What is Fiat Currency? Important factors about fiat money

Fiat currency calculator

You have heard a lot about cryptocurrency but never thought about the opposite, fiat currency system, in which you are living right now? No doubt cryptocurrency is the next big thing in the business world, but it still has a long way to compete with fiat currency. 

In particular, it isn’t just about using some bucks to buy goods and services. It has several other factors that you should know, its advantages, disadvantages, and what makes it the most vital system. As a matter of fact, this article is all about the information that you need. Our expert analysts have done their research and came out with some pieces of useful information and examples that shall help you in your future to understand how the system of fiat money practically works.

One dollar bill

Table of contents

  • What does fiat mean?
  • What is fiat currency?
  • History of fiat currency.
  • Examples of fiat currency
  • How does fiat currency work?
  • Benefits and drawbacks of the fiat currency system
  • Fiat money vs. Commodity money (the gold standard)
  • Fiat currency vs. cryptocurrency
  • What is the future of fiat currency?
  • Conclusion

What does fiat mean?

To give you a better understanding of fiat currency, we have to explain what does the word “fiat” means. Surprisingly, the word fiat comes from Latin, which means “let it be done” or “it shall be.”  However, in some pieces of literature, fiat is also termed as “fiduciary,” which means “involving trust.” fiat currency goes by several other names such as fiat monetary system, fiduciary money, and simply, fiat money or fiat currency.

What is fiat currency?

Basically: The paper money we all know – like Dollar, Euro, Yuan, Rupia

Now, the big question arises, what is actually a fiat currency? Well, it is the money that the government issues, and it isn’t backed by any reserves, such as gold or silver. Instead, this currency is pegged with the trust of the government, and its value is derived from the connection between supply and demand.

In other words, you can consider fiat money as a legal tender that has a value issued by the government, and most countries around the world use this legal tender as their primary mode of payment to buy goods and services.

Furthermore, the stability of the fiat money comes from the issuing government. On the other hand, we have commodity money that changes its value according to the reserves, which are backing it up. In further sections, we shall relate both of them in detail.

Euro currency notes.

History of fiat currency

The fiat monetary system didn’t start right away; there were a series of events that lead our lives to revolve around this system. Undoubtedly, we have seen this system for a long time, but its story is quite fabulous. However, China was the first country to neglect the gold standard and use their specific paper money as a medium to buy goods. 

Firstly, these paper currency was only exchangeable with gold, silver, and silk, but later in the era of Kublai Khan, a well-defined fiat currency system that came in the 13th century was presented. As a matter of fact, historians believe that this currency was the root cause of the Mongol Empire’s downfall due to excessive spending that leads to hyperinflation.

After China, the fiduciary system made its way towards Europe in the 17th century. Later on, it spread through Spain, Sweden, and the Netherlands. Unfortunately, the fiat currency system was a failure in Sweden, and they ultimately switched to the Silver standard.

Similarly, New France in Canada, the American Colonies, and then the U.S. Government also tried to use the fiat money, but overall ended with some mixed results. Furthermore, in the 20th century, the U.S. government was back to commodity-based currency on a limited basis.

However, in President Nixon’s era in 1972, the U.S. neglected the gold standard once and for all. This was the end of commodity money internationally, and the fiat currency system was accepted all over the globe.

Examples of fiat currency

If you are wondering about fiat currency’s life examples for a better understanding, don’t worry, we are here to help you out. Every physical currency that a government issues and uses as a mode of payment are a fiat currency. For instance, the dollar, pound sterling, Euro are some common examples of fiat money.

Coins stacked over dollar bills

How does fiat currency work?

The proceedings of fiat currency are quite peculiar in nature. Generally, the modes of transactions are backed up by some commodity that maintains the value. Still, in fiat money, the value of the currency increases by the trust of the users and issuing governments

This paper money enables us to buy the goods and services without exchanging them with other products as in the case of the barter system. Additionally, the purchasing ability of this paper currency provides an edge to expand the business without compromising on the previous equipment.

Therefore, it became an international model of payment, but it doesn’t end here. The value of the fiat currency depends on the demand for the money in the region. Such as how well the government is performing. In case a country experiences political instability, it is more likely to have a fragile currency and inflated prices. Thus, making it harder for people to buy the necessities.

In order to get better performance from the fiat monetary system, the people should believe in their country’s currency as a better medium of payment, along with the governments backing up their money by making it the lawful tender for transactions.

Several coins stacked

Benefits and drawbacks of the fiat currency system

There is no doubt that the fiat monetary system is an internationally accepted system with certain benefits, but there are some major drawbacks. Do you want to know the disadvantage of this system? Don’t worry; the next section is about the pros and cons of the fiduciary currency system.


The Fiat currency system has several benefits for a country’s economy. With that said, some factors support this system, such as Scarcity, which maintains the value of everything.

To understand it better, consider any currency pegged with some commodity — its price would be depending upon the commodities backing it up. This gives lesser control to the government, and the value of the currency might not meet the demands.

While in the case of paper money, the Central bank of the country has direct control over the printing of fresh currency. This way, the government can control the currency notes they want to revolve in the system depending upon the economy. In case of inflation, they can always pull out the currency and store it in a vault.

Furthermore, the country will be free to look for more commodities to put in the system. This means that governments can individually manage the liquidity, interest rates, and credit supply of a currency with much more stability

For instance, the U.S. prevented their financial system and global economy from the Global financial crisis in 2008-2009 only by controlling the Federal Reserves.


Although there are several benefits of the fiat monetary system, it would be wrong not to enlighten you with the disadvantages of this system. So, here are some of the cons of the fiat currency system.

If a country isn’t performing well economically or with undisciplined governments, the fiat currency system can backfire. For instance, some unlawful authorities mint a load of currency to circulate in the country. What do you think would be the outcome? Definitely, the country has to face inflation.

If things get pretty much out of hand, the outcome might be even more devastating, such as hyperinflation. Unfortunately, this happened with Germany after World War I and recently with Zimbabwe and Bolivia.

Dollar bills lying on each other

Fiat money vs. Commodity money (the gold standard)

In order to relate fiat money with commodity money, you have to understand what commodity money means. Actually, it is a system in which any precious metals (mostly gold, hence called gold standard) or valuable commodities are used as a medium of payment.

Now, this system limits the government to print the bills to the amount of the commodity they have in reserve. In fact, all the currency bills are backed by the government’s commodity. In such a system, the government can only print further money if they get to hold more valuables.

Clearly, this means that government isn’t authoritative to print, and the currency is only based on the country’s economic factors. While on the other side of the coin, countries and their central banks have full-fledged control over paper money and use the tools to impact their currency value.

Some people consider the commodity system a plus for their currency’s stability because a physical and existing substance backs it. However, the people who advocate the fiat currency system believe that commodities prices would remain nothing but stable.

In addition to the context, the worth of a currency in the fiat monetary system and the commodity-based system can fluctuate. Still, the good part of fiat currency is that it can give some time to the government to plan in case of an economic emergency.

Gold bars

Fiat currency vs. cryptocurrency

Fiat currency and cryptocurrency are slightly on the same page here, as no commodity back them both, and that’s the only similarity they have. In general, fiat currencies are controlled by the governments and central banks, while no one controls cryptocurrencies. Instead, they are decentralized and work on their own ledger called a blockchain.

Another notable difference comes in the minting of fresh bills. Although cryptocurrencies don’t have a physical state, they are still much limited and short in supply. At the same time, fiat currency is printed by the governments depending upon the needs and economic situation.

