A stablecoin is a digital currency backed by a “stable” safe haven such as the US dollar or gold. Stablecoins are designed to reduce volatility compared to non-backed cryptocurrencies like bitcoins.
Stablecoins are a bridge between cryptocurrencies and fiat currencies because their price is backed by a safe haven such as the US dollar or gold. Much less volatile than other crypto-assets, such as bitcoins, this form of digital currency is more suitable for current transactions, transfers from one exchange to another and all kinds of operations.
The combination of the stability of traditional assets and the flexibility of digital assets is very successful. Having become one of the most popular ways to store and trade value in the crypto-asset ecosystem
- Limit volatility . The value of cryptocurrencies like bitcoin and ethereum fluctuates wildly, sometimes from minute to minute. With the asset backed by a more stable currency, buyers and sellers have confidence that the value of their tokens will not suddenly soar or crash in the short term.
- Trade or save assets. No need for a bank account to hold stablecoins, which are easy to transfer. Sending stablecoins to any corner of the world is a breeze, including countries where the US dollar may be difficult to obtain or the local currency is unstable.
- Earn interest You can easily earn interest (generally better than that offered by a bank) on an investment in stablecoins.
- Transfer money cheaply. It is possible to send a million dollars worth of by paying less than a dollar fee.
- Send money anywhere in the world. Fast and cheap, stablecoins like G are a good choice for sending money around the world.