As demonstrated again in the last few months, cryptocurrencies have a reputation for volatility that is well-deserved. After a sharp rise in price over the past six months, most cryptos fell 50% or more. This volatility discourages many people from investing in the crypto market. It’s a rollercoaster ride that keeps many people from participating in the crypto market.
Frustration
Despite the obvious fact that cryptos such as Bitcoin have repeatedly bounced back after periods of weakness to set new records, it is a frustrating experience. “What’s particularly exciting about cryptos?” says Brett Hope Robertson of Revix, an investment analyst. Revix provides direct exposure to USD Coin, a stablecoin known by its ticker USDC for those who are cautious about crypto and want to hedge against rand depreciation.
A stablecoin is a cryptocurrency that is tied to a commodity or currency, such as the US dollars, on a 1:1 basis. Each unit of this stablecoin is backed up with $1, which is a mixture of cash and short-term US Treasury bond bonds. The Centre consortium, a regulated financial institution, issues USDC.
Cryptoassets
Hope Robertson claims investors can redeem 1 USDC to get $1. This gives it a stable price, which is in contrast with other cryptoassets such as Bitcoin. USDC is not like regular US dollars. It does not require you to have a bank account or live in a specific area. This is one of the greatest advantages of stablecoins: they allow anyone, anywhere on the planet, to convert their wealth into a stable, fiat backed currency like the US dollar.
Hope Robertson says that USDC has another advantage: it can be transferred anywhere in a matter of minutes. Compare that to the current process of moving funds overseas using the Swift transfer and banking system. It is also cheaper to use.
The USD Coin
It has many uses. It is a safe haven that crypto investors can use in times of volatility. They can switch out volatile crypto assets like Bitcoin into USDC and avoid the friction and costs associated with moving funds into fiat. This can be done quickly and with minimal cost.
As more businesses and merchants accept digital assets as payment, the real opportunity to hold USDC is right around the corner. The decentralised finance (DeFi), eco-system that is emerging is already transforming traditional finance at a pace that was unimaginable two years ago.
Stablecoins
Stablecoins, as they stand now, are considered crypto assets and do not fall under exchange control. There is no limit on the amount of stablecoins you can own. The rand hedge properties of USDC are a key reason USDC is held. Hope Robertson points to the fact that the rand has declined by nearly 6.2% against the dollar in the past five decades.
“If you look at the long-term, this erosion of value can be quite significant. A deprecation rate of -6.2% can lead to a loss of around 70% of your wealth within 20 years. This wealth erosion can be stopped by holding US Dollars. It will work for you and not against you.
“Overall, the goal of this ecosystem is to accept stablecoins by as many wallets and exchanges as possible. The stablecoin market is becoming extremely crowded in recent years, but this only shows the huge demand for this technology by customers.
Remember
Why should you hold USD Coin? There are many benefits to holding USDC relative other stablecoins:
It is fully backed 1:1 by US dollars. It can trade 24/7/365 – It’s listed on more than 50 cryptocurrency exchanges – There is lightning-quick transaction speeds – There is a low minimum investment amount. – It can be redeemed for US dollars at any moment.
Hope Robertson says that USDC is a great choice for all crypto users because it has a stable dollar value and is maintained in reputable institutions. It is a way for wealth to grow without being exposed to volatility in crypto assets like Bitcoin.
SA Banks
These offer a range of zero to 4.5% annual interest on a South African rand depreciating – provided that you are willing to lock up your funds for at least three months. Revix offers a US Dollar denominated Savings vault that earns around 4 percent per year with no lock-up period.
“In real life, the bank will offer customers 1% and lend that money at 5% to its customers, while taking that 4% margin as profit. We work to optimize the rate we earn for our customers. This is how we can offer customers around 4%, unlike traditional banks.
Hope Robertson says that 4% per year is a safe amount of income. This means you can increase your wealth using US dollar-equivalent terms rather than rands.
Revix
Revix’s $1 Million USDC Vault Promotion. Revix is offering a special promotion on its new savings product. Revix will match your initial USDC savings vault investment up to $1 million USDC.
This USDC Match promotion begins Friday, 23 July 2021 and ends Sunday, 31 August 2021 at 23.59. You can also access their ready-made “Crypto Bundles” through Revix. These Bundles let you own an equally-weighted basket with the most successful and largest cryptocurrencies in the world.
Revix has more information on the Saving Vault, Crypto Bundles or a direct method to invest in Bitcoin, Ethereum or Pax Gold. Revix is a great way to invest. It brings simplicity, trust, and great customer service. It’s simple to use online platform allows anyone to securely own the top investments around the globe in just a few clicks.
Revix guides new clients from the initial sign-up to their first deposit or investment. Most customers can manage their portfolio once they have been set up but can also access the Revix team for support at any time.