a series of comments and responses he made on Twitter, Jared stressed on the fact that the three aforementioned digital assets are better off when used as a store of value.
He said, “The irony of Bitcoin DigiByte & Litecoin is while they are mathematically finite many crypto conferences won’t accept them as payment because of volatility. They work much better as a store of value than transactional currencies…”
Jared concluded by hinting that a DigiByte-backed stablecoin is underway, coupled with the reason why it’s needed now. A stablecoin he backed to succeed as a transactional currency in 2020. He said, “…2020 is the year of the decentralized stablecoin.”
The irony of #Bitcoin #DigiByte & #Litecoin is while they are mathematically finite many crypto conferences wont accept them as payment becouse of volatility. They work much better as a store of value than transactional currencies. 2020 is the year of the decentralized stablecoin
— Jared Tate ©️ (@jaredctate) January 12, 2020
Questions and Responses Regarding the Underway Stablecoin
As expected, Jared Tate’s comment was greeted with questions and reactions from his followers that are supposedly DigiByte community members.
Reacting to Jared’s assertion, a Twitter user said, “Just remember everyone DGB is currently very undervalued, so I have big expectations for the future hodlers.”
Jared answered that the stablecoin could be a DigiAsset, “It could be a DigiAsset. But we need to figure a few things out first.”
It could be a DigiAsset. But we need to figure a few things out first.
— Jared Tate ©️ (@jaredctate) January 12, 2020
Another user questioned the necessity of a decentralized stablecoin if it’s backed by fiat currency such as the US dollar that has lost over 90% of its value.
“Why would we need a decentralised “stablecoin” if it is backed by a scam coin like fiat. There is volatility with fiat, dollar has lost more than 90% of its value.”
Digibyte (DGB) creator Jared Tate answered that the underway stablecoin will rather be backed by DigiByte with the value comparable to the dollar.
He said, “Technically it will be backed by DigiByte and is simply a measurement of value similar to the psychological notion of what a “dollar” is. It is a widely held belief after all and currently the majority of the world still transacts in such psychology backed fiat measurement.”
Technically it will be backed by DigiByte and is simply a measurement of value similar to the psychological notion of what a “dollar” is. It is a widely held belief after all and currently the majority of the world still transacts in such psychology backed fiat measurement.
— Jared Tate ©️ (@jaredctate) January 12, 2020