December 2018
Beginner to intermediate
564 pages
17h 34m
English
Content preview from Blockchain Developer's Guide
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Fixing pegs
Access to fiat currency to pay certain expenses is important—most of a business' ultimate expenses are not going to be based on the price of Bitcoin or Ethereum, but the price of one or both of those currencies in US dollars or euros. Until you can pay for power and food in cryptocurrency, it's quite unlikely that the price of cryptocurrency in US dollars or euros will become irrelevant.
Some have heralded the development of a so-called stablecoin as the solution that would fix this problem. Various mechanisms can be used to ensure buying pressure or selling pressure in an asset, such as the backer buying back tokens when the value is below what was promised. Somewhat more simply, however, a token pegged to a currency issued by ...
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