Bitcoin's wild fluctuations, while stablecoins remain motionless? Let's talk about the fundamental differences between these two major players.

When I first entered the space, I often confused Bitcoin and stablecoins. Later, I realized they are not even in the same league.

Bitcoin is more like 'digital gold,' something to hoard, to speculate on, with prices that make your heart race during big swings. On the other hand, stablecoins are essentially 'digital dollars.' You use them for transactions, transfers, arbitrage, DeFi mining, etc.; at its core, it is just a tool, with stability being its greatest significance.

The prices are completely different as well. Bitcoin has a constantly dancing price that can rise by two thousand today and drop by one thousand tomorrow, which is perfectly normal; but stablecoins are pegged to 1 dollar, theoretically always worth 1 dollar (of course, exceptions like Terra that collapsed are another story).

The risk factors are not even on the same channel. The risk of Bitcoin comes from the market; a wave of selling can lead to significant losses; the risk of stablecoins is more about 'trust issues' – is there real currency backing them? Is the issuing company reliable? This has been a concern multiple times, and USDT is frequently scrutinized.

Another easily overlooked point: regulation. Bitcoin is too decentralized; no one can really 'control it.' But stablecoins are different; companies like Circle and Tether have corporate entities and are linked to bank accounts, which is why stablecoins have become a focus of regulatory scrutiny.

So stop confusing these two. One is an asset used to hedge against inflation and for long-term holding, while the other is the 'lubricant' that facilitates transactions in the crypto space.

In a nutshell: one attracts people with volatility, while the other survives on stability.