Diem the soon to be new cryptocurrency, but will it be worth $20,000 a coin?Photo by NeONBRAND on UnsplashCryptocurrencies are now more attainable and mainstream than ever before, with even China trialing a digital currency, the Digital Yuan. But no introduction would be complete without mentioning Bitcoin and its astronomical rise to front pages and news media darling. Bitcoin uses blockchains, which is where the term cryptocurrency comes from the cryptographic functions, which help in decentralising the currency, and so, there is no reserve bank or underlying assets to back its value. Facebook has attempted to create its own, Diem, and here is why.Photo by Hanny Naibaho on UnsplashThe answer- China. Facebook saw from China how virtual payments could work with most Chinese residents living in Big cities using WeChat\u2019s payments service or Alipay ( Alibaba\u2019s payment system). So Facebook decided to get in on the act and created a WhatsApp payment system. If you didn\u2019t know they did, that\u2019s how much it flopped. They scrapped that idea as Western Countries did not behave in much the same way as Asian countries and next attempt on the list is cryptocurrency. This is a way to catch the multi-trillion-dollar payment industry.Photo by Piotr Cichosz on UnsplashWhere their proposed cryptocurrency differs is that it has economic value. Bitcoin was based on demand and has no underlying value and hence when the demand and supply vary even slightly, the price fluctuates in wild swings. Diem will have assets composed of Fiat currencies which form the underlying basket of goods that would hedge its value. Goes without saying that US dollar accounts for most composition.As such, this makes it more stable. Moreover, it cannot be \u201cmined\u201d but bought in much the same way as buying another currency- through an exchange. The exchange is proposed\u2026<\/p>","protected":false},"excerpt":{"rendered":"
Diem the soon to be new cryptocurrency, but will it be worth $20,000 a coin?Photo by NeONBRAND on UnsplashCryptocurrencies are now more attainable and mainstream than [\u2026]<\/span><\/p>","protected":false},"author":0,"featured_media":2796,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/afluxcoin.com\/fr\/wp-json\/wp\/v2\/posts\/3305"}],"collection":[{"href":"https:\/\/afluxcoin.com\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/afluxcoin.com\/fr\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/fr\/wp-json\/wp\/v2\/comments?post=3305"}],"version-history":[{"count":0,"href":"https:\/\/afluxcoin.com\/fr\/wp-json\/wp\/v2\/posts\/3305\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/fr\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/afluxcoin.com\/fr\/wp-json\/wp\/v2\/media?parent=3305"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/afluxcoin.com\/fr\/wp-json\/wp\/v2\/categories?post=3305"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/afluxcoin.com\/fr\/wp-json\/wp\/v2\/tags?post=3305"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}