What is a Stablecoin?

Stablecoins are a kind of cryptocurrency whose price is pegged to a stable asset, like the U.S. dollar or gold.
One of the most fundamental advantages of cryptocurrencies such as bitcoin and ether is that they do not require trust in an intermediary institution to send payments, making them accessible worldwide. However, a significant disadvantage of cryptocurrencies is that their prices are unpredictable and tend to fluctuate wildly. This makes them difficult to use for the average person. People generally expect to be able to predict the value of their money a week from now for their security and livelihood.