Cryptocurrency Q&A
What are stablecoins and how do they work?
What are stablecoins and how do they work?
KDramaLegendary
Sat Feb 15 2025
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7
answers
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Stablecoins are a type of cryptocurrency designed to maintain a stable value, typically by being pegged to a fiat currency, commodity, or another cryptocurrency. They work through different mechanisms such as being backed by reserves of the asset they are pegged to, or by using algorithms to adjust their supply in response to market conditions, thereby maintaining price stability.
7 answers
PulseRider
Mon Feb 17 2025
The CORE concept behind stablecoins is that each unit is intended to maintain a fixed value.
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Tommaso
Mon Feb 17 2025
Specifically, stablecoins are often pegged one-to-one to a government-issued currency.
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CryptoNinja
Mon Feb 17 2025
This peg ensures that the value of the stablecoin remains stable and predictable.
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henry_harrison_philosopher
Mon Feb 17 2025
Stablecoins represent a unique category within the realm of cryptocurrencies.
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CosmicDreamWhisper
Mon Feb 17 2025
Tether, the largest stablecoin in existence, operates on this principle.
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