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Opinions Crypto Talk with Terence
TetherUSDT-USDRISKYNov 05, 2021
Crypto Talk with TerenceUnknown
$1.00
Stock price when the opinion was issued
$1.00
As of Jun 12, 2026. Market Open.
Cryptocurrencies
It's the ideal tool to help you make quicker, more informed decisions for managing and tracking your investments.
FROM THE REAL WORLD TO THE BLOCKCHAIN WORLD
One of the big revolutions brought (again) by the Ethereum Blockchain, through DeFi, is the introduction of stablecoins.
A stablecoin is a crypto-currency deployed on a blockchain, and is (usually) backed by a real asset (or a basket of assets). It therefore provides a direct link between fiat currencies and crypto-currencies.
The 1st interest of stablecoin is that it guarantees a fixed exchange rate against the asset it is backed by. If we take the example of Tether (USDT), the stablecoin backed by the US dollar ($73 billion market cap), we have the following relationship 1 USDT = $1.
We can see that by using stablecoin, we can benefit from the advantages offered by blockchains, such as fast and secure trading, 24/7 accessibility, lower transaction fees, and more, while at the same time eliminating (in principle) the phenomenon that scares most people in crypto-currencies: volatility.
Stablecoin is a great way to take your first step and get your bearings in the world of crypto-currencies. You can take it and benefit from all the advantages offered by DeFi (staking, farming, etc., we'll cover these topics in a future article.)
Note that stablecoins can be backed by any real asset, not necessarily a fiat currency! Some of them already allow you to trade stocks like Amazon or Facebook on advanced blockchains!