Furthermore, the transactions through cryptocurrency are permanent, and the nature of their dispersed ledger (Blockchain) makes it really hard to track them. On the other hand, fiat currency payments are reversible, and authorities can track them with ease.
However, the cryptocurrency market is still immature and requires some time to develop.

Therefore, due to the small number of people in the crypto circle, the volatility is pretty much high. To make cryptocurrency stable, the companies are shifting towards stablecoins, which would decrease the volatility and might change cryptocurrency as an international medium of exchange.

Bitcoin over other coins.

What is the future of fiat currency?

Without a doubt, the question about the future of fiat currency isn’t definite. It is something that only time can unfold, but all the competitors of this system, such as commodity-based systems and cryptocurrencies, have their drawbacks.

Apart from drawbacks, the system of cryptocurrency isn’t robust. It has several challenges to overcome still, and there are pretty interesting things developing on a day-to-day basis. Even if fiat money is accepted worldwide, there is a history that proves the vulnerability of fiat currency

This is the main reason for establishing the bitcoin on the first. The cryptocurrency was never meant to change the transaction system we have. Instead, it was only invented as an alternative to an economic network. Apart from this, we can’t neglect the fact that it has the ability to switch the global mode of payments.


In the end, we hope this article has answered all your queries. You have all the vital information that you need to know about fiat currencies. You won’t be left out of the conversations about the money that we use daily in the future. Further, it’s beneficial to understand the transactions practically in your life.

Several coins on the ground..

By going through our vs. sections, you know the other systems that exist along with the fiat currency system. Let us know in the comments which currency system you think is the best and why is it?

Most of the Known Diem Scam Sites | Protect yourself.

Scammers phining for your money

Diem scams are getting a lot of attention as the Diem is just around the corner to launch, some organizations and scammers are looking to rip off your money and put it straight into their pockets without giving you anything but a Scam. Undoubtedly, it doesn’t sound good at all but trust us, we don’t want you to fall into a trap.

Although these companies and associations are spreading through their marketing strategies to capture investors through their foolish offers. Therefore, we are here to help you out and protect you from any phishing. Here is a list of the most famous Facebook Diem scam websites that you should avoid.

Some known Scam-Sites:

  • Americanas-pix.com
  • Buylibracoins.com
  • Diemassociations.com
  • Diemcoinproject.com
  • Diemexchang.xyz
  • Diemexchange.xyz
  • Diemfacebook-diem.com
  • Diemfuture.io
  • Diemglobal.pro
  • Diemglobal.to
  • Diem-global.com
  • Diemglobalpro.com
  • Diemlaunch.global
  • Diemlibre.io
  • Diemspot.io
  • Diemtoken.cloud
  • Diemue.net
  • Diemvip.site
  • Diemvip.net
  • Diemwallet.sale
  • Diemwallet.world
  • Diemword.vip
  • Diemworld.vip
  • Facebook-diem.net
  • Fbdiem.org
  • Fbdiem.io
  • Facebookdiem.vip
  • Hotaex.net
  • Libracash.global
  • Libra-ico.org
  • Libranovi.io
  • Libra-vps.com
  • Projectdiem.io
  • Thediemtoken.com
  • Uplibra.io
  • Wallet.diemglobal.to
  • Zuckbucks.cash

And all accounding Subdomains like

  • diem.facebook-diem.cc
  • secure.diemwallet.sale
  • secure. …
  • diem. …
  • wallet. …

Some of those are doing a “kinda” legit business by providing other coins, but they are named in a way that people are confused and think they are the official Facebook Diem coin, which they are not.

Simple Rule: If the URL is NOT

  • Diem.com (ex Libra.org)
  • Novi.com (ex Calibra.com) or
  • Facebook.com

    and they want to take money from you
    => it’s a scam.

A thief trying to get your diem.

If you are having trouble with these sites and need further information on Diem, please sign up for our newsletter here:

With this article’s help, we hope you will not get into any problem; to buy Diem, we would like you to know some general rules and regulations. However, don’t trust anyone other than Diem.com (ex Libra.org), Novi.com (ex Calibra.com), Facebook.com, and last but not least, the Diem-central.

Centralized and Decentralized exchanges | which is better?

Stocks rising up and down in an exchange market.

As cryptocurrency is getting popular day-by-day, people show a fair amount of interest in them. However, the discussion always rounds about Centralized and Decentralized cryptocurrency exchanges

So, hold on to that thought; we have decided to address the elephant in the room. Therefore, if you have any queries left about the difference between centralized and decentralized cryptocurrencies? Or which is better? And which crypto exchange should you choose? This is the article that you need.

With that said, we shall begin with an overview of the topics that are supposed to discuss in this article.

  • What is a cryptocurrency?
  • What is a cryptocurrency exchange?
  • Types of cryptocurrency exchange.
  • What does centralization mean, and how centralized exchange works?
  • What does decentralization mean, and how decentralized exchange (DEx) works?
  • Centralized and Decentralized cryptocurrency exchanges: The significant differences.
  • Future of Centralized and Decentralized exchanges.
  • Conclusion.
Stocks going up and down with time

What is a cryptocurrency?

Before we go further, you should know the general idea of cryptocurrency. Supposedly, cryptocurrency is a kind of payment medium that you exchange in terms of services and goods. Similar to the concept of real money, right? But how is it different? 

The only thing that differentiates it from real money is that it requires an online ledger that secures the online payments. Now, most companies are working with their cryptocurrencies. You can consider them as chips from casinos

Subsequently, you have to convert them in exchange for real money to access the products or services you need. Furthermore, the ledger technology on which these cryptocurrencies work is called a blockchain. This ledger protects the value of the real assets that are safe at your end.

What is a cryptocurrency exchange?

To understand the differences between centralized and decentralized cryptocurrency exchanges, you must know what a cryptocurrency exchange is? In simple terms, these are the places where you can buy or sell cryptocurrencies. 
With that said, there are some unique regulatory rules for every exchange that you should consider. But generally, all of these provide you access to almost every cryptocurrency.

Types of cryptocurrency exchange.

Besides the earlier context, there are 2 types of cryptocurrency exchanges in the market.

Here are the two types of cryptocurrency exchanges.

  1. Centralized cryptocurrency exchange 
  2. Decentralized cryptocurrency exchange (DEx)

We shall discuss each of the types in detail in the next sections of this article.

Rising arrow

What does centralization mean, and how centralized exchange works?

In order to understand the word centralization, we would like you to have real-life examples that you use every day. There are some systems that you use daily. It doesn’t matter if it’s your social media, your bank, your cab service account, or merely a streaming service, more practically anything you can access on the internet. 

Obviously, all of these are controlled by a centralized authority, but what does that mean? Clearly, it means that to transfer your data from one source to another, you have to use a third party as an intermediary on your behalf.

For further explanation, we have to quote the example of Yahoo, which also uses centralized servers. After you hit the button by giving them details; and send it further, your data is part of their centralized servers now.

Suppose you add your friend on Yahoo and send some of your work documents in an email. Before you do that, you have to access your Yahoo account with your data such as name, image, nationality, and date of birth.

It should be noted that when you access Yahoo, you trust them that they aren’t going to expose your data for their benefits. Instead, they will keep your data private and keep it exclusive. However, that isn’t always the case. As a matter of fact, Yahoo was once hacked in 2014 by a group of people who were able to steal millions of accounts and their data.

In particular, how do you think these people could gain access to all the data by hacking only one medium? The answer is pretty simple since Yahoo uses centralized servers, and if hackers were able to get into the center, they could get into the whole picture.

Stacks of bitcoins.

What does decentralization mean, and how decentralized exchange (DEx) works?

