TERM: Stablecoin

Stablecoin

A cryptocurrency that has its price fixed, tied to either a fiat currency or asset. Some examples are USDT being tied to the price of the US dollar and DigiDAO being fixed to the price of gold.

Typically (hopefully) these cryptocurrencies are backed by the asset they're tied to.

EXAMPLE USAGE:

USDT, also known as Tether, is a stablecoin because 1 USDT is backed by 1 USD.

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James C.
Posted on July 12th, 2018
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