Why is there a need for a “buoyant” digital currency, and where do stablecoins fall short?

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  4. Why is there a need for a “buoyant” digital currency, and where do stablecoins fall short?

While stablecoins are useful for crypto holders who want to make everyday purchases and rest assured that the value won’t fluctuate drastically, they are not ideal as a store of value. While stablecoins might be able to protect against downside volatility, they are unable to rise in value over time.

Buoyant digital currencies incorporate monetary policy and supply and demand economics to help protect against downside volatility while while also allowing for a rise in value if the demand for it increases.

Inflation: With digital currencies pegged to fiat currencies such as the USD, holders run the risk of inflation each year that depreciates the value of the asset over time. ndau is a superior store of value because its monetary policy can help keep the price stable, with the freedom to rise over time.

Collateral: Thanks to ndau’s buoyancy, ndau is also ideal as a form of collateral that works well over extended periods such as lending and account escrow.

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