2024

Cryptocurrency

Bitcoin

<a href="https://www.cryptopolitan.com/cryptocurrency-crime-decreases-challenging/">Cryptocurrency</a> investment firm CoinShares predicts that 2024 will be a pivotal year for Bitcoin in the stablecoin arena. According to their analysts, a Bitcoin-based stablecoin project could emerge this year, rivaling the industry’s speed and cost of other stablecoins. 
In a recent outlook report published on January 22, CoinShares analysts have expressed their belief that 2024 holds significant promise for the emergence of a Bitcoin-based stablecoin project.&nbsp; 
The report, authored by CoinShares’ head of Bitcoin research, Christopher Bendiksen, and analyst Matthew Kimmel, suggests that a Bitcoin-focused stablecoin could potentially compete with modern stablecoins regarding speed and cost. 
<h2 class="wp-block-heading" id="a-bitcoin-based-stablecoin-on-the-horizon">A Bitcoin-based stablecoin on the horizon</h2> 
CoinShares anticipates that a Bitcoin-based stablecoin project, designed to rival existing alternatives, will become easily accessible to users in 2024.&nbsp; 
While Bitcoin-based stablecoins have been introduced before, this new project is expected to address some of the technical challenges faced by previous attempts, making it more user-friendly and competitive. 
One key argument in favor of Bitcoin serving as the foundation for a stablecoin is the robustness of its infrastructure. According to Bendiksen and Kimmel, the Bitcoin blockchain offers several advantages, including the longest history, greatest stability, minimal technical debt, and strong assurances.&nbsp; 
These attributes make it a reliable platform for developing stablecoins, potentially providing a secure foundation for the digital currency. 
<h2 class="wp-block-heading" id="the-potential-impact-on-bitcoin">The potential impact on Bitcoin</h2> 
Introducing a successful Bitcoin-based stablecoin could have far-reaching consequences for the broader cryptocurrency ecosystem. Businesses and <a href="https://www.cryptopolitan.com/eco-friendly-bitcoin-mining-gains-traction/">Bitcoin</a> plugins are expected to integrate stablecoin spending gradually, fostering continued usage growth.&nbsp; 
This, in turn, could enhance Bitcoin’s monetary properties and its ability to resist censorship, further solidifying its position in the digital currency landscape. 
Despite the potential benefits of a Bitcoin-based stablecoin, technical challenges still exist. Bitcoin’s architecture is not natively designed to support external assets like dollar-pegged tokens.&nbsp; 
Additionally, history has shown that stablecoin users tend to gravitate toward platforms offering the lowest transaction costs and the highest speed.

Bitcoin-based stablecoin competing with modern alternatives

Table of Contents

Cryptopolitan_News

Other articles published on Jan 23, 2024

Legal Defense DAO Launches to Aid Embattled Tornado Cash Developers

Liquidations of $140 Million in Major Cryptos, Including ETH & BTC

Deutsche-backed Taurus Receives Green Light to Introduce Tokenized Securities for Retail Clients

TIA Crypto Price is at Make or Break Zone of $15; What’s Next?

Bitget Unveils New Messi Film to Kick off Second Year of Messi Partnership

What is Perpetual Protocol Coin?

Join our free newsletter for daily crypto updates!