Why are Stablecoins important to the crypto ecosystem?

Now, so many people ask these questions about stablecoins, and while many can only see the least of its utility, there's a far bigger picture to its existence. Now, when I first heard the word stablecoin, I wasn't quite sure whether or not to buy the idea of a stable currency, because for starters, we live in a world where nothing is actually stable. The only problem with that thought is that I may have just looked at its structure way too narrowly to its actual size. You see, the aim is stability, this is relatively achieved in a much extensive space.

The first set of stablecoins that were launched into the system were centralized, this of course, created an impression, which only made it a trading pair on exchanges, since it was backed by the dollar right? But this has changed overtime, and we're seeing increasing utility pouring in value to the stablecoin market.

Decentralised Banking (FINANCE) Defi.

Defi has been able to deliver something more than impressive to the crypto ecosystem, it's like building a new phase of money management via developing sustainable infrastructures into streams of stable income. So we're looking at an economy drawing in value and redistributing it. While the world prints debt, Defi builds value, distributes value, rinses and repeats.

So if we quit the bluff and focus on this unit of account, how do they really stay valuable? Centralized stablecoins like Tether run a dollar reserve that supposedly back it, but what about Algos?

Algorithm stablecoins are a blessing in disguise, we're looking at a debt management system being built right in front of us. Crypto is a very delicate technology, yes, it's fully equipped to run the world's economy because it understands the system, builds around the system in an expanse of no one but the benefits of everyone.

Make Valuable

If you want to make something less valuable what do you do? Some may suggest talking bad about it, but that doesn't work out as planned. The easiest way to reduce a things market value is to dumb more of it in the market. When supply feeds demand and has more than enough flying around, its availability and easy access endangers its market value, but on the other hand, creating scarcity makes the item much more valuable, why?

Because many want it, few have it, and many are willing to pay more for it, simple!

There's a reason why companies talk more about their limited edition shits, or their limited supply products, than the rest. I mean certain products just get sold off without any attempt of public awareness or advertising, but when it comes to the rare products, there's a space for marketing and advertisements, it's a game theory.

Algo Structures

So algorithm stablecoins being built in this manner is fully functional, to handle the world's economy, because it can print and burn based upon market demand Vs the supply curve. There's no dumb shit liquidity injection done purely out of system greed to fill certain pockets, this are criminal activities happening under our noses, but algorithm stablecoins counters this system of fraud.

Stablecoins basically runs the support unit of crypto economy, because when you look at exchanges, trading pairs, decentralised banking, blockchain gaming, NFTs, all big sectors in one way or the other, fall back to stablecoin support. This is it's reserve currency, which by the way, is better built backed by a store of security, more about that in a future publication…