008. Stablecoin and Altcoin
(a). Stablecoin: A type of cryptocurrency designed to maintain a stable value relative to a fiat currency (e.g., USDT, USDC, DAI) and it is pegged to the value of a fiat currency, assets, commodity, or algorithmic mechanism aimed at reducing price volatility. This makes it suitable for:
- Payments
- Remittances
- E-commerce
- Hedging against market fluctuations
Some popular Examples include: USDT (Tether), USDC (USD Coin), DAI (Dai Stablecoin).
(b). Altcoin: Short for "Alternative Coin". It is any cryptocurrency that is not Bitcoin (BTC) and includes a wide range of cryptocurrencies with varying features, uses, and consensus algorithms ("to be covered later")
Examples of altcoins include: Ethereum ($ETH ), Litecoin (LTC), Monero (XMR), Dogecoin ($DOGE ), Ripple ($XRP ) and many more
Key differences:
1. Purpose: Stablecoins focus on stability, while altcoins often prioritize innovation, security, E-commerce, E-learning or specific use cases.
2. Volatility: Stablecoins aim to minimize price fluctuations, whereas altcoins can be more volatile.
3. Use cases: Stablecoins are suitable for everyday transactions, while altcoins might be used for specific applications, like smart contracts("to be covered") (such as on Ethereum) or privacy (on Monero).
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