Cryptocurrencies are effective payment methods, especially for international remittances. However, their use for daily payments like at shops is impractical because of their high price volatility. You could leave for the shop with a crypto amount to buy some goods, just to find that your digital coins have devalued. In such a case, you will not be able to buy all the goods you planned initially. Of course, the opposite could also happen.
Crypto traders leverage this extreme volatility to make profits. They buy cryptocurrency at a low price and sell it within a short time for a higher price. While this activity can be profitable, it is very risky. But if you do not plan on trading, how can you use cryptocurrencies without the problem of high volatility. The solution is a stable coin. These digital coins have their value pegged to a more stable asset like the US American dollar (USD) or a commodity.
By using a stablecoin, you can keep your money in the crypto sphere without wild price fluctuations. Several stablecoins are available in the market. Two of the most prominent are USD Coin (USDC) and Tether (USDT). Which one is better to use? You can find it out in the following USDC vs USDT comparison. Toward the end of this article, we provide information about the perspectives of Cardano (ADA), one of the most promising cryptocurrencies.
What Is USD Coin (USDC)?
This stablecoin was launched in 2018 by Coinbase in partnership with Circle Internal Financial. Initially, USDC was created as an ERC-20 token running on the Ethereum platform. Nowadays, multiple blockchains like Algorand, Solana, Stellar, and Tron support it too. The USDC’s value is backed by a 1:1 reserve in American dollars. The bank account holding this reserve is constantly audited to ensure there are no more USDC tokens than USD stored in the account.
What Is Tether (USDT)?
Tether has the honor of being the first stablecoin available. Since its launch in 2014 by Bitfinex, Tether has led the stablecoin market. Not long ago, some people questioned the worthiness of USDT. They argued that a USD reserve did not properly back USDT. However, the company made its attestation report available, dissipating all doubts about its lack of backing.
Besides being 100% backed by a USD reserve, Tether offers speedy transactions at very low fees. It also benefits from high liquidity, making it ideal for traders who need to access their stablecoin holdings immediately.
Which Stablecoin Is Better?
Before we discuss the projections for Cardano 2030, let us discuss which of the two stablecoins described are better. Both stablecoins are adequately backed by USD reserves. USDT has an advantage with its higher liquidity and lower fees. But if you are not planning on trading, using USDC or USDT is a matter of personal preference.
The Future of Cardano (ADA)
If you want to speculate using cryptocurrencies, you should select good digital coins. It means you should invest in cryptocurrencies that can increase their value in the future. One of the most promising digital coins is ADA, which is the cryptocurrency of the Cardano project. Cardano has developed a third-generation blockchain by incorporating lessons learned from previous blockchains. The result is a more secure and stable blockchain.
The ADA coin reached its maximum value of $3.10 on September 2, 2021. As of the last week of March 2022, ADA sells at approximately $1.10. ADA can be an excellent long-term investment. Analysts think the ADA price will not be less than $93 in 2030. By the end of that year, it could reach $111.