WHAT IS A STABLE COIN? S tablecoins are digital assets whose value is linked to the value of another money, commodity, or financial instrument. Stablecoins are designed to be an alternative to the excessive volatility of the most popular cryptocurrencies, such as Bitcoin (BTC), which has made such investments unsuitable for widespread use in transactions. Stablecoins are cryptocurrencies that try to tie their market value to something outside of themselves. As a medium of exchange, stablecoins are more helpful than more volatile cryptocurrencies. Stablecoins can be linked to a currency like the US dollar or a commodity price like gold. Stablecoins aim for price stability by using reserve assets as security or supply-controlling computational formulae. Stablecoins come in a variety of shapes and sizes. Given the widespread availability and acceptability of the US dollar, some believe that stablecoins are a problem in search of a solution. Many cryptocurrency supp...
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