As the name indicates itself, it is entirely against the idea of centralization. Firstly, you will be surprised to know that decentralization was possible because of blockchain technology. The first-ever was the Bitcoin blockchain established in 2009 by Satoshi Nakamoto, whose real identity is still unknown

Further, if you want to send some amounts in a decentralized exchange, the central authority has nothing to do with them. Instead, anyone who wants to be part of the system can connect their device and verify the payments.

Additionally, each device connected in the system is referred to as a “node,” There are hundreds to thousands of nodes operating in a network.

Certainly, this means that if someone attempts to hack the system, he will only be able to hack a single node — while the rest of the nodes keep the blockchain intact without losing any data.

However, the vital thing to remember here is that decentralization is not limited to transactions only. You will be amazed to know that how many vast applications are present nowadays.

Secondly, there is no need for people to show their identities over the internet. You have the edge of logging in and interact in a decentralized system with the aid of private and public keys.

The third thing to keep in mind is that blockchain is neither in the control of any single authority nor by any government in a decentralized system. Instead, the power is fairly divided among the people who want to be part of this system.

With these points in mind, you can understand how it affects society in a better way. It takes control from significant companies and associations and divides them among the ordinary people.

Binary codes running in vertical directions.

Centralized and Decentralized cryptocurrency exchanges: The significant differences.

In this next section, we will discuss some major factors through which centralized and decentralized cryptocurrency exchanges are differentiated. Moreover, these factors are some pros and cons of one exchange over the other. Sounds interesting, right?


As you have learned earlier, authority is one of the primary differences between centralized and decentralized cryptocurrency exchanges. However, in the case of a centralized crypto exchange, most of the power belongs to a third party through which you have to proceed further.

On the other hand, we have a decentralized crypto exchange that provides the most control to the user. You are not bound by any third party to proceed on your behalf, which means that your data remains secure at your end.

Since decentralized exchanges provide more authority to their users, they are becoming more and more popular. However, it is also causing the complexity of a platform.

Government support

Government support is one of the factors that you should have in consideration. In the case of a centralized exchange, the government has the higher authority over each individual using that system, so the government supports it. 

Secondly, governments can identify the individuals only in a centralized exchange. In contrast, a decentralized business keeps your identity hideous, which is the main reason the governments don’t support such decentralized exchange.


As we have discussed the decentralized cryptocurrency exchange and how it works, you will be pretty sure that it is impossible to hack the whole system. Indeed, this means that a decentralized exchange provides far better protection than a centralized exchange

If we look in the past, there are many incidents of hacking transactions in a centralized exchange. Although they have developed their systems to offer more security, they can never relate to the safety of the decentralized exchange

In trading cryptocurrency, there is a significant risk of hackers, but with decentralized systems, that threat comes to an end for good. As a matter of fact, some centralized exchanges offer decentralized accounts to their customers; to keep the users free from any risk of losing transactions.

wood crafted miniature house with stacks of coins.


Regulation is one of the essential factors that you should know before choosing the boss here. In the case of centralized crypto exchanges, they are pretty easy to operate. However, they require licenses to process transactions and follow the rules of the regulatory authorities operational in that specific zone.

On the other hand, if we look forward to decentralized exchanges, they don’t need any licenses to operate, but they have different challenges to overcome as well. Thanks to the blockchain technology that is dispersed in the local regions.

Therefore, even if regulatory authorities prohibit decentralized exchange in a particular region, it can still be operational.

Time required

Time is a valuable asset, and it isn’t the same for both exchanges. Do you want to know how? Of course, you do. Well, decentralized platforms are more likely to consume more time than centralized systems
Along with that, you can have an idea that how much time it requires for transactions through blockchain technology (which is decentralized) by a report. According to the report, a decentralized crypto exchange required about 15 seconds to complete a transaction, which is considerably more time than 10 seconds of a centralized cryptocurrency exchange.


In the present time, we have to say that centralized crypto exchanges are much more famous than decentralized cryptocurrency exchanges. Additionally, these exchanges provide good benefits of having a definitive infrastructure and reliable liquidity, but they came much earlier than decentralized crypto exchange.
However, decentralized cryptocurrencies offer some distinctive benefits to their customers, so they are becoming quite famous. Moreover, several companies are launching their decentralized cryptocurrency exchanges (DExes) in the market, for instance, Binance’s DEx.


Centralized crypto exchanges are expensive than decentralized ones. The main reason is that centralized exchanges have to charge their customers directly. However, the charges that consumers have to pay are mainly on the services they obtain from the exchange.

On the other hand, if you look towards decentralized crypto exchange, they charge 0 to very fewer prices on transactions through their blockchain, which is a plus for most consumers.


If you want to know which exchange offers more features, the answer would probably be centralized cryptocurrency exchanges. If you are a centralized exchange user, you will see that you can access multiple tools, such as margin trading, portfolio management, and other tools for a better trade.

On the other side of the coin, we have decentralized cryptocurrency exchanges that don’t offer such tools to their users. For instance, you get a limit on orders and no offer margin trading. However, we hope that when more platforms join the market, they might provide better facilities.

Tools and features that you can get remotely with the help of IT.


Liquidity is the ability to transform your valuable assets into readily available cash. As a matter of fact, a centralized cryptocurrency exchange offers you good liquidity over a decentralized exchange

Do you wonder, why is that? The primary reason is that most people in that market are more likely to invest in similar trends. So an asset has a higher demand than other ones, several sellers would sell it accordingly. Furthermore, there are market makers who add liquidity in a centralized exchange.

On the other half, it will be surprising that decentralized exchanges don’t offer liquidity as much as centralized systems provide. The primary reason behind this is that order matching requires more time in DEx than centralized systems. Other possibilities can be due to low popularity.

Future of Centralized and Decentralized exchanges.

So you have gone through the whole article, you are much familiar with how centralized and decentralized cryptocurrency exchanges work. There are some particular benefits of decentralization, but the question to answer is that in the future, who is going to rule?

Decentralization ultimately means to take power from authorities or corporations and divide it among the consumers, which will make lives much more manageable, quicker, fairer, cheaper, transparent, and best of all? Anonymous from the world

But here is the catch, the companies and authorities that have the power and money in the centralization system aren’t going to support decentralization at all. Rather they’ll fight back and try their best to prevent decentralization at any cost. Definitely, they don’t want to lose authority or money.

However, in our vision, as the world is progressing, decentralization will become more popular after ten years, with the majority of the companies running on decentralized systems. This will not only make the system stronger but beneficial for the consumers.

Moreover, this is our perspective. The truth can unfold with time alone. If you think decentralization isn’t beneficial or the future beholds something else, don’t forget to comment down and let us know.

Trades rising above.


And here, this gives us an end to centralized vs. decentralized cryptocurrency exchange. After reading the whole article, we are sure that you know how this exchange works practically and which is beneficial for you.

To be honest, centralized and decentralized systems have their pros and cons. It depends all on your requirements. Although decentralization is still in its early stages, it still has to grow further, and it provides plenty of features that can solve people’s modern financial problems.

Diem | Diem vs. Bitcoin | Diem bitcoin difference

Libra and other cryptocurrencies lying on table

One of the most asked questions among crypto enthusiasts; Diem, a famous stablecoin owned by Facebook that has psychologically targeted people’s minds, and Bitcoin, which is the most famous and traded cryptocurrency so far, what is the Diem Bitcoin difference?

We get that a lot, which is why we have decided to give a piece of brief information. If you are also looking forward to knowing all about Diem vs. Bitcoin, you are in for a treat. Additionally, Diem and Bitcoin aren’t on the same page here. However, to decide a boss from one of them you should learn about them individually first.

