The difference between Stablecoins and other cryptos is the following explanation

Lovata Andrean

The difference between Stablecoins and other cryptos is the following explanation
The difference between Stablecoins and other cryptos is the following explanation

Rancakmedia.com - Cryptocurrencies are often characterized by dramatic price movements and severe volatility. But there is one cryptocurrency that is intended otherwise, called Stablecoins.

Stablecoins are supposed to offer coins whose prices are stable. This implies that these coins have the same value from the day you buy them to the time you use them or exchange them.

This currency has succeeded in maintaining price stability because it refers to currencies such as the US dollar, or commodities such as gold. Although many stablecoins are currently pegged to the US dollar.

Because their prices are relatively stable, most investors acquire stablecoins not for profit, but rather as a location to store money in crypto infrastructure and for use when buying and selling other assets.

They are tools of the trade,” said Stephen McKeon, professor finance at the University of Oregon.

The Difference Between Stablecoins and Other Crypto

Stablecoins were initially formed in 2014 to help simplify transactions in the crypto system, because at that time banks were unwilling to provide accounts to crypto companies.

Given the anonymity of traders crypto and the possibility of money laundering, terrorist financing, and tax evasion, banks are not interested in having such companies on their books.
“Bitcoin miners and Bitcoin exchanges, everyone wants a way to use US money without having to use the banking system,” McKeon added.

While other unlawful activities remain a problem, the crypto market has become too big for certain banking and government sectors to ignore.

Therefore, nowadays several banking giants and authorities are starting to get involved with stablecoins. Even a number of central banks from various countries are studying the potential of launching their own digital currencies.

Conclusion Regarding the Differences between Stablecoins and Other Crypto:

Stablecoins are supposed to offer coins whose prices are stable. This implies that these coins have the same value from the day you buy them to the time you use them or exchange them. Most investors acquire stablecoins not for profit, but rather as a location to store money in crypto infrastructure and to use when buying and selling other assets.

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Lovata Andrean

Hi, I'm Lovata, I'm not Ai but I am a content writer for SEO, Technology, Finance, Travel, Cooking Recipes and others. I hope this can be useful for all my friends. Thanks