Everything you need to know about crypto Flatcoins
Investing in cryptocurrencies can be incredibly risky due to their volatile nature. But with the introduction of stablecoins, investors have been given a more certain form of investment when it comes to digital assets. But what about Flatcoins? In this article, we’ll explore these newer cryptocurrencies and discuss how they are useful investments despite their lower level of stability compared to more traditional assets like fiat currencies and even the most stablecoins. We will also clarify the definition of flatcoin so you can inform your decision-making process when it comes to investing in cryptocurrency. To know more about crypto, check out the Official site of BITQQQ.
What is Flatcoin?
The first-ever flatcoin, Nuon, is expected to go live in the early months of 2023. Flat Coins are a type of cryptocurrency that’s pegged against the cost of living which emerged due to rising inflation rates impacting the values of other cryptocurrencies. Unlike more established coins such as Bitcoin and Ethereum, these new digital currencies aren’t available in large numbers yet but could gain significant traction shortly after they become readily accessible on a wider scale.
Let’s know about World’s first Flatcoin: Nuon
Nuon is a flatcoin which makes use of a blockchain oracle to operate. Chain Link has been a blockchain oracle for some time and it is a crucial component of many other blockchains. A blockchain can access outside information using an oracle. Nuon demands information concerning purchasing power and inflation rates in this particular instance, which it gets from an unbiased inflation index oracle.
Owners have to make collateral like Ethereum, Bitcoin, Avalanche along with the widely used altcoins Tether and USDCoin to utilize Nuon. This is a loan without any interest attached – once you’ve deposited your chosen asset for collateral, you can mint your own Nuon for personal use! Maintaining its peg requires that Nuon remain over-collateralized at all times. Nuon also happens to be decentralized, which means that its town operates its protocol using a governance procedure. Nuon has also released its governance token, nuMINT, that users can purchase as well as make use of to obtain voting rights.
Inflation and Cryptocurrencies
Inflation is a procedure whereby currencies reduce their buying power because the price of products goes up. Inflation has detrimental effects on cryptocurrencies in addition. As fiat currencies deplete their buying power, cryptos tend to follow, because their value continues to be a bit linked to conventional currencies. Bitcoin could be spent in several establishments nowadays, but overall, it is still relatively unaccepted by worldwide retailers and services. This holds true for those altcoins too. The traditional currency continues to be essential, therefore. What this means is that cryptocurrency prices are intrinsically connected to fiat currencies.
While some cryptocurrencies could be fairly hedged against inflation when they have a small supply, they remain extremely vulnerable to huge price swings. As an example, Bitcoin’s twenty-one million BTC finite restriction impedes oversupply though it hasn’t been extensively adopted as well as continues to be unregulated. Because of its very nature, Bitcoin doesn’t possess a steady price. Up until recently, Bitcoin saw its worth increase or even halve in a few months, which makes it hard to depend on this particular asset to combat inflation.
Can Flatcoin serve as a solution to our problems?
As inflation continues to place stress on our finances, it is obvious that we want anything to help you safeguard us from the rising costs of living. Flat Coins might be of good help to us in this area. It is still the initial stages of the flatcoin sector, therefore it is not sure if this particular type of cryptocurrency is going to be helpful in the just or if the road vanishes into thin air.