What Are Bitcoin and Stablecoin

What is Bitcoin?

Bitcoin (BTC), dubbed "digital gold" by investors, is currently the most widely used digital currency. It was created on January 3, 2009, as a digital cryptocurrency for peer-to-peer (P2P) transmission, with a total of 21 million pieces. The Bitcoin network releases a certain number of coins every 10 minutes. The last bitcoin is expected to be mined sometime around 2140.

Bitcoin is produced through an extensive amount of computational work according to a particular algorithm. It uses peer-to-peer technology with no monetary authority involved; all transaction data are confirmed and recorded in the distributed database constituted by numerous nodes in the whole P2P network. Cryptography is applied to secure all aspects of Bitcoin circulation and ensure that no one can manipulate Bitcoin price through mass production. While providing anonymity of asset ownership and crypto transactions, this technology also ensures that only the real owner can conduct Bitcoin transfers, payments, and trading. 


What is Stablecoin?

Literally, Stablecoin is a cryptocurrency whose value is tied to another currency. Since cryptocurrency is highly volatile in its price, stablecoin is designed as a medium of exchange, effectively bridging the gap between fiat and cryptocurrency. Some common stablecoins include USDT, USDC, and DAI.

Among them, USDT is the most popular and most widely used. Launched by Tether, it is pegged against the U.S. dollar and backed 100% by Tether’s reserves. Tether promises that holders can exchange between USDT and USD at a 1:1 ratio, making it an excellent alternative in the highly volatile crypto market. As a cryptocurrency with relatively stable value, stablecoin provides users with full protection in terms of both asset experience and asset security.