Stablecoins: According to The Block, a publication dedicated to cryptocurrency, the number of stable coins in circulation globally has jumped from $29 billion in January to $117 billion as of early September.
Note: The development of Bitcoin and thousands of other cryptocurrencies in a little over a decade has changed the definition of money.
What are stablecoins?
- Cryptocurrency is very volatile, making it less practical for transactions like payments or loans. Prices tend to vary a huge amount in a short span of time.
- Take for example Bitcoin. Its price goes up or down as much as 15-20% even with a single tweet by billionaire Elon Musk.
- That’s where stablecoins come in.
- Stablecoins are cryptocurrencies without volatility.
- They share a lot of the same powers as other cryptos, but their value is steady, more like a traditional currency, i.e. the US Dollar, Indian Rupee, etc.
- They are meant to provide the steady value of government-issued money in digital form for blockchain transactions, but they are issued by private entities.
- Popular dollar-tied tokens include Tether and USD Coin.
- The first stablecoin, created in 2014, was Tether.