Quote from: BitGoba on July 17, 2025, 08:56:56 AM

Why are "stablecoins" called stable when they are pegged to fiat currencies like the dollar?We know that the dollar isn’t truly stable ,it loses about 7 to 10% of its value annually due to inflation. More and more, we notice that with the same amount of dollars, we can buy less and less. For example, if you had $10,000 in 2020, nominally you still have $10,000 today, but its purchasing power is only about $6,800.Maybe they are considered “stable” only in terms of losing less purchasing power

Why are they called “stable” when they are actually unstable?

Well, I'll give you the real benefit of the doubt with your context. Sometimes we think things are understood even if they're misnamed.

I think the bridge analogy works best here.

You've crossed a bridge... knowing it's not really a bridge, but... you still cross it, regardless of whether it doesn't really fulfill that function, but... you cross it at risk and use it as many times as you can. In fact, there are "bridges" that use harnesses, so in case the bridge fails, you stay "alive," so you finish crossing.

In conclusion, given the circumstances of the ecosystem and how easy it is to name them, some paths, risky crossings, are nicknamed bridges. The same thing happened with stablecoins, which, as you say, shouldn't be called that, but they fit the analogy I mentioned. In conclusion, use your harness and common sense.