What are the use of stable Coins ?
Cryptocurrency came with the strategy of offering world a Decentralized finance . At first it was not easy for it's adoption but as time goes on people started capitalizing on it's Volatility to make profit. Everything that have advantage also have disadvantage , so the Volatility becomes a challenge for some investors especially when there is a dip in the cryptocurrency market.
Examples include : Tether ( USDT ) , USDC , BUSD .
This opened up opportunity for Stable coins to be inculcated into the cryptocurrency world. They were thus used for the following purposes;
1. Controlling volatility of cryptocurrency especially during the bearish periods.
2. As a store for profit. When people make profits from their cryptocurrency investment , they will sell the coin for stable coins and thus have the fund stable.
3. As a pair for buying other coins. People can use their money in usdt to buy any coin that they are interested in.
4 As an investment for counties with weak Fiat currency. Some investors save their Fiat money is stable coin and withdraw back to Fiat when the US dollar has risen higher above their Fiat currency.
El Salvador are currently planning to have their own stable coin in preparation for adoption of bitcoin as a legal tender come September 7, 2021.