  • What is the Diem Bitcoin difference?
  • Is Diem also a cryptocurrency?
  • What is Diem Association, and how does it work? 
  • What was the need for Diem?
  • Why they had to change the name of Libra?
  • How can we use the Diem?
  • How is Diem different from other cryptocurrencies in the market?
  • Can Diem succeed in the market?
  • Are there any risks of using Diem?
  • Can Diem takeover the Bitcoin?
ethereum litecoin ripple and bitcoin lying on table

What is the Diem Bitcoin difference?

Diem is not at all like Bitcoin; rather, it is a stablecoin, which is more similar to Tether and other cryptocurrencies pegged with some collaterals. Although Bitcoin has its blockchain, Diem runs over its own Diem blockchain, and the wallet is called Novi (formerly called Calibra)

In the vision of Facebook, Diem will be used for payments. Nonetheless, the Diem blockchain is different from the Bitcoin blockchain; it is programmable, so developers around in the market can make applications; it sounds much like Ethereum, right?

Also, the Diem blockchain has other ways around; the Diem association’s validator nodes give them strength. Similarly, these nodes will confirm the transactions and verify the blocks. Thus, users will have reasonable control over their work and benefit from efficient results.

On the other hand, we have Bitcoin. Bitcoin is not a stablecoin like Diem or pegged to any national currencies. This means that Bitcoin is a decentralized cryptocurrency, and there is no mediator, no banks, or any other sources. This is the main reason sellers and buyers were interested in this cryptocurrency on an international scale.

Suppose you can pay international sellers anonymously without any questions asked or without getting into government policies for your business, sounds about right! But the major hype of Bitcoin was getting wealthy just by trading this cryptocurrency. Surprisingly, when prices boomed into the sky in 2017.

In spite of the reason for Bitcoin, its trading isn’t neglectable. You will be surprised to know that one coin’s average price has reached about 40,000 US dollars in January 2021. For such fluctuations, people are more eager to trade with Bitcoin, but there are risks.

gentleman holding a bitcoin

Is Diem also a cryptocurrency?

People are still in bemuse when they think over Diem. Surprisingly, Diem (formerly Libra) was meant to be a simple cryptocurrency, but now it isn’t. Hence, the word “Stablecoin” is more appropriate for Diem.

A stablecoin is a type of cryptocurrency pegged to some national currency or some valuable asset, such as gold and platinum. Currently, Diem pegged with the US dollar, which subsequently means that one Diem’s price is equal to that of one US dollar.

Still, confused? In other words, we can say that Diem is a stablecoin, which is not going to fluctuate its prices as Bitcoin does. However, it is pegged to some reserves, that in the case of Diem, are other cryptocurrencies that are further pegged to national currencies. Now, if these national currencies fluctuate, so would Diem.

But here is the good part, as Bitcoin fluctuates and gives high volatility in prices, Diem won’t. In fact, Diem values would remain stable. For this reason, the Diem Association is ready, who is there to monitor and control Diem Dollar.

What is Diem Association, and how does it work?

In the early phases, Libra was about to form. A group to take care of their crypto project, Facebook made an association called Libra Association to work and manage their digital currency Libra.

Admittedly, the Libra association is no more; as a matter of fact, the Libra association is shifted to another form called Diem Association, and it has to manage the Diem Dollar, the next big thing from Facebook.

The Diem Association has twenty-seven members in total, and they claim to be an independent organization. Now, this can be a way around to make this Diem project away from Facebook, but there are no doubts about who is it at the back end.

However, the headquarters of the Diem Association is situated in Geneva, Switzerland. Therefore, this organization’s members are further several fortune companies, capitalists, and non-profit associations, such as Spotify, Uber, Mercy Corps, Coinbase, and last but not least, Facebook.

Subsequently, this means that the Diem dollar has the potential to change the vision of the business. If such big companies are running at the back end of an association, they have high capabilities.

Crypto coins lying besides gold

What was the need for Diem?

Most people are still wondering that what was the actual need for Diem? To answer these simple questions, Diem isn’t under Facebook in a clear picture. Although Diem works under Diem Association, which is regulated by major tech giants and capitalists, the leading organization is still Facebook.

Clearly, Facebook has its own vision when it comes to digital cash, as the CEO of Facebook Mark Zuckerberg, claims that payments should be as simple as sending photos to each other; Diem is there to make life simpler and easier, which might attract some other users to on their social network.

Along with that, Zuckerberg raised the hat that people using their cryptocurrency would definitely benefit Facebook, and they can advertise on their social network— therefore even more expensively, which is the main cause.

Up to a point, our expert panel believes that Facebook might have other plans in focus relating to cryptocurrency. Clearly, they have invested in their own blockchain, which was originally called Calibra, but later rebranded as Novi in May. Furthermore, it is claimed that the sole purpose of Novi is to “help people around the world giving them better access to affordable financial services.

Why they had to change the name of Libra?

Diem was formerly called Libra, but do you wonder why they had to change the name? Now, the real reason is still untold, but some evidence-based factors show why they had to do so?

Because it was officially announced in June 2019, Libra had to see a number of straggling blocks, such as the major parties that were supposed to be in the Diem association, have walked away. Libra had to face a major pushback from the Senate.

Simon Peters, a crypto-analyst at a multi-asset investment platform eToro, explains: ‘Being known as the “Facebook coin” could be seen as restrictive, and a deterrent due to some issues. Facebook has had over the last 24 months with privacy and data usage.’

Admittedly, it is an attempt to show people that Diem isn’t under any influence of the major social media network Facebook. With that said it this incident reflects that the Diem project has “organizational Independence” as there are some regulatory concerns with Facebook.

However, with Diem Association on board, it is not linked to Facebook anymore, and it has the vision that seemed to threatened traditional government financial systems. As Bloomberg reports, the Diem Association is managing this project. Moreover, their currency will be known as the Diem dollar.

A gray Bitcoin

How can we use the Diem?

Diem dollar can be a game-changer, according to the Diem association. With that said, previously, people had to make their purchases, and in return, they had to wait for their transactions to proceed, but with the digital currency onboard, this isn’t the case anymore. You don’t have to wait for the transactions, the minimum limit, the maximum limit, and the list goes on.

The bad part of this story is that it’s only possible for transactions that aren’t in bank accounts, such as cryptocurrency but wait, it gets better; according to Diem Association, it costs about seven cents to send the money internationally. The even better part of this story is that you don’t have to wait for weeks. The average time needed for a complete transaction is about three to five working days.

However, for this purpose, the Diem association has its own tools. If users aren’t on Facebook, Messenger, or WhatsApp, they can still connect through their wallet Novi. But here is the catch, Novi is still under the procedure and not officially available; we aren’t sure what fees would apply.

According to Novi’s website, it is still pretty much clear that no matter what people are keeping in or taking out of the wallet, there are no hidden charges, and Novi is cutting fees to help people keep more money in their wallets.

What is the Diem Bitcoin difference from other cryptocurrencies?

As Diem is gaining fame in the market prior to its official launch, people are more confused about how Diem is different from Bitcoin and other cryptocurrencies? For this purpose, we have to study how Diem is not different from other cryptocurrencies first.

First of all, Diem is going to be entirely digital cash, and you will not be getting any physical note, coin, or wallet to keep it. Sounds similar to other cryptocurrencies, right? Secondly, Diem would also be operated through its Blockchain, a software ledger, similar to that of Bitcoin.

Now, things get a little tricky; Diem isn’t going to be a decentralized cryptocurrency. Instead, it would be pegged to real-life assets that would keep it stable. Hence, stablecoin is the right term to use for Diem. Originally the idea behind the Diem was to peg it with a basket of assets, but unfortunately, the Diem association couldn’t carry that further.

