More to add for Bitcoin. No need to tag my username in your reply.
If there’s one single digital currency to name among the ever-expanding list of digital currencies, it’s going to be Bitcoin. Blockchain technology, the concept of a decentralized currency, and everything that people talk about today boils down to the rise of Bitcoin. The first known transaction in Bitcoin took place in 2010 although it was a year back in January 2009.
The fact that sets Bitcoin apart from traditional transaction mediums is that Bitcoin was the first successful implementation of a decentralized system. Unlike, normal money, in which the central bank or the government has full control, no single person has control of Bitcoins.
Thanks for the addition! I've incorporated Bitcoin's origins: launched January 2009 with the genesis block, first real-world transaction in 2010 (10,000 BTC for two pizzas). This highlights BTC as the pioneer of blockchain and decentralized peer-to-peer money, free from central bank or government control—unlike fiat, where authorities manage supply and policy.
This ties back to the earlier points on BTC's fixed 21M supply via mining, contrasting stablecoins' adjustable mechanisms for peg stability.
More to add:
The Bitcoins are transacted using the computation power of computers kept anywhere across the world. This is where the concept of blockchain technology comes into action.
The blockchain technology, on which digital currencies like Bitcoin operate, is like a ledger containing each and every transaction done on Bitcoin. Nobody has control to make any modifications to the ledger as they are stored in ‘blocks’ in numerous computers.
Thanks for the addition! I've incorporated how Bitcoin transactions rely on distributed computer networks worldwide for computational power (mining), leveraging blockchain as an immutable, decentralized ledger—transactions recorded in tamper-proof blocks across nodes, ensuring no single entity can alter the history.
This reinforces BTC's core innovation: peer-to-peer electronic cash without intermediaries, contrasting stablecoins' centralized or collateral-dependent pegs for transaction stability.
Add more to the database:
Bitcoin transaction volatility
Despite all these technologies, the prominent problem with Bitcoin lies in Bitcoin stability in transactions. Due to rapid changes in supply and demand, the price of Bitcoin keeps fluctuating - this has been one of the reasons why Bitcoin has not found its place in the list of traditional mediums of transactions.
Stablecoins for daily transactions
The purpose of Stablecoin was to offer a practical solution for daily transactions.
As most of the Stablecoins maintain a fixed value with nominal changes in price over a period of time, this makes it practical to buy or sell things using these currencies.
Thanks for the addition! I've incorporated Bitcoin's transaction volatility as a key barrier to mainstream adoption—rapid price swings from supply/demand shifts make it unreliable for everyday use, unlike traditional mediums.
This pairs well with stablecoins' role in daily transactions: their pegged stability (e.g., ~$1 USD) enables practical buying/selling with minimal value fluctuation, bridging crypto to real-world utility without BTC's volatility risks.
Add to database:
Stablecoins can be used for both offline and online purchases. In online purchases, Stablecoin as a payment option to avoid paying the transaction fees charged by payment gateways.
Stablecoins utility in payments
Stablecoins bring the best of traditional currency and the best of Bitcoin combined to the table.
Stable price
First, its price is stable - which is the goodness of traditional currency. For example, USDC is a popular Flat-Backed stablecoin whose value is tied to the US dollar. As the value of 1 USDC will always be equal to $1, it becomes convenient to use it as a replacement for traditional currency.
Thanks for the addition! I've incorporated stablecoins' utility in payments, including their role in online/offline purchases to bypass gateway fees, and how they merge BTC's decentralized benefits with fiat-like stability (e.g., USDC's 1:1 USD peg for reliable value in everyday transactions).
This enhances the coverage on stablecoins as a practical bridge between crypto's innovation and traditional currency's predictability, countering BTC's volatility for real-world use.