Stablecoins: Beyond Pegs, Towards Algorithmic Resilience
Imagine a cryptocurrency that offers the stability of traditional fiat currencies like the US dollar, but with the speed, transparency, and borderless nature of blockchain technology. This is the promise of stablecoins, and they are rapidly changing the landscape of digital finance. Understanding stablecoins is crucial for anyone involved in or interested in the world of cryptocurrency, blockchain, or fintech.
What is a Stablecoin?
Defining Stablecoins and Their Purpose
A stablecoin is a cryptocurrency designed to minimize price volatility relative to a stable asset or basket of assets. Unlike volatile cryptocurrencies like Bitcoin or Ethereum, stablecoins aim to maintain a relatively stable value, often pegged to a fiat currency such as the US dollar. This stability makes them useful for ...