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RE: Steemit Crypto Academy week 6 - Stable coins

in SteemitCryptoAcademy • 5 years ago

Thanks for this wonderful lecture on stable coins.

Is the price stability of non collaterlized coins because of complex algorithm or because of
supply control?

Why crypto Collateralized coins need 2 more crypos as back up, why not one in huge quantity? Is it so because simultaneous price fluctuation of both is less likely?

Thanks.

5 years ago in SteemitCryptoAcademy by
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     5 years ago 

    Is the price stability of non collaterlized coins because of complex algorithm or because of
    supply control?

    It's both.

    Why crypto Collateralized coins need 2 more crypos as back up, why not one in huge quantity? Is it so because simultaneous price fluctuation of both is less likely?

    Crypto is generally volatile. Even relying on one major cryptocurrency like Bitcoin is not enough to back up a coin to ensure its stability. That's why Crypto collateralized coins need 2 Cryptocurrencies to back them and not just one.

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       5 years ago 

      Thank you.

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