Explain in one sentence: What exactly is a stablecoin, and how does it fundamentally differ from Bitcoin?

What is a stablecoin? How does it fundamentally differ from Bitcoin?

A stablecoin functions like a "digital dollar"—it is a cryptocurrency designed to maintain a stable value pegged to real-world currencies (such as the US dollar), typically achieved through reserves or algorithms to prevent wild price fluctuations. In contrast, Bitcoin resembles "digital gold," with its price subject to extreme volatility driven by market sentiment and no underlying mechanism to guarantee value stability. This represents their most fundamental distinction.