The same name says it, stablecoin, the intention for which they were created to serve as a refuge. That is, I have already defined what volatility is, and when volatility is present, one way to support investors' money is through these stable currencies. Example:

If you have 1000 hive, and each one is worth 0.3 dollars, that means you have 300 dollars. Volatility can cause that price to rise precipitously or drop equally. If it goes to 0.10 or 0.05 your capital will decrease considerably.

So, if you can foresee that for some reason the altcoin value is going to collapse, you can back up your capital in stablecoin, i.e. change those Hive to Hivedollars, and if the price drops a lot, you are not affected by the capital. Of course, this is in theory, because it has been seen that the value of stablecoin can also fall, but it is very rare that it is in a higher percentage than altcoin. That is, always look for a way to be in a value close to the dollar (in this case in question). This is the reason why in a certain way they can serve as refuge in some cases.

In a quite general way I can say that this is a STABLECOINS, that's the function of these.

I hope you all have been left with a little clarity or a better idea of what they are and their importance within the world of cryptomontages.

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