RE: Stablecoins Explained

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Stablecoins Explained

in cryptocurrency •  7 years ago 

My friend would say Stable coins is the "holy grail" in digital currency.

Generally, Cryptocurrencies are well known for their extreme volatility, as it’s not uncommon to see coins like Bitcoin and Ethereum rise or fall by 10-20% in a 24 hour time frame.

Although this level of volatility is beneficial to traders and investors, it also hampers cryptocurrency’s real-world adoption.

I wanna say from a practical perspective, businesses do not want to transact in a currency marked by volatility and risk. It would be really difficult, for example, to pay an employee’s salary in Bitcoin if the purchasing power of his paycheck is constantly in flux.

Volatility would also make it difficult for consumers to make daily transactions using cryptocurrencies.

But then, I believe this stable coins have come to bridge that gap. At least from what I've read and a little investigation too.

I'm hoping it stays that way or improves.

Thank you for your teachings my friend

#TeamHodl

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