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No one has figured out a way to do this without outside information. Some blockchains include price feeds from the outside world that let algorithms keep prices
by natrius 12y ago
No one has figured out a way to do this without outside information. Some blockchains include price feeds from the outside world that let algorithms keep prices relatively stable. Others use votes by currency holders to adjust the money supply both directly and indirectly (via interest rates) like a central bank would. Both strategies have led to cryptocurrencies that track the price of the dollar.
- phogster 12y agoCan you give examples of cryptocurrencies that track the price of the dollar?
- natrius 12y agoThe two I'm familiar with are BitShares and NuBits. BitShares uses contracts-for-difference and price feeds to create stable "BitAssets", like BitUSD, BitCNY, and BitGold. NuBits is a central bank on a blockchain, and it uses its control of the monetary base and interest rates to peg its value to the dollar. Disclaimer: I own some BitShares. I won't answer more questions here to keep things on topic, so email those to me.