Stablecoins Explained

Within the cryptocurrency market there are a lot of different types of cryptocurrency each with different uses.

Your standard cryptocurrencies such as Bitcoin, used often as a store of value, or Ethereum which enables utility and functionality.

Plus Stablecoins!

Stablecoins are a type of cryptocurrency that bring stability in value in volatile markets.

This stability is brought about by pegging the value of the digital asset to a reference asset, such as fiat currency, commodities, or other cryptocurrencies.

Similar to the gold standard of the 1960s. In theory 1:1 backed by a reference asset, would enable the stable coin value to track the value of the peg, and not be subject to radical changes in value.

Stablecoins can be used for payments, or just making it easier to hold stable value while trading cryptocurrency.

Personally, I have used stable coins a number of times, while trading.If I had made a profit on a token, and didn’t want to directly want to convert it to another token,

I would trade it to a stablecoin, this would enable me to wait until the market had moved in the direction I wanted, while maintaining a steady value

Stablecoins bring more functionality to the cryptocurrency ecosystem, enabling stability and payments in a volatile market.

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Thanks

Ben – AKA Waldo

PS: We recently hit 10+ subscribers to Bit Education! Exciting news! I thought this is a great twitter thread I related to a lot. This is the point I would like to make it too in this space.

Maybe one day we will get a thread from myself on the topic