Let's have a brief discussion about stable coin
Assalamu Alaikum
How are you? By Allah's grace, I'm doing very well. Today we will discuss stablecoins, stablecoins are one of the most important coins in the crypto market. Before we know about stablecoins we need to know about crypto market first. Next, we will discuss why stablecoins are so important to the crypto market and the main purposes and opportunities for stablecoin applications. We all know that crypto market is a very situational market, there are many types of crypto coins or crypto currencies being managed in the crypto market. The main feature of this crypto market is the volatility in price and daily change in price.
The value of coins in the crypto market is never fixed. As all crypto coins fluctuate in price, it is not easy for everyone and new crypto users in general. It is normal to face high volatility in the crypto market, it is important for all of us to be aware of it. Stablecoins are essentially pegged to a fixed value or community value, which helps to keep it almost mnemonic or persistent within the crypto market. Stablecoins provide stability and price certainty, stablecoins are named stablecoins in the cryptomarket.
Stable coin keeps its value stable in the crypto market, increasing the number of crypto users in the crypto market day by day. There are many other coins in the crypto market like Bitcoin, Ether, BNB, Dot etc but these coins are not stable coins. In addition to the use of stablecoins, the reason why stablecoins are important is because they benefit all users in the crypto market, especially when it comes to buying or selling products, stablecoins play an important role because they cannot increase or decrease the price of a product. As a result of which a person can buy and sell products very easily without any kind of damage, loss or trouble. Because other coins in the crypto market are not stable, if a person buys a house with $1,000 worth of bitcoins and the price of bitcoins drops a few days later, the person will have to face a lot of losses, so whether or not to buy a product with stable coins everyone is satisfied.
Today's discussion concludes here. I hope you've found it interesting. Please share your thoughts on today's topic. Prayers for everyone. May everyone be well. Amen.
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If only people can really make wise use of stablecoins, I actually see them as a better option than others volatile coin out there
One thing for sure about stable coin is in a world of extreme volatility they provide the only stability, pegged to an underlying asset allows them maintain their stability giving us a little sense of control here as we can bank on them in cases of extreme volatility.