However, they are planning to peg Diem with a bunch of cryptocurrencies, which will be further backed up by their national currencies. Although Diem is a cryptocurrency, but you won’t see a similar idea in any competitive cryptocurrencies; they aren’t bound to any reserve, which is the reason for their high price fluctuations.

Bitcoin shines among different cryptocurrencies and stable coins

Can Diem succeed in the market?

Can the Diem dollar really prove to be a revolution in the trading industry? Well, according to the vision that Diem Association beholds, the answer is yes, it can. The parent company standing behind the Diem association is not other than Facebook; as a matter of fact, Facebook has 2.7 billion monthly active users worldwide.

With that said, Diem can be accessible by those users, and they can quickly use Diem to pay for things they need. Surprisingly, if we put facts and figures on the table, chances are pretty good that after Diem’s launch, the accessibility to financial services might change forever.

As you know, when we have to manage our income, banks charge fees in multiple ways, but what if we get away from purchasing anything without any limitation of banking procedures? Secondly, around 1.7 billion people don’t have bank accounts—this means that around 31 percent of people don’t have banks, and Diem can be a solution to all of them.

If things go as expected by Diem Association, there are pretty high chances that Diem is going to succeed. After all, Facebook, WhatsApp, and Instagram already target a high audience, and Diem would be benefitted from their outreach.

Are there any risks of using Diem?

Although there are several benefits of using Diem, you have to keep in mind that all good things come at a price. Therefore, we must explain some of the risks that you might be facing while working with Diem. 

As we have told you previously, Diem would be working on its blockchain; although blockchain can’t be hacked or manipulated, whereas social media platforms and digital wallets can fall prey to cyber-attacks.

Peters says: ‘Like with any asset or business that uses digital technology, you run the risk of cyberattacks and hacks. If Facebook encountered any attacks on its systems, then potentially, people’s Diem dollars could be at risk.

In short, this means that digital cash isn’t safe, but you should know that same applies to online banking as well. If you consider banking a safe medium, it isn’t as well. If a bank system’s security can compromise, people risk their bank accounts to nill.

Bitcoin Ethereum and Ripple on a hundred dollar note.

Can Diem takeover the Bitcoin?

Well, the final results can only be seen in real-time; until then, we can only assume believing in the facts and figures. Although Diem targets a high population, experts believe that it isn’t a threat to already established cryptocurrencies such as Bitcoin.

However, over one billion Facebook users would definitely change the transactions over digital currency by making fast payments. On the other hand, if you see Bitcoin, the BTC blockchain size has increased to 316 gigabytes, which is a significant value as well.

Furthermore, the Diem isn’t launched yet, but Bitcoin is already the true king; experts believe that if Diem succeeds in the future, Bitcoin will not be affected much. But here is the good part, Diem is pegged to the US dollar; it will have its benefits and shortfalls, but at the end of the day, there are pretty high chances that people would go for the switch.



Dollar investing in stablecoins.

Do you know investing in stablecoin coins can give you financial stability and security all at once? Listen and follow carefully for the best investment tips you will get in 2021 regarding a secure income.

Of course, there has been an explosion of interest, especially with cryptocurrencies. Meanwhile, lots of people do not understand the intricate dynamics of investing with these coins. As a result, they lose loads of cash daily.
This article fixes the problems you face when it comes to investing in stablecoins.

From a technical standpoint

Let us look at this from a technical standpoint. Since you want to invest in cryptocurrencies, here is a question for you.
Do you trade-invest stablecoins? The answer to this question should be negative because you don’t trade-invest these coins. This is because stablecoins themselves cannot offer you high returns. Volatile cryptocurrencies like Bitcoin are where trading investments can be made.

Meanwhile, there is no need to get discouraged because Investing in stablecoins has helped many crypto traders. Finding out its benefits and turning them into opportunities remain the next action.


Furthermore, the popularity of stablecoins seems to be massively increasing. While comparing one of the popular stablecoins, “Tether,” to the most popular cryptocurrency, “Bitcoin,” see what we found. The analysis shows that the largest stablecoin, “Tether,” trades more volumes than Bitcoin. This happens daily, and as I speak, trades are ongoing.

Stablecoin written in red.

The secret behind this success is the major benefits investing in stablecoin offers to traders.

These three points below summarize the benefits.


  • Swift and benefiting transfer mechanism
  • Balanced prices
  • High-interest rates to investors

Now let’s take a careful look at these listed points.

Swift And Benefiting Transfer Mechanism

The growing popularity stablecoins have gained can be attributed to how swift transactions are carried out. Having not only made it a good investment platform, but it also becomes a popular value-transfer system across the crypto ecosystem.

You will find out that in January 2020, six top stablecoins surpassed the Ethereum network in the transfer of values. These stablecoins were(USDC, GUSD, USDT, DAI, PAX).

Investing in stablecoin is beneficial, especially when it is now on record that it has started challenging FX providers. Venmo is a testimony to this fact, as well as many other FX providers. Records have it that the quarterly growth rate of stablecoins was 300% compared to Venmo’s 23% in the 2017 year.

These facts point to the clear truth that stablecoins could replace most traditional payment providers in the nearest future. With the look of events, it will grow beyond a trading tool into a means of payment.



With the cryptocurrency explosion at the tail end of 2017, stablecoins gained a great deal of popularity. Most especially the USD-backed tether stablecoin. As a result, the rate of people investing in stablecoins also increased.

Lots of crypto traders saw this asset as equipment to hedge risky prices. This was during the period when many cryptocurrencies including bitcoin faced wild volatility. The need to invest in stablecoins was now the only way out of the box.

During that period, there was an outstanding growth for most stablecoins, especially Tether. Tether stablecoin also experienced a 130x increase by the end of 2017. comparing with historical gains, Tethers previous $10 million during early 2017 spiked to $1.3bn during year-end.

Seeing the massive explosion, most stablecoins followed the success trend. Among these stablecoins are PAX, TUSD, USDC, and DAI. Other narrowed exchange stablecoins also joined the trail. An example is the Binance USD(BUSD).

One powerful feature of most of these stablecoins is the similar fiat currency backing them up. It has also been observed that the United States of America Dollar is the backbone for lots of these fast advancing stablecoins. This is the secret behind the stability of these coins.

Crypto merchants chose USD mostly because it is universally considered as the reserve currency known to the world. The USD is also required for most international exchanges in the world. This has made most crypto traders express confidence while using tokens backed by the USD as trading cash. In like manner, while investing in stablecoins, it will be nice to consider USD-backed coins for double security.


For individuals who wish to make loads of cash from their stablecoins, platforms are available for such. Some of these platforms are also loan providers who are willing to pay interest for invested capital. Some of these platforms include Nexo and Celsius Networks.

These USD-based stablecoins are accepted and Lent out to borrowers, Just like Banks and most financial institutions do. Borrowers also pay the fixed, predetermined interest rates. This also provides revenue for investors on the platform.

While investing in stablecoins through this means, you are sure of higher interest rates over traditional interest rates local Banks provide. For some platforms, interest rates exceed 6%, while in some cases, it is more. For instance, investing in margin lending funds can fetch over 20% interest rates. These benefits so far come only while investing in stablecoins.


It is important to check out the reviews of platforms before investing. This will help you stay away from scammers and fraudsters.

Do you have questions on this topic?
Go down to the comment section and post for clarifications.

Best Crypto Wallets in 2021

Best Crypto Wallets in 2021. Number 2 and 4 are the ones we use.

The Best crypto wallets in 2021 for exchanging your cryptocurrencies are essential topics you should be aware of. This will enable you to make the best choices as regards crypto wallets with the best security.

