Maker coin is one of the most valuable coins in all of cryptocurrency, and it is also the most misunderstood one. Maker coin is a component of the system that creates the most stable coin in crypto, which is always worth $1.
It’s the best because, unlike Tether, DAI has been audited multiple times. Maker coin is, in many ways, the yin to DAI’s yang. When DAI succeeds, so does MKR, and the one cannot exist without the other.
DAI is backed by cryptocurrencies like Bitcoin and Ethereum. As a result, people are confident in its value, because real cryptocurrencies are staked as collateral.
The system needs a way to pay down these debts in the event this collateral loses value. Enter Maker coin. We’ll discuss this in greater detail below, but for now, understand that the Maker coin gains value as it performs less work.
What is Maker Coin MKR?
Maker is one of the first cryptocurrencies built on the Ethereum blockchain, and is also the most valuable (coin for coin) ERC20 coin in the entire cryptocurrency top 50. Maker awaits a project that will activate the DAI coin, which is always valued at $1.Maker MKR is a complex concept in its implementation, but some early investors care only about the current Maker coin price, which is over $700, after debuting at just over $20. It should be clear by now that Maker has been a wild ride for investors, and its price has produced immense profits for many. But why and how does this work? Let’s find out.
MakerDao Explained: What is the Maker Platform?
Maker is part of a larger system that involves a stability coin called DAI. To really understand Maker, you have to understand DAI. DAI is fixed at $1, no matter what happens. But what does this mean, and why is it different from Maker? The Tether system says it is backed by US dollars, one dollar for every Tether. But there are more than 2 billion Tethers in circulation, and Tether has never proven that they have this money. Users just have to hope and trust that it’s true and that the whole system is secure.
The process of using DAI involves placing other cryptocurrencies or digital assets as “collateral”, and then being rewarded with a certain amount of DAI in proportion to the amount of collateral they have locked away in the Maker smart contract. Think of this as the trader financing her own loan. So why would anyone do this? Stable currencies can be very helpful for traders. Suppose you want to buy NEO, but only if the price reaches $60.
Even if you wait and hope, when NEO dips its price, the entire cryptocurrency dips with it, so the cryptocurrency that the user was saving for NEO would lose value along with NEO, meaning waiting and saving was in vain.
Price stable coins, however, would be able to hold their value no matter what the market did. When things dip, buy with the stable coin. Profit! There are other uses for DAI, but this is the biggest benefit.
However, what would happen to the DAI’s value if there were to be a sudden collapse of the coins used as collateral? Would the whole system collapse?Maker Coin Saves the Day
Maker coin prices will go down if collateral currency prices crash, since new Maker coins will be issued. However, if collateral currency prices stay the same or go up, Maker coins aren’t needed much at all.
There are approximately 600,000 Maker MKR in circulation. That’s very small for cryptocurrency. Bitcoin has an approximate 17 million supply, and Maker coins represent a mere 3.5% of that value. Maker is becoming more and more popular, driving the price of MKR coins up and up and up, without signs of slowing down. The coins only lost value recently because of the crypto market crash, yet they are still expensive at $700+.
The whole Maker system is based on the expectation that cryptocurrency is going to thrive in the future. Maker will not end up having to bail out DAI collateral. Instead, MKR holders will profit and be able to use their MKR holdings as voting power in the Maker community. There’s much more to learn about Maker coin MKR, DAI coin, and the Maker system as a whole. You can engage in the Maker whitepaper and online communities for more information.
How the Decentralized Stablecoin System Works and Who Is Behind It?
Bitcoin and Ethereum (sort of) are governed by central foundations, but Maker is governed by a decentralized team of enthusiasts and developers, who have become known in the community and have assumed leadership roles.
Kenny Rowe, for example, dedicates much of his waking time to developing and marketing the Maker system.
You can get a sense of the power of Maker’s grassroots approach by checking out Kenny Rowe’s YouTube channel, one video of which is seen below:
Maker MKR does not have staff bios or photos, but it’s not a company, so it makes no sense to review it without them.
The DAO is very nearly becoming a true Decentralized Autonomous Organization (DAO), even though it has developers, a governing board, voters, and holders, but it is not owned by anyone, and it has no central leader.
World’s Best Cryptocurrency? Maker Coin’s Strong Stability/DAI Concept
You can buy Maker coin through our Buy Maker Coin Guide or using a service such as BiBox (not gonna lie, we hadn’t heard of it before writing the Buy Maker Coin Guide).
As far as why to invest in Maker coin has already been outlined, much has already been stated. If you purchase the Maker coin, it can be stored in MyEtherWallet until the Maker coin price rises. Maker Coin, with its tiny supply, is helped by fewer people, but they hold tremendous value both in terms of financial value and voting rights within the Maker system. Maker coin is already operational, and thousands of people use it every day.
The decision to invest in Maker coin depends on how you envision Maker’s future.
We are very impressed with Maker’s vision and execution in the real world, so we see it as the #1 stability coin of the future. But do you think Maker is too complicated to be widely adopted?
It’s a cryptocurrency with great potential and many important applications, as many analysts believe. As always, you are the only person who can decide if Makers coin is right for your portfolio.
Make sure you do your own research before making a decision. However, if you decide to buy Maker coin, do so quickly while the price is still down from its all time high.
Maker Coin Review: A Cryptocurrency With A Bright Future?
Using Maker Coin, a strong stability coin like DAI is possible. It is one of the best concepts in the world of cryptocurrencies.
Despite the uncertainty of Maker coin’s future, we believe it will have a bright future if it has a strong product and a solid international team.
Investors will likely be rewarded handsomely as Maker coin becomes more widely adopted and as the cryptocurrency industry grows in general.
Via this site.
Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
