"Fiat-backed stablecoins are therefore rarely actual cryptocurrencies, which causes them to inherit their main characteristics and shortcomings from the centralised banking system. Ultimately, they function in the same manner as fiat, backed by what amounts to an IOU."
Danial Daychopan wrote a short article linked below that has got me thinking. Are stablecoins bad for the cryptocurrency ecosystem because they are essentially fiat in digital form, or are they beneficial as they provide stability in an extremely volatile market? Curious to hear your thoughts, give it a read and let me know your angle on it.
https://medium.com/@DDhopn/stablecoins-3b93b4f1ddc5Whether we like them or not it was inevitable that stable coins will appear, if you are a trader and you want to get out of the market because you think it is going to go down your only option before was to sell your coins for fiat and this was a huge problem for those that wanted to retain their privacy because now they will need to go through KYC, but now stable coins offer you the possibility to get out of the market without getting out of the market.