What is a stablecoin?

What is a stablecoin?

a) A cryptocurrency with a fixed supply
b) A cryptocurrency pegged to a stable asset like the US dollar
c) A volatile cryptocurrency
d) A cryptocurrency used only for staking

Answer:

b) A cryptocurrency pegged to a stable asset like the US dollar

Explanation:

A stablecoin is a type of cryptocurrency that is pegged to a stable asset, such as the US dollar, to reduce volatility and provide a stable store of value.

Reference:

Cryptocurrency Quiz – MCQ Questions and Answers

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