3 ms·
The "stable" refers to the absence of massive short-term volatility. The purpose of stablecoins is "banking the unbanked" - in other words, allowing people to s
by ogogmad 5y ago
The "stable" refers to the absence of massive short-term volatility. The purpose of stablecoins is "banking the unbanked" - in other words, allowing people to spend money who don't have bank accounts. At least I think that's what they're for. It allows people to use USD in the wild, wild west.
- noxer 5y ago>The "stable" refers to the absence of massive short-term volatility. Nope, See my reply, stable refers to pegged to something and thus stable in value to that something. The absence of massive short-term volatility is not a property of stablecoins its a property of pegging to something without massive short-term volatility. Stablecoins exist in the Fiat world too. For example the Bahamian dollar is pegged to the US dollar on a one-to-one basis. So its a Fiat USD stablecoin. It doesn't have a long term stable value (buying power) just like the USD does not.