Introduction to Stablecoin

When Satoshi Nakamoto published the Bitcoin whitepaper, he believed that Bitcoin would become electronic cash, but this hasn’t happened for a number of reasons. One reason is because Bitcoin has an inelastic money supply which causes price inflation or deflation in response to changes in demand. This design feature makes Bitcoin a great candidate for serving as a long term store-of-value, but not so much as a day-to-day means-of-exchange. Stablecoins build off of the foundation Bitcoin created but go a step further by solving the problem of price volatility. And by doing so, stablecoins have become a critical infrastructure layer for the decentralized economy. In the next few videos we’re going to what they are, why we need them, and the different approaches to achieve price stability.