How do stablecoins really work? And how stable are they really?

Stablecoins are cryptocurrencies that are pegged to a stable asset, such as gold or the U.S. dollar. The price of these tokens is designed to remain constant and not fluctuate with the market.

Stablecoins have been around since 2014, but they’ve become increasingly popular in recent months as investors look for alternatives to volatile cryptocurrencies like bitcoin and ether. Tether and Dai are two of the most well-known stablecoins, but there are many others competing for market share.



The idea behind stablecoins is that they can offer users a way to store their money safely without having to worry about dramatic fluctuations in price or losing their entire wallet due to hacks or theft.

However, there are some concerns about how “stable” these coins really are and whether they can truly deliver on their promises of stability

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