<p>It's entirely possible, but no one would invest in such a coin because the return on investment would be predictable and low, and the value itself would be subject to manipulation by the creator. You are basically describing how a Federal Reserve works, and a cryptocurrency that acted like a Fed is useless. </p>

<p>Also, nothing in the blockchain indicates price, so you'd have to source price from an exchange. Each exchange price varies, so it's arbitrary and gameable which exchange is picked. </p>

CC BY-SA 4.0
2020-01-15T03:11:46.973Z
Actually, in my opinion, cryptocurrencies aren't just for *investments*. The future of cryptocurrencies as being a *currency* depends on stability, which is why I asked this  question.
Andrew
CC BY-SA 4.0
2020-01-15T04:10:45.583Z
Adoption happens through investment though. And even so, such a cryptocurrency, if already dominant would slowly lose trust as politicians and Economists manipulated the supply algo. A fairly supplied crypto (BTC) would emerge and supplant it. But regardless, such a currency wont win adoption due to lack of investment
Sachin Meier
CC BY-SA 4.0
2020-01-15T02:57:15.643Z
2020-01-15T02:57:15.643Z
Sachin Meier
<p>Is it possible that a cryptocurrency can be <strong>stable</strong>, <strong>without</strong> being backed by another currency, for example stable by algorithm?</p>

<p>For example, when the value is too high, the algorithm will increased the number of new tokens created, or when the value is too low, the algorithm will decrease  the number of new tokens created. </p>

<p>I would appreciate your help. Thanks. </p>

CC BY-SA 4.0
2020-01-14T15:25:02.070Z
This is a vague question and makes a lot of assumptions, can you provide more details? Price is determined by exchanges on the market, which consists of people, are you suggesting the people are controlled by an algorithm?
JBaczuk
<price-volatility>
How can non-backed cryptocurrencies be stable (like by algorithm)
Andrew
# How can non-backed cryptocurrencies be stable (like by algorithm)

(Asked by: username_0 on 2020-01-14)

Is it possible that a cryptocurrency can be **stable**, **without** being backed by another currency, for example stable by algorithm?

For example, when the value is too high, the algorithm will increased the number of new tokens created, or when the value is too low, the algorithm will decrease the number of new tokens created.

I would appreciate your help. Thanks.

**Tags:** price-volatility

> **Comments:**
> **username_1**: This is a vague question and makes a lot of assumptions, can you provide more details? Price is determined by exchanges on the market, which consists of people, are you suggesting the people are controlled by an algorithm?  

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## 1 answers

### Answer by username_2 on 2020-01-15. Score: 1 | Accepted answer

It's entirely possible, but no one would invest in such a coin because the return on investment would be predictable and low, and the value itself would be subject to manipulation by the creator. You are basically describing how a Federal Reserve works, and a cryptocurrency that acted like a Fed is useless.

Also, nothing in the blockchain indicates price, so you'd have to source price from an exchange. Each exchange price varies, so it's arbitrary and gameable which exchange is picked.

> **Comments:**
> **username_0**: Actually, in my opinion, cryptocurrencies aren't just for *investments*. The future of cryptocurrencies as being a *currency* depends on stability, which is why I asked this  question.  
> **username_2**: Adoption happens through investment though. And even so, such a cryptocurrency, if already dominant would slowly lose trust as politicians and Economists manipulated the supply algo. A fairly supplied crypto (BTC) would emerge and supplant it. But regardless, such a currency wont win adoption due to lack of investment  

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