Why did crypto creators establish stable coins??

[Sincerem]

Everyday I ask myself , what is the reason behind the creation of all this stable coin in the crypto market. When I know they aren't volatile in nature, and can't even appreciate nor depreciate. Their current state isn't a profitable one for investors, i don't see stable coins going higher either. Cos they work hand in hand with country's fiat currency, they increase only when the country they represent in the digital currency increases. That kind of increment can't bring profit to investors cos fiat currencies don't explode over night like the way volatile digital coins do.

What is the reason behind the establishment of stable coins?? when the coins won't be a profitable one for investors.

 

[Taimoor Jutt]

I think you are talking about besides of crypto currency world. Every country has it's own currency, we can exchange a lot of thingd with this currency, Currency is a token or ticket which used to buy anything with the ratio of currency, so establishing of this currency is not too bad. I just got this and i answered, may be i did not get the actual meaning of this post?

 

[Kayzzy3]

Everyday I ask myself , what is the reason behind the creation of all this stable coin in the crypto market. When I know they aren't volatile in nature, and can't even appreciate nor depreciate. Their current state isn't a profitable one for investors, i don't see stable coins going higher either. Cos they work hand in hand with country's fiat currency, they increase only when the country they represent in the digital currency increases. That kind of increment can't bring profit to investors cos fiat currencies don't explode over night like the way volatile digital coins do.

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What is the reason behind the establishment of stable coins?? when the coins won't be a profitable one for investors.

Since stablecoins are tied to external fiat currency reserve, the main purpose of stablecoins is have a safe heaven for investors in that crypto currency.

Secondly, since the price is relatively stable at $1, investors can convert their Cryptos to stablecoin to mitigate losses in the event of the Crypto Currency loosing value.

 

[ahmedo24]

Since stablecoins are tied to external fiat currency reserve, the main purpose of stablecoins is have a safe heaven for investors in that crypto currency.

Secondly, since the price is relatively stable at $1, investors can convert their Cryptos to stablecoin to mitigate losses in the event of the Crypto Currency loosing value.

Thanks for your explanation, probably he has forgotten that the exchange plaforms has entry point into the platform for all activities, these stable coins are the ones we can easily use to buy other coins, when traders are done trading they convert all their coins to Stable coin.

 

[Azam786]

Everyday I ask myself , what is the reason behind the creation of all this stable coin in the crypto market. When I know they aren't volatile in nature, and can't even appreciate nor depreciate. Their current state isn't a profitable one for investors, i don't see stable coins going higher either. Cos they work hand in hand with country's fiat currency, they increase only when the country they represent in the digital currency increases. That kind of increment can't bring profit to investors cos fiat currencies don't explode over night like the way volatile digital coins do.

What is the reason behind the establishment of stable coins?? when the coins won't be a profitable one for investors.

I think you are talking about the fact that cryptocurrency is used as money Each country has its own calculation I mean if i am from pakistan its currency is one bitcoin it is about 30 thousand rupees And that's about a hundred dollars We can use this currency in any country G is used as money, meaning we can change it and buy anything

 

[Sincerem]

I think you are talking about the fact that cryptocurrency is used as money Each country has its own calculation I mean if i am from pakistan its currency is one bitcoin it is about 30 thousand rupees And that's about a hundred dollars We can use this currency in any country G is used as money, meaning we can change it and buy anything

Okay, you made a point there, I think it represents their own fiat currency in the digital world. They can make use the coin on the digital way to do other transactions and still get same value of what they exchange for via their own fiat currency.

 

[LaylaG]

I don't even know the reason why some cryptocurrency are called stablecoin maybe the founder or which did not make it to the civil Court just that people don't want to invest in that particular account that is the reason it is called a stable cryptocurrency or coin

 

[Nabeel119]

Stablecoins are cryptocurrencies designed to minimize the volatility of the price of the stablecoin, relative to some "stable" asset or basket of assets. A stablecoin can be pegged to a cryptocurrency, fiat money, or to exchange-traded commodities (such as precious metals or industrial metals).

