With the passing of the Stablecoin Act and recent commentary from Custodia Bank CEO Caitlin Long on CNBC, the digital asset space is once again in the spotlight. But many people are still confused about the difference between Bitcoin and stablecoins. Let’s clarify.
What’s the Difference?
Bitcoin
Bitcoin is a decentralized digital asset. Often referred to as digital gold, it is scarce, censorship-resistant, and not controlled by any government or corporation.
- Fixed supply: only 21 million will ever exist
- Volatile: price fluctuates based on market demand
- Purpose: long-term store of value, hedge against inflation, and financial independence
Stablecoins
Stablecoins are digital tokens pegged to fiat currencies like the US Dollar. They are issued by centralized institutions and designed to maintain price stability.
- Pegged value: 1 stablecoin is typically equal to 1 USD
- Issued by: banks or private companies
- Purpose: trading, remittances, payments, and access to DeFi applications
What Caitlin Long Said on CNBC
In a CNBC interview on July 2, 2025, Caitlin Long made a key point:
“Stablecoins are an on-ramp to Bitcoin.”
She emphasized that regulated, bank-issued stablecoins are making it easier for institutions and everyday users to enter the digital asset ecosystem. As users become comfortable transacting with stablecoins, many begin to explore Bitcoin as a more powerful tool for long-term wealth preservation and personal financial control.
How They Work Together
FeatureBitcoinStablecoinsVolatilityHighLow (pegged to fiat currency)SupplyFixed (21 million)Flexible and demand-drivenIssuerDecentralized (no central issuer)Centralized (banks or companies)Use CaseLong-term value, investmentPayments, trading, stabilityRegulationLight regulatory frameworkIncreasing oversight under new laws
Conclusion
The Stablecoin Act is not about replacing Bitcoin. It is about creating a safe and regulated gateway into the world of digital finance. Stablecoins offer a convenient entry point. Bitcoin offers long-term value, ownership, and financial sovereignty.
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Bitcoin vs Stablecoins: Clearing the Confusion After the Stablecoin Act was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.