Post
Topic
Board Nigeria (Naija)
Re: Why was bitcoin not created as a stable coin?
by
Techguysally
on 21/04/2023, 05:37:26 UTC
Bitcoin was made as a decentralized digital money with the intention of being used as electronic cash for online payments, its high volatility has led many to question its functionality as a stable store of value. However, it's important to note that the stablecoins did not exist at the time of Bitcoin's creation. Stablecoins have only recently been developed as a way to provide the benefits of blockchain-based digital currencies while minimizing price volatility. And by design, Bitcoin's value is determined by market supply and demand, which naturally leads to price fluctuations. Nonetheless, there are stablecoins linked to Bitcoin, such as Wrapped Bitcoin, which aims to provide the monetary value of Bitcoin while avoiding volatility.