Stable Coins – Cryptocurrencies have been around for a while, but they’ve only recently gained mainstream acceptance. That’s because most people are still trying to understand blockchain and cryptocurrencies in general. No matter what you think of Bitcoin or other cryptocurrencies, there’s no denying that these technologies can be used for good purposes as well as bad ones. One area where this is particularly true is stable coins—or, simply put coins that maintain their value over time by keeping their supply stable (i.e., eliminating volatility).
Also Read: Meme Coins: What are They and How Do They Work
Controversial For Sure
Stablecoins are controversial. They’re not for everyone, and they aren’t a panacea that will solve all your problems. If you’re looking to replace fiat with a crypto token or if you want an alternative to gold as an investment, stablecoins probably aren’t what you’re looking for—but there are other options out there that may be better suited to your needs in those situations.
Stablecoins can be useful if you don’t want volatility in your portfolio (and this might mean that volatility isn’t really an issue for you.
Solving The Problem Of Volatility
Although stablecoins are often hailed as a way to make money, they are not meant to be traded or speculatively invested in. This is because stable coins like Tether (USDT) and TrueUSD (TUSD) do not hold a large amount of value in themselves; instead, they serve as a medium through which you can store your valuables without having to trust anyone else with them.
So what does that mean for investors? Well, if you have $1 USDT and want to spend it at Starbucks today using your phone app—the only thing keeping them from doing this will be their own internal ledger system tracking how many cents came from where at any given time. That means if someone else wants access to those funds too soon after receiving them from yours then he’ll need his own ledger system running on a hardware somewhere else within cyberspace before he can use them again!
Solving The Problem Of Volatility
Stablecoins are a solution to the problem of volatility. Volatility is one of crypto’s biggest challenges, as it makes it difficult for companies and individuals to use digital currencies as a store of value.
Stablecoins have been around for quite some time, but they have recently seen an uptick in popularity due to their usefulness in solving this problem. They’re not a new technology—many stablecoins were created decades ago by central banks or other financial institutions who wanted access to cryptocurrency markets without having their own funds tied up in volatile assets—and they’re not necessarily stable by themselves either; there are several factors that go into making a coin truly reliable while also maintaining its value over time (like how much demand there is).
A Stable Base For Crypto
Stablecoins are a way to reduce volatility. They allow users to make payments without worrying about the price of their funds changing in real time. This can be useful for both individuals and businesses, as it allows them to transact without having to worry about fluctuations in exchange rates or market values.
Stablecoins are not backed by anything; they simply represent a value based on fiat currency (like USD), but unlike traditional currencies, they don’t fluctuate in value as Bitcoin does. That said, there aren’t many stablecoin options out there right now—only Tether and Basis have made their products available publicly so far—and none is widely accepted yet outside of Japan where they’re used primarily by traders who want more stability than Bitcoin provides them with on its own.
Even If Volatile, They Can Be A Basis For Other Stable Coins.
Stablecoins can be used as a basis for other stablecoins. This means that you could build a cryptocurrency on top of a stablecoin and then sell your token to investors as an alternative to bitcoin or Ethereum.
The main benefit of this approach is that it allows users to trade their tokens with each other, which makes them more liquid than other cryptocurrencies like bitcoin or Ethereum (which are not traded on exchanges).
This isn’t exactly new; there have been calls for this kind of “backed” cryptocurrency since at least 2016 when Nathaniel Popper wrote about how he thought it might work at The New York Times Magazine. However, these attempts have mostly failed so far because they would require holding huge amounts of fiat currency just in case something went wrong with one’s own digital asset – the equivalent risk here being losing access to those savings if someone else decided they wanted their money back!
Conclusion
Stablecoins are not the solution to all of your problems, but they do solve one major problem – volatility. Many people have been waiting for a stablecoin that can be used as a basis for other cryptocurrencies or fiat currencies. The current market cap of all cryptocurrencies combined is around $100 billion, which is less than some popular stablecoins such as Tether and MakerDAO’s Dai (which was recently traded at over $1 trillion). As more investors get involved in cryptocurrency trading, we expect this number will grow rapidly over time as people look for ways to hedge their risk from volatile markets with something like Tether or MakerDAO’s Dai.