Because most of these crypto coins have lasted a long time, many people seem to be interested in them. An example is the Bitcoin cryptocurrency. No matter how volatile this coin becomes, it looks as if the coin never goes away. Presently one bitcoin is worth over a thousand US dollars. This coin, from time to time, still appreciates.

As a result, finding the most suitable wallet to secure these coins is quite necessary. Also, many wallets are available, but not all these wallets are safe to store your digital cash. Therefore, the best crypto wallet in 2021 should be used for transactions. This will guarantee your own security and protection.

Related: Bitcoin versus Facebook DIEM

Along with that, there are lots of issues associated with the possession and safekeeping of crypto coins. One of these issues is hacking. The activities of hackers daily put owning and exchanging cryptos at risk. Individuals have complained about how they lost huge amounts to these malicious hackers. This tells you the importance of choosing the best crypto wallet in 2021.


Generally, all crypto wallets fall under the cold or hot wallet category.
That is to say that all wallets used for storing crypto-currencies are either Hot or Cold crypto wallets.


Cold crypto wallets store cryptocurrencies offline. This is one significant difference between cold and hot crypto wallets. The cold wallets are not attached to the internet.

This “wallet-base” provide a friendly platform for individuals seeking control over their crypto-coins. Digital threats are reduced with this base also. This is because of the offline nature of this category.

The cold wallet only faces physical threats like device damage. Other factors like theft and robbery also affects the cold wallet. Apart from that, the cold wallet is very secure for the safe keeping of crypto currencies.

A number of the best crypto wallets in 2021 are found under this category also. This has made lots of people prefer it to the hot crypto wallets.


Lots of reasons give rise to customer choices. These reasons result from lots of factors and experience.

Hot crypto wallets are online-based crypto wallets. These wallets house cryptocurrencies with internet services. This is the kind of wallets that is rapidly used by lots of crypto investors and traders.

As many analysts have said that it is a better option, the risk factors are so alarming. Crypto hot wallets are prone and more likely to face threats from hackers and fraudsters. The reason for this is because accounts can be accessed from different parts of the internet.

However, does not totally make the crypto hot wallet unable to be used. On record, most crypto traders using online wallets say they are the best crypto wallets in 2021.



Mycelium wallet is a Crypto hot wallet rated as one of the best in 2021. This wallet has proven itself to be beginner-friendly. That is to say, for crypto traders who just started, this wallet is the best one they can opt for.

The Mycelium wallet houses and supports only the bitcoin cryptocurrency. This wallet has a built-in exchange; it is also user-friendly. Please note that this wallet only works on mobile devices.

The wallet also has hardware wallet support, permitting offline storage by users. All these qualities make it get seen as one of the best crypto wallets in 2021.


Exodus crypto wallet is a hot wallet that is free to purchase. This wallet is both mobile and desktop compliant. It is also very simple to use with an in-built exchange.

One outstanding feature of the Exodus wallet is how it provides for the swapping of crypto-coins. Right on the exodus platform, swapping of more than 100 cryptocurrencies is permitted with this wallet.

Also, it is easy for beginners to use, and You must note that the Exodus wallet is a closed-source kind of wallet.


The HitBTC is one crypto wallet that has existed for a long time now. HitBTC wallet allows the depositing of FIAT currencies through wire transfer. The trading fees of hit BTC are relatively low, giving room for low-budget investors. This quality and more permits HitBTC to be among the best crypto wallets in 2021.


The Trezor crypto wallet falls under the cold wallet category. This crypto wallet is otherwise known as the Model. Trezor wallet is the second generation of hardware wallets that have been created. This is one wallet that houses third-party exchanges.

Also, Trezor wallet accepts various cryptocurrencies on its platform. Trezor wallet is purchased with money, and it cost $170.

Moreover, Trezor is friendly and safe for new users as such news has gone wild that it is among the best crypto wallets in 2021.


Coinbase crypto wallet is one wallet where you alone get to monitor your transactions. This also is a wallet that is easy to use. One does not need a coinbase account to qualify using this crypto wallet.

Coinbase, founded in 2012, has been licensed and regulated in over 40 states in the USA. This crypto wallet was previously meant for bitcoin alone. Presently this wallet has diversified to house over 26 cryptocurrencies.

One benefit of trading with coinbase wallet is that it is also beginner-friendly. When you look at the wallet’s reviews, it is believed that it ranks as the best crypto wallet in 2021.

Other crypto wallets that are safe and user friendly are

  • Blockchain wallet
  • BRD wallet
  • Xapo wallet
  • bitcoin wallet
  • Trust wallet
  • Ethereum wallet
  • Binance bitcoin-core
  • Facebook Novi wallet

It is very important for one to understand these wallets before use. If possible, look at the reviews firsthand and know if they fit your desired need. This will enable you to use the best crypto wallet in 2021.

Leave your comments in the comment section for help and clarification.



Stablecoins are quite different from most cryptocurrencies like the popular Bitcoin. Would you like to know about some famous stablecoins out there? The best stablecoins in 2021 are those coins that have survived the waves and tides of the horrendous sea.

See: stablecoin(DIEM) VS BITCOIN.

When you hear stablecoins, there is one major characteristic associated with them. It is how the value is being tied to something different from the normal algorithmic process. The attachment of a reserve is what makes it volatile proof.

So, there are plenty of stablecoins in the market and probably circulating. This post will handle the following 6 best stablecoins in 2021, which you never knew before.


The Paxos Standard Token is short-called PAX. This stable coin was built as an alternative to the Tether crypto. Just like the most stablecoins, the PAX is backed by the US Dollar. This quality also makes it among the best stable coins in 2021 for investment.

Also, the PAX coin is stored in treasuries that operate under the government. This coin is also built to run on the blockchain platform for ethereum. It is one stablecoin that has gained the New York state’s approval, especially the financial department.

However, For the fast-developing crypto space, this has been perceived by many as a huge plus. In-fact the PAX stablecoin is not just one of the most used coins in the market. It is also one of the best stable coins in 2021 and beyond.

At the rate at which this coin is growing, it is soon to become the most popular in a short while.

Lots of individuals have also shown satisfaction concerning PAX being trustworthy. Some even believe that this coin is soon to replace the tether(USDT)


True USD is one stablecoin that has kept the tough fight between itself and Tether(USDT). Surprisingly, this coin has not only competed favorably but seeks to overthrow the USDTcrypto

Additionally, as much as the TUSD is not circulating rapidly, this coin seems more promising regarding transparency. A collaboration with a United States Accounting group seems to be a smart move. This was done to enable close monitoring of assets.

This stablecoin can also serve as a second option for purchasing traditional FIAT. That is to say that individuals outside the US who wish to purchase Dollars can go for this second option. Lots of individuals have also voted this currency as one of the best stablecoins in 2021.


This is also one of the best stablecoins in 2021 circulating presently. USDT also has the backing of the United States Dollar, which also makes it volatile proof.

This stable currency is one of the first stablecoins to have existed. Now over 94% volume of all stablecoin tradings is done with the Tether coin. Traders now prefer Tether, probably because it track-records their investments for them. Most merchants combine this currency with ethereum for utility. Generally, It is felt as a localized dollar.

Why is the tether considered the best stablecoin in 2021? It is because of its ability to be converted to other assets. It does not even need to pass through other cryptocurrencies like bitcoin.

The parent company of this cryptocoin is BitFinex, and this coin asset is not audited. As a result, lots of experts have raised objections, as this act is suspicious. However, nothing has come off it as even lawsuits came to nothing.

The tether is currently rated equal to the Dollar on a 1:1 ratio scale. All this proves that this is one of the best stablecoin in 2021 around the world.

