Tuesday, December 6, 2022

Cents and stability, Nov. 20–27 By Cointelegraph


Law Decoded: Cents and stability, Nov. 20–27

Editor’s note

As many of you were certainly following in real time, a bull market gave way to a bloodbath yesterday, which happened to be Thanksgiving in the United States. Personally, I’ve never thought that Bitcoin’s (BTC) price was any sort of proof of its value proposition, but for many, its retreat yesterday certainly dashed many a planned gloat to family members more receptive to massive gains than concepts like censorship resistance.

But obviously, volatility is part of the game with cryptocurrencies. One of the more prominent solutions to this problem has been the rise of stablecoins, especially following the market’s swan dive at the beginning of 2018. Stablecoins typically derive their value from fiat reserves held at banks or — in the case of, say, Paxos Gold (PAGX) — in vaults.