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TOP 5 THINGS TO KNOW ABOUT STABLECOINS

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by Tom Merritt in Innovation
on May 25, 2022, 12:39 PM PDT


TOP 5 THINGS TO KNOW ABOUT STABLECOINS

Tom Merritt shares the most important information you need to remember about
stablecoin cryptocurrencies.

You may have heard of stablecoins and thought it sounded like a good idea. After
all, most cryptocurrencies are quite volatile, so why not have one meant to be
stable?

You may also have heard of stablecoins crashing and wondered: Well, how did that
happen? I thought they were supposed to be stable?

Listen to the podcast version of this Top 5 episode on SoundCloud

Here are five things to know about stablecoins.


1. STABLECOINS ARE OFTEN EQUATED TO U.S. DOLLARS.

Many stablecoins are tied to the U.S. dollar in such a way that the issuer
promises to always exchange one coin for one dollar.


2. STABLECOINS CAN BE BACKED BY MANY THINGS – NOT JUST U.S. DOLLARS.

Some stablecoins are tied to other stable reserves like gold. They might also be
tied to an algorithm that manipulates the supply to keep it pegged at a
particular value.


3. STABLECOINS DON’T HAVE TO BE BACKED BY ANYTHING.

There’s no regulation about what gets to be labeled a stablecoin. The Terra
stablecoin was backed by another cryptocurrency called Luna which was tied to
reserves of a lot of other cryptocurrencies. It was one that used an algorithm
to try to hold its value. That algorithm eventually failed.


4. EVEN STABLECOINS BACKED BY DOLLARS AREN’T ACTUALLY BACKED BY DOLLARS.

A stablecoin called Tether uses a mix of corporate debt, cash and treasury
bills. The idea is to have some holdings that can be liquidated fast when needed
but also appreciate in value.


5. STABLECOINS ARE USEFUL FOR MONEY TRANSFERS.

While Bitcoin can be relatively slow and Ethereum can have high fees, when
stablecoins are actually stable, they can conduct transfers much faster and
cheaper than the traditional banking system.

Just because it has stable in the name, doesn’t mean it’s entirely stable.
Caveat emptor has never applied so well.

Subscribe to TechRepublic Top 5 on YouTube for all the latest tech advice for
business pros from Tom Merritt. 


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Published:  May 25, 2022, 12:39 PM PDT Modified:  June 10, 2022, 1:09 PM PDT See
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By Tom Merritt
Tom is an award-winning independent tech podcaster and host of regular tech news
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   TECHREPUBLIC PREMIUM EDITORIAL CALENDAR: IT POLICIES, CHECKLISTS, TOOLKITS,
   AND RESEARCH FOR DOWNLOAD
   
   TechRepublic Premium content helps you solve your toughest IT issues and
   jump-start your career or next project.
   
   TechRepublic Staff
   Published:  May 30, 2022, 9:30 AM PDT Modified:  May 31, 2022, 5:32 AM PDT
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   Security
   
   
   PENTAGON FINDS CONCERNING VULNERABILITIES ON BLOCKCHAIN
   
   A new report reveals that blockchain is neither decentralized nor updated.
   
   Ray Fernandez
   Published:  June 28, 2022, 3:08 PM PDT Modified:  June 29, 2022, 6:34 AM PDT
   Read More See more Security
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   Developer
   
   
   THE 12 BEST IDES FOR PROGRAMMING
   
   IDEs are essential tools for software development. Here is a list of the top
   IDEs for programming in 2022.
   
   Franklin Okeke
   Published:  July 7, 2022, 7:48 AM PDT Modified:  July 11, 2022, 6:52 AM PDT
   Read More See more Developer
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   Software
   
   
   BEST AGILE PROJECT MANAGEMENT SOFTWARE FOR 2022
   
   With so many agile project management tools available, it can be overwhelming
   to find the best fit for you. We've compiled a list of ten tools you can use
   to take advantage of agile within your organization.
   
   Brenna Miles
   Published:  June 28, 2022, 6:19 AM PDT Modified:  July 5, 2022, 10:57 AM PDT
   Read More See more Software
 * Apple announced iOS 16 on June 6, 2022 during the WWDC keynote. Image: Apple
   Mobility
   
   
   IOS 16 CHEAT SHEET: COMPLETE GUIDE FOR 2022
   
   Learn about the new features available with iOS 16, and how to download and
   install the latest version of Apple’s mobile operating system.
   
   Cory Bohon
   Published:  July 12, 2022, 10:00 AM PDT Modified:  July 12, 2022, 2:36 PM PDT
   Read More See more Mobility
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   Artificial Intelligence
   
   
   COURSERA RELEASES UPDATED MACHINE LEARNING SPECIALIZATION COURSE
   
   The online learning platform’s new course teaches the fundamentals of ML with
   less emphasis on math.
   
   Marc Librescu
   Published:  July 5, 2022, 9:29 AM PDT Modified:  July 11, 2022, 12:16 AM PDT
   Read More See more Artificial Intelligence




TECHREPUBLIC PREMIUM

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   INDUSTRIAL INTERNET OF THINGS: SOFTWARE COMPARISON TOOL
   
   IIoT software assists manufacturers and other industrial operations with
   configuring, managing and monitoring connected devices. A good IoT solution
   requires capabilities ranging from designing and delivering connected
   products to collecting and analyzing system data once in the field. Each IIoT
   use case has its own diverse set of requirements, but there are key
   capabilities and ...
   
   Downloads
   Provided By TechRepublic Premium Published:  May 2022 Modified:  May 2022
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 * TechRepublic Premium
   
   
   HOW TO RECRUIT AND HIRE AN OPERATIONS RESEARCH ANALYST
   
   Recruiting an Operations Research Analyst with the right combination of
   technical expertise and experience will require a comprehensive screening
   process. This Hiring Kit provides an adjustable framework your business can
   use to find, recruit and ultimately hire the right person for the job.This
   hiring kit from TechRepublic Premium includes a job description, sample
   interview questions ...
   
   Downloads
   Provided By TechRepublic Premium Published:  May 2022 Modified:  May 2022
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 * TechRepublic Premium
   
   
   QUICK GLOSSARY: INDUSTRIAL INTERNET OF THINGS
   
   The digital transformation required by implementing the industrial Internet
   of Things (IIoT) is a radical change from business as usual. This quick
   glossary of 30 terms and concepts relating to IIoT will help you get a handle
   on what IIoT is and what it can do for your business.. From the glossary’s
   introduction: While the ...
   
   Downloads
   Provided By TechRepublic Premium Published:  May 2022 Modified:  May 2022
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 * TechRepublic Premium
   
   
   SOFTWARE PROCUREMENT POLICY
   
   Procuring software packages for an organization is a complicated process that
   involves more than just technological knowledge. There are financial and
   support aspects to consider, proof of concepts to evaluate and vendor
   negotiations to handle. Navigating through the details of an RFP alone can be
   challenging, so use TechRepublic Premium’s Software Procurement Policy to
   establish ...
   
   Provided By TechRepublic Premium Published:  Apr 2022 Modified:  Apr 2022
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