Understanding The Concept Of Stablecoins And Why They Are Important?

[Paglamon]

Cryptocurrencies are steadily becoming the next big thing in the market with more than 5000 coins already out there. In no time this number will increase to 10000 and then there would be thousands of crypto coins in the market. Although, there’s no way that all of these would get the same amount of attention and most of them would only suffer failure. Like you can see, almost 90% of crypto coins developed till now is a failure with only 100 to 500 seems to survive the market. Among these coins are some successful stablecoins projects like Tether that maintained a good reputation in the market. In this article, we are going to know more about the concept of stablecoins and see how they are important for our economy. So, let’s get started with it right away.

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[tonymillions84]

The cryptocurrency is another means of investment of the modern century. Most people believe it is still in the early stage and the right time to invest is now. for the stablecoin, it is an alternative to fiat and a sure way to replace the centralized money. there are stable coins that are not worth investing apart from the current USDT and USDC. There are other stablecoin that are not suitable for investment.

[debra]

Stablecoin, it has morebatable price and the gap will not be high. However, for trading, i do not tjink that it is oke tonget profits

[Istiak]

I think the stable coin is only needed to escape any dumping situation. A trader can also use it to catch up on profitable trade when the market moves ups and downs. Otherwise, I prefer to hold BTC in my balance instead of any stable coin because by holding a stable coin I will not make any money. I think that's not a good idea to hold stable coin for a long time.

[pulpy]

Stables more stable than fiat x)
Good way to store coins instead of banks

[MrSpasybo]

In my opinion, some values ​​make stable coins as important as a bridge between two economies - traditional (centralized) & crypto (decentralized):
+ the stable coin value is exactly equal to the price of a common fiat type by Proof-of-reserve. This makes new users more secure when approaching crypto, anyway they still find USD more familiar than BTC
+ stable coin is where traders/holders protect their assets during high volatility, simply because in their minds, fiat is still a measure of asset value.
+ stable coin becomes the first viable option to apply cryptocurrencies to the current economy without conflict with the power of state banks.
+ stable coin has a great impact on the price of cryptocurrencies thanks to the additional issue. BTC always increases when USDT is issued more

[Noverteno]

The cryptocurrency is another means of investment of the modern century. Most people believe it is still in the early stage and the right time to invest is now. for the stablecoin, it is an alternative to fiat and a sure way to replace the centralized money. there are stable coins that are not worth investing apart from the current USDT and USDC. There are other stablecoin that are not suitable for investment.

In my opinion, stable coins are not intended for investment at all. These are the same ordinary currencies of states, only in digitized form. For cryptocurrency users, it is also a good buffer between cryptocurrency and fiat. Stable coins create good additional conveniences when using cryptocurrency.
Stable state coins are likely to create serious competition for a decentralized cryptocurrency as a means of payment.

[masterrex]

The Stable coins are also called a cryptocurrency because they are using the same method as the other existing cryptocurrencies which is the cryptography with the help of blockchain technology, But then there are two distinctive features and characteristics of a Stable coin because the ordinary cryptocurrency is too volatile that cause to fluctuate much while the Stable coin is not subjected for hard fluctuation because it was backed by a stable asset like Fiat, Gold or other mechanisms that makes it more stable. It is important to the crypto market because it is represented the centralized fiat economy which is determined the trading prices in US dollar against any of the existing cryptocurrencies particularly Bitcoin. But some other Stable coins have some issues regarding its authenticity of being back by a real US dollar in 1 is to 1 basis some are Yes but some are not, Which is likely to involve with Tether.

[Ganesa99]

A stablecoin is a cryptocurrency designed to maintain stable value, rather than experiencing significant price changes. The main function of current stablecoins is to send, receive and exchange value around the world efficiently and at minimal cost with no inherent price fluctuations for Bitcoin or other digital assets.

[Esperanza12]

Stablecoins provide the convenience of arbitrage between geographically different transaction locations. Before stablecoins were massively adopted by exchanges, it was a complicated process to arbitrate BTC between exchanges as fiat transfers were slow (it took a few days. their important neentaamf

[bigcash2011]

Stablecoins are growing in market cap and volume everyday so personally i assume that more and more money is flowing into crypto because people buying stablecoins are eventually buying crypto like btc and eth with it and that is why im bullish about crypto market and as far as utilities of stablecoins are concerned i think they will grow in use cases and products over time.

[Hanako]

Stable coins also play a role in the cryptocurrency market. In a few moments, when Bitcoin and ethereum go up and down continuously, not everyone is willing to participate. Some will choose to buy stable coins to store and preserve assets. I always choose USDT because it is very liquid.

[Rosemaryy]

Stablecoin is a fixed-price Cryptocurrencies, the market value of Stablecoins is often tied to the price of a fixed asset, like the USD, the reason it matters because it possesses properties like the Right Price. Stable, Scalable, Highly Secure and Decentralized

[JacobJacob]

Stablecoin sẽ tốn nhiều chi phí và cần sự tin tưởng nhưng nó là một hình thức Stablecoin có sức mạnh về giá. Stablecoin loại này sẽ đứng vững trước bất kì biến động nào của thị trường Crypto, bởi vì tất cả chúng đều được đảm bảo bởi lượng tiền pháp định đang được dự trữ và cho dù thị trường Crypto có sụp đổ thì Stablecoin này cũng miễn nhiễm. Đây là đặc điểm duy nhất mà chỉ Stablecoin loại này có.

[Naimah]

Unsecured stablecoins are very vulnerable to market fluctuations, in which case the market plunges. The stablecoin needs an initial liquidity support until it reaches a balance.