A stablecoin is a cryptocurrency designed to keep a steady value, usually by being backed by a real asset like dollars or gold stored in a bank. Because most cryptocurrencies go up and down in price a lot, stablecoins aim to solve this problem by staying worth roughly the same amount over time.
A stablecoin might always be worth one dollar because for every stablecoin created, one dollar is held in a bank account. So if you own 100 of these stablecoins, they should always be worth about 100 dollars, even if Bitcoin's price drops.
Greater Fool is a free Chrome extension that explains terms like this in place. Highlight a word on any page, click Explain, keep reading.
Add to Chrome (free)