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RE: Steemit Crypto Academy Contest / S8W2 - What are Stablecoins?
Hello crypto friend @hamzayousafzai, I have learnt additional information from your post.
Your attempt to question 2 particularly caught my attention, you explained the reasons why stable coin was created and I agree with all the points you have mentioned.
Yes, stablecoin was created to solve the biggest problem of cryptocurrency which is the issue of high volatility.
The high volatility rate of cryptocurrency limits it from so many things, such as being accepted as a medium of exchange.
Do you also know that stable coin helps to bridge the gap between fiat currency and cryptocurrency???
I wish you the very best in this contest 😊
Thank you for your comment! I'm glad that you found my explanation of stablecoins insightful and agree with the points I made.
Yes, stablecoins definitely help to bridge the gap between fiat currency and cryptocurrency. Because stablecoins are designed to maintain a stable value, they can provide a more familiar and stable trading experience for those who are more accustomed to traditional fiat currencies. This makes it easier for people to transition from using fiat currencies to using cryptocurrencies.