 

[Patrik]

because they are easier to control than volatile cryptocurrencies or cryptocoins due to lack of volatility, it might seem pointless to create something that has stable instead of using already existing currencies, but there are made for competition purpose

 

[Royalty]

I think the reason for creating stable coin is to establish a less volatile system in cryptocurrencies.
Stablecoins try to tackle price fluctuations by tying the value of cryptocurrencies to other more stable assets – usually fiat. Fiat is the government-issued currency we’re all used to using on a day-to-day basis, such dollars and euros, and it tends to stay stable over time.

 

[Ehizzy1]

Well i think maybe its because of trading like people could make use of it in buying and selling crypto currency , since crypto to crypto is really volatile and non corresponding, so they have to find an alternative to make use of and tackle such thing ,and the stable digital currency is important because you can use it for transaction also
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Well i think maybe its because of trading like people could make use of it in buying and selling crypto currency , since crypto to crypto is really volatile and non corresponding, so they have to find an alternative to make use of and tackle such thing ,and the stable digital currency is important because you can use it for transaction also

 

[Oloritoks]

They had to ensure stable coin so as to make people trust the process and on the long run attract more people into the process this alone has contributed into many people having more account with Crypto-currency more than ever.

 

[George10640]

So do you mean cryptocurrencies has no volatility behind it?For sure I didn't knew about that.I am very sure that the stability of the coin is achieved when people trust and believe in it.The moment the coin gains more trust I think that's when people will put in their investments. The more people invest in the more the coin gain its volatility itself as the driving bus.

 

[Olubayo12]

Everyday I ask myself , what is the reason behind the creation of all this stable coin in the crypto market. When I know they aren't volatile in nature, and can't even appreciate nor depreciate. Their current state isn't a profitable one for investors, i don't see stable coins going higher either. Cos they work hand in hand with country's fiat currency, they increase only when the country they represent in the digital currency increases. That kind of increment can't bring profit to investors cos fiat currencies don't explode over night like the way volatile digital coins do.

What is the reason behind the establishment of stable coins?? when the coins won't be a profitable one for investors.

As the name implies stable coin... is a coin that is created so as to make provision for people who are interested in investing in Cryptocurrency but are afraid and scared of the volatility of the coin and can't bear it. with stable coin, your assets or your funds remain unchanged.

 

[Ralphjoe]

Stable coins were invented for the sole reason of payment for goods and services on online platforms because these cryptocurrencies are very much stable in nature, they don't ever increase in price rapidly. This is quite good for shops, malls that desires an online currency that doesn't reduces in price arbitrarily.

 

[Sotherefore]

I do not know the actual reason why stablecoin was great but I think the reason behind regression of stablecoin is that if you need to save your cryptocurrency in a more stable way without the need of investing it in a volatile cryptocurrency that is when the stablecoins cones in.

 

[Jlife]

Stablecoin sometimes can be a representation of a certain type of local currency, and the funny thing about the stablecoin is that no matter how people invest it is always still and another thing that could causes this is because it is easier for people to save their money there than volatile cryptocurrency.

 

[Sheyemanu]

I feel that since stablecoins are tied to external fiat currency reserve, the main purpose of stablecoins is have a safe heaven for investors in that crypto currency. Secondly, since the price is relatively stable at $1, investors can convert their Cryptos to stablecoin to mitigate losses in the event of the Crypto Currency loosing value since cryptocurrencies are so volatile

 

[Irfanali]

Stable coins are cryptocurrencies designed to minimize price fluctuations. This can be accomplished through various mechanisms, such as linking its price to fruit currencies, commodities, or price stability algorithms.

 

[bhennie]

I believe stability of coin was made for some reason not just because they make the value of cryptocurrency more attractive to those that would invest but also to make it stand the test of time either when it is hit by various financial events