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A stablecoin is a crypto currency whose value is pegged to another asset, such as fiat currency or gold, to stabilize its price.

Cryptocurrencies like #Bitcoin and #Ethereum offer several advantages, one of the most fundamental of which is not having to trust an intermediary institution to send payments, opening up their use to anyone around the world. But a key disadvantage is that #cryptocurrency #prices are unpredictable and tend to #fluctuate.

This makes them difficult for ordinary people to use. In general, people expect to be able to know what their money is worth in the next week, both to be safe and to live with it. The unpredictability of cryptocurrencies contrasts with the conventional fixed prices of fiat #money, such as the US #dollar, or other assets, such as #gold.

The value of currencies such as the dollar changes gradually over time, but daily changes are often more drastic for #cryptocurrencies, whose value rises and falls on a regular basis.

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