read a useful article
https://academy.binance.com/en/articles/what-are-stablecoins#crypto-backed-stablecoins
You are confusing 2 words: stability and stablecoin.
“Only death and taxes are stable.” - Adam Smith(C)
The main purpose of stablecoins is to be backed by fiat currency at a 1: 1 ratio.
Topic: Stablecoins are not stable (Read 32 times)
Well, BTC/USD is not stable at all do we cannot consider that as stable pair. There’s a limited coins who are the real stable, just like the USDT if you see its value in the market, it stays for only $1 and that can be considered as the stable one. Let’s just not mislead people from saying stable coin, because not all are real.
The so called stablecoins are usually paired with the US Dollar. However, true stability should mean that they correlate well with the increase in the cost of living. Thus, calling stablecoin to UST or others is simply not correct.
A true stablecoin would not be linked to USD but to the level of prices in a basket of products in different countries. I am going to dare to say that it should be related to gold, as this metal has traditionally preserved its value (some people argue)
I guess that what I am trying to say is that stability cannot be measured in currency.
A true stablecoin would not be linked to USD but to the level of prices in a basket of products in different countries. I am going to dare to say that it should be related to gold, as this metal has traditionally preserved its value (some people argue)
I guess that what I am trying to say is that stability cannot be measured in currency.
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