A crypto term a day, keeps the doctor away: Stablecoin A stablecoin is a new class of cryptocurrencies that attempts to offer price stability and are backed by a reserve asset. Stablecoins have gained traction as they attempt to offer the best of both worlds—the instant processing and security or privacy of payments of cryptocurrencies, and the volatility-free stable valuations of fiat currencies. These can be Fiat-Collateralized (1:1 USD), Crypto-Collateralized (Backed by other cryptos) or Non-Collateralized (algorithmic). An example of Fiat-Collateralized which is used everywhere is USDT.
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"1:1 USD" *Laughs in USDT* 😉😂