Related: what is stablecoin


The Binance crypto otherwise called BUSD is the brainchild of the Binance exchange company. This coin was set up by a collaboration of companies.

The most popular companies that had hands in this were the Binance Exchange and the Paxos trust company. The PAXOS Company is also the team that set up the earlier mentioned Paxos stablecoin.

This coin is one of the best stablecoin in 2021 powered by ethereum but has the Dollar as its asset. Merchants who trade with this coin have also expressed great satisfaction resulting from received discounts.

The news is now all over the place that benefits and discounts are attached to trading the BUSD.

This currency also helps in the payment of trading fees on the exchange. Probably that is why it is held in US banks that are FDIC insured. Not only is binance the largest exchange globally, but it is also one of the best stablecoins circulating in 2021.

Forgetting, not to mention, the BUSD permits you to earn just by stacking them up. So the longer funds are locked in, the more it increases its value by providing INTERESTS.


The Goldcoin is one of the best Stablecoins backed by Gold assets. This cryptocurrency is backed by the Ethereum blockchain network, while it allows the purchasing and holding of assets. These assets are held form of the cryptocurrency.

You may start to wonder about the essence of buying Goldcoin instead of the traditional Gold asset. The reason why this should be preferred is because of how you need not worry about security. The Goldcoin allows the purchase of Gold in fractional units and still secures it in high-security vaults free of cost.

Should you demand payments in physical Gold Bars that Goldcoin guarantees? The only issue is the rigorous process where you will have to provide identity. This, however, discourages merchants from investing. Aside from this issue, the anonymous purchase of Gold through the Goldcoin is the fastest and safest means.

As a result of these qualities, calling the Goldcoin under the best stable coin in the 2021 group is verified.


The Facebook Diem looks as if it might top the rank of best stablecoins in 2021. Although this stablecoin is not yet in circulation, there is no need for doubt with the preps being made.

This coin was known as the Facebook Libra in 2020 but changed to Diem in 2021. Since the world keeps growing smaller resulting from technological advancements, local currencies might be inefficient in time to come.


In a Global village, there should be a universally accepted currency. A lot of experts predict that cryptocurrency will be the new normal as regards easy exchange.

If the truth should be told, such statements are either true or not far from it.

If you have any questions left, feel free to drop in comments section for quick responses.

What is a stablecoin? | A beginner’s guide to Stablecoins

Do you hear a lot about stablecoins? Or you want to know what a stablecoin is once and for all? Or you just want to know more about this intriguing model of a transaction system. Well, if that is the case, you are in for a treat. 

Cryptocurrencies have various benefits and hold recognition as an ideal system for vendors to keep their money safe and protected. Simultaneously, a stablecoin is a kind of cryptocurrency that’s worth is based on assets it relies on, such as the US dollar or gold.

A gold nuggget and a bitcoin coin

Although these syllables sound quite alien to people as well, they are considered quite volatile investment products. But the best part is that people don’t require any intermediary institution to transfer payments, but their fluctuation can still be a risk.

The sad aspect of cryptocurrency is that people cannot expect their weekly earnings, which is a snag of their story. On the other hand, other currencies are relatively stable comparing to cryptocurrency. But getting back to the earnings part, that is also changing with DeFi. But that is a big topic on its own. let’s stick with stablecoins here:

Stablecoins were also introduced in the market in 2014, which is much stable, and their transfer depends upon the trader’s Altcoins (or alternative cryptocurrencies). Now the real question arises again what exactly a stablecoin is? And how can you use it to earn your valuables? 

Buckle up and stay with us to learn all about cryptocurrency, along with a good piece of overall knowledge that can prove to be useful in your business.

Different types of stablecoin collateral.

The framework of stablecoins requires a stablecoin collateral that keeps it pushing through the thick and thorns. So the value of the stablecoin is based on that collateral. These collaterals below are some examples for your better understanding:

1. Fiat

Fiat is the “normal” currencies. Undoubtedly, fiat is the most common stablecoin collateral that is available. Most centralized stablecoins revolve around fiat (US Dollar, Euro, or a combination), which is why they are more stable than the other pegged collaterals. Still, in some cases, it can be a drawback as well.

2. Some precious metal

Admittedly, precious metals are one of the collaterals that are used rarely, but it is mostly used in proportion to other elements. These precious metals include Gold, Silver, Platinum, and others.

3. Cryptocurrencies.

Last but not least, a collateral for stablecoin can be cryptocurrencies. Now there are a number of cryptocurrencies out there in the market, but the most popular ones are Ether (from Ethereum network collateral) and Bitcoin.

Some most famous stablecoins on the table

Now, there is a number of stablecoins that are revolving in our surroundings; some of them are listed below.

  • Diem
  • Tether
  • Petro (now known as USDP)
  • USD Coin
  • DAI

1. Diem

Diem is one of the most gossiping subjects of this decade. It is formerly called Libra and comes from the most popular social media platform Facebook. The most intriguing thing about Diem is that it is not launched yet, but still, it has the most psychological impact on the crypto communities.

Surprisingly, most powerful governments consider Diem as a competitive threat. This might be because the millions of users that come from Facebook and daughter companies that Facebook owns can give a hard time to even the strongest governments.

According to the experts, there was a basket of currencies that back up Diem. But due to some global regulatory concerns, they are now planning to switch towards multiple cryptocurrencies, and those would be further backed up by national currencies.

However, our master panel believes that the first stablecoin, known as Diem dollar, is launching in 2021. So, if you are an investor and looking forward to Diem, you should be prepared.

2. Tether

If you are looking for a boss of stablecoins, this is the one you need to know about. Tether is the eldest and popular stablecoin from 2014 until now. Tether is famous for being the most valuable stablecoin on the planet by the ratio of market capitals yet.

However, the primary purpose of Tether was to move money between two exchanges and gain the advantage of arbitrage by the price difference in two exchanges. The strong capital moving strategy of this coin allowed the Chinese imposter to transfer millions of dollars to Russia, bypassing all the uncompromising controls in China.

3. Petro

Petro is one of the underrated stablecoins, it is a Venezuelan coin. If you wonder why it is unique, the reason behind this statement is that the government claims that oil reserves and other commodities such as gold, silver, platinum, etc, are backing up the Petro.

Under the table, Petro is an attempt to create a substitute to hyperinflationary Venezuelan Bolivar, which is neither a pass nor a failed endeavor yet. Although the Venezuelan government claims that this coin is manufactured for doctors and young people, some situations prove Petro a mass surveillance tool.

4. USD coin

We had to include USD coin in our list because it doesn’t operate as the other stablecoins do. USD coin is managed by the Circle and Coinbase (two major firms of cryptocurrencies).

The good part of the story is that the USD coin is also pegged to the US dollar as that is Tether, and surprisingly, the USD coin is the second-largest stablecoin by market capitalization in the world.

5. Dai

Dai isn’t like the other stablecoins on board. Instead, it runs on the makerDAO protocol, and it is a stablecoin on the Ethereum blockchain. Also, Dai was created in 2015 and pegged with the US dollar that is further backed up by ether.

Now, you might be confused about Ethereum, well, Ethereum is the token behind the ether (a stablecoin). The major fact that comes with Dai is that it intends to be decentralized. If you didn’t understand that fact, this means that there is no central authority to this Stablecoin.

The drawback that you might have to face is that Ethereum smart contracts encoded rules aren’t modified at all. You have to keep your transactions and tradings in the rule book. However, these smart contracts are underpinning the makerDAO, which can turn tables around.

How are stablecoins regulated?

After all the necessary information, you would be wondering how you can use them, right? The answer is quite easy. Stablecoins are not under the rocks anymore; like most digital assets, you can use stablecoins as a medium of exchange.

