Post
Topic
Board Altcoin Discussion
Re: Stable coin
by
chaoscoinz
on 26/05/2019, 20:18:33 UTC
Pls I'd like to be enlightened on the importance of stable coin in the crypto space... I hear Facebook coin will be a stable currency... what are the use of stable coins??

A stable coin is exactly what it sounds like, a coin with stability, whereas stable =  an almost static price. If you buy Bitcoin and are afraid the bear might attack (downtrend), you could then lock your balance away with a stable coin and keep relatively the same amount of money you had before the bear attacked.
    If a stable coin is worth $1, the price will most likely stay very close to being a dollar, without fear of it crashing to $0, hence it being stable!
   Many stable coins are backed by real dollars, or assets in order to achieve stability.