Does the Dynamic Peg make BitBay a “stablecoin”?


Does the Dynamic Peg make BitBay a “stablecoin”?

In short, no.

Technically, a “stablecoin” is any cryptocurrency which uses a mechanism to stabilize its own value. However, this term has been heavily associated with Ethereum-based tokens, all which attempt to maintain equilibrium with the US Dollar, other fiat currencies, or assets.

BitBay’s Dynamic Peg is an entirely different animal.

  • It is not backed by ANY collateral, and there are no “reserves”.
  • It is not an Ethereum based (erc20) token, BAY has its own blockchain. :slight_smile:
  • It is not fixed to any specific price (such as the US Dollar), and is free to move (within limits) in accordance to stakers’ consensus.
  • It is a highly decentralized system.
  • Like Bitcoin, not one individual or entity is responsible for the facilitation and/or verification of transactions

Questions, comments, concerns? Please post them in the comments below!