Cryptocurrencies backed by stable fiat currencies, like the U.S. dollar, made huge waves earlier this summer.
They're called "stablecoins," and they're a way to potentially blunt the notorious volatility of cryptocurrencies – an issue that profoundly affects the viability of using crypto as an "everyday" medium of exchange. You wouldn't want to draw a paycheck in crypto, for instance, or even buy a gallon of milk with it, because the value gyrates wildly almost by the hour.
Stablecoins make an end run around that problem. Even better, they provide a way for regular investors to hop in and out of crypto positions with little "friction" and take full advantage of the "good stuff" cryptos have to offer: international acceptance, ease of use, security, and privacy.
They're outrageously popular, too. For a time this summer, before its well-publicized troubles, Tether did more daily volume than the greenback.
Now stablecoins are coming back – the right way. And they're doing it all aboveboard, in the light of day, with some serious backing and the OK of U.S. regulators.
That's great news for folks who want to invest or use more crypto in their day-to-day. But it could be even better news for folks holding one coin in particular...