Stablecoins Place In The Bitcoin Space: Are They The Crypto Savior You Think They Might Be?
It’s been a rough year for crypto enthusiasts. The massive bitcoin crash of December 2017 took the wind out of many an investor’s sails, and it’s only natural to look for solutions to the volatility of the cryptocurrency market. For many, this has taken form under the umbrella of the “stablecoin”, a type of crypto asset that somehow — perhaps magically — fights back against the extreme price fluctuations that have broken so many would-be crypto investors.
There have been a number of stablecoin projects that have gained some major attention as a result of this push towards ending or at least curbing volatility among cryptographic tokens. While you can shout “stablecoins” at the top of your lungs, doing so doesn’t necessarily make these new blockchain projects any more likely to be the magic bullet that brings peace to the realm. In fact, there’s a lot of rather important points that have been brought up by critics that are keen to ensure no one falls for a so-called stablecoin that has fundamental flaws that won’t let it function as intended.
The truth is, stablecoins might indeed bring some stability to cryptocurrency. However, they may do so by crossing the Rubicon when it comes to betraying the core philosophies behind the crypto movement. Here’s why these new crypto assets might not be the knights in shining armor that some have suggested they be.