/biz/ - Business & Finance

This will save crypto from never getting adopted by the mainstream market.

Volatility is what prevents consumer adoption.
Merchants cannot properly sell their stuff if in a matter of a day or an hour the price fluctuates a lot as it would force them to recalculate the price of all items they sell, which is simply not convenient nor even possible.
Same case for wages, if the the price drops after receiving the wage, the employees getting paid in coins would loose their purchasing power.

So crypto NEEDS price stability.
Then what about Tether/BitUSD?
They are doing hard pegs backed by entreprise assets. Basically it is centralized and one point of failure, while also being dependent from the USD as it is pegged to it (which is a problem as if the dollar falls it falls). Crypto is in the first place about decentralization so it is no good as it would become like fiat but instead of having govs backing it, it would be private enterprises, so arguably an even worse case.

That's why we must have a decentralized peg that brings stability without compromising decentralization, and from the last news there is only Bitbay developing something like that (called rolling peg or dynamic peg). It is scheduled for Q2 2018. It is gonna be huge.