However, the major advantage that you can avail yourself of a stablecoin is that they can bring stability when the market is unstable. Most traders or investors can get their hands on the stablecoins through exchange platforms. 
Usually, people can mint fresh stablecoins from the collateral issuers or issuing companies. For instance, US dollars are pegged with tethers, and you can obtain them from your exchange.

Why are stablecoin so famous?

Stablecoins have made their name for themselves; the tether is the most traded cryptocurrency after the bitcoin so far. And you will be surprised to know that it has a trading volume of a shouting $20 billion in 24-hours of trades, which is definitely a fortune and gets eye-catching attention.

Are there any drawbacks of stablecoins?

When there are some major advantages of stablecoins, there are some drawbacks as well. Clearly, these coins have different pain points relative to cryptocurrencies.

According to a crypto publication, you will not be surprised that stablecoins are only as stable as the assets bound to the coin; this means that if your asset is rising, the coin will rise, but if it goes down, so would the stablecoin.

The good part is that dollar doesn’t change that much, but if they do, you can directly see the effect in the stablecoin. Certainly, this means that if the reserves show variations, there is another risk as well.

However, this statement raises many questions, such as do these stablecoins have the collateral they claim to have? This might be the reason why tether has failed to answer the most asked question about their reserves.

Now, here comes the bad part: Many of the stablecoin issuers don’t show any transparency. This shows that it can be risky for people to invest in stablecoins, and most people at heart fear it. On the other hand, if people are aware of their reserves and have the appropriate knowledge, a regulator can freeze their funds.

Furthermore, this is a possibility that the collaterals that are backing up the coins might turn out to be insufficient. This can drastically shake the coin’s value in the market. Do you know cryptocurrencies were made to replace the company that typically trusts the user’s money? So, intermediaries have authority over the money.

In July 2020, Circle claimed that they had frozen $100,000 of USD coins because of law enforcement.

All about stablecoins

Since the beginning of cryptocurrencies, they are not stable, so a new way to keep them stable was introduced. In this method, stablecoins are formed, which keep cryptocurrency stable (usually Fiat as a base is used).

The basic idea behind stablecoins is that people don’t have to worry about instability while processing cryptocurrencies such as bitcoin. To better understand stablecoins, the government-issued currency is fiat, the same money that we give sellers in exchange for valuables.

Furthermore, the fiat works on the stored asset, which can be Dollar, Euro, you name it. On the other hand, cryptocurrency is backed up by the amount held in the banks.

Additionally, this means that one way or other digital stablecoins and world assets are tied together. Apart from this, the more complex form of stablecoin is in the case of a collateralized cryptocurrency.

Surprisingly, the fact that stablecoin issuers use this method to achieve a CDP (collateralized debt position). The best part is that any user can use this method to get some freshly minted stablecoins on board.

Third and foremost, variety isn’t collateralized at all. The sole purpose of these cryptocurrencies is to bring stability to the value of the coin. We know it is a little tricky, but here is the catch; if it goes down, the system will destroy the coins to give rise to the value of stablecoins.

However, this category is not much popular yet, and people still understand the protocols they need to follow to have fruitful results. The most popular stablecoin was used in 2018, which is not a long time since now.

Cryptocurrency trading on the screen.

What is the future of stablecoins?

So, this leaves us to the final verdict, what is the future of stablecoins? After the crypto boom of 2017, the answer to this question isn’t sure. But the possibility of the past events is quite shocking, and the overall crypto era is taking a positive turn.

Several investors are looking forward to investing in stablecoins, which is a much safer way. As you know, 2020 lies in the past now; the stablecoin valume is increased by 94% to hit $11 billion in June.

However, regulators are warming these coins to capture more investors and collaterals to backup the stablecoins. 

Furthermore, the US office of the Currency comptroller has given federal associations, the right to grip the reserves for stablecoin issuers. This means that people would be more eager to invest in stablecoins.

As the renowned players, i.e. Circle and Coinbase, are in the game. The digital dollar’s vision rising in the field that might shift the fiat onto the blockchain is visionary and intriguing.


it depicts the Facebook Diem cryptocurrency


Have you heard of the Facebook-currency Diem? Well, it was previously known as the Facebook-Coin Libra, which is going to launch soon!

Do you wish to know about this stablecoin and how it can improve your life?

Then this article “7 facts about the Facebook Diem” grants you the perfect solution to your curiosity. All you need to do is: sit down and read carefully what we are about to tell you!

During the second quarter of the year 2020, it was on record that Facebook has over 2.7 billion active users making it the biggest worldwide social network. The world population is pegged at around 7.8 billion people, while the youth population is about 1.8 billion.

From this, you can see that apart from the under-aged and very old, almost every human in the world is using the Facebook platform. Many people use it for adverts, some use it for record-keeping, some for communication, many use it for fun, and lots more. As a result, the No. 1 asset, which makes the world go round, “money,” needs to be circulated on this platform.

The Facebook Diem, a stablecoin, fills in the Facebook platform’s money gap, as it will serve as Facebook’s currency.

This means that now you can buy and sell your goods/services irrespective of your current location, country, or local currency. Not just that, processing transactions with this currency works as fast as lightning. The only problem here is that it is not in circulation yet. Nevertheless, there is no need to worry as it will be made available in a short while. (To get information about Diem as soon as it’s ready: Click here)


#1 Facebook Diem is a Digital Currency

Digital currencies are the money that is not tangible — you can’t feel or touch it. Then how can I use it? Well, you can transfer and account for these currencies by using computers and smart devices. For instance, Bitcoin has been in circulation for a long time now.

The truth is that once your money cannot be felt, it becomes a digital currency. So funds sitting in your bank accounts are all digital currencies. Just like your cash in banks, these currencies are cash in your digital wallets, which you can exchange by using smartphones, computers, and even cryptocurrency exchanges. Also, you can make it tangible by withdrawing into physical cash — as you do with the machine.

#2 Diem Is a StableCoin

Stablecoins are cryptocurrencies tied to an asset, making them more dependable and reliable because of their value stability.

Click NOW to know more about stablecoins.

The Facebook Diem is a cryptocurrency tied to the US Dollar, Japanese Yen, and Euro as collateral/security. Just like Bitcoin, this is a cryptocurrency, only that it is tied to an asset.

See: the the difference between the stablecoin and Bitcoin.

#3 Diem Formally Known As Libra

The Diem was previously called Libra in 2020, but with the launch that is to take place any moment from now, this crypto-currency is now referring as the Facebook Diem. This new development was a new proposal by the Facebook company — an American-based social media company.

#4 Facebook Novi Is The Wallet While Diem is the currency

A wallet is provisioned for everyone who purchases the Facebook Diem. This wallet houses the Diem crypto-currency till the wallet-owner decides on an exchange. So you will need to have a Novi wallet before you can buy or sell the Diem-crypto currency.

#5 Facebook Diem Will Be Available Soon

The Facebook Diem is presently not in circulation yet, but from all indications, this currency will soon be made available.

#6 Diem Crypto-currency Is Not Decentralized

This crypto-currency consists of the following currency percentage denomination;
7% of Singapore Dollar
14% to Japanese Yen
18% to Euro
11% for the pounds sterling
50% for the US Dollar
This means that, unlike Bitcoin, this currency has a strong security backup. Well, this was the previous plan, but as it stands, preference is towards the pegging of each stablecoin to an individual’s currency.

#7 The Former Libra Association Has Now Birthed Diem Association

The previous body “Libra Association” has now given way to the new Diem Association resulting from the name change of this project’

Expect the Facebook Diem anytime from now.

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