Homework Task in Steemit Crypto Academy week 7 by Professor @yohan2on | USD Coin (USDC)

USD COIN

Source

USD Coin is a digital stable coin that is pegged to the United States Dollar and progresses on the Ethereum Blockchain and the Algorand blockchain. It is important to note that, it showcases a major breakthrough in digital dollars and how it works. Just like any other digital currency, it move at the speed of the internet. Stable coins come into place generally by conscious effort of difference company to create a cryptocurrency token that is peg with a fiat currency. The stability in this coin is also achieved by pegging them to traditional assets like gold. Overtime, stable coins has become the ever ready option chosen by people for retails and institutional cryptocurrency use and the process of turning US dollars into USDC token is called tokenization.

HISTORY OF USD COIN

The coin is found by Circle Consortium called Center and Cryptocurrency Exchange CoinBase and bitcoin under bitcoin company incurred. USDC was announced on the 15th of May 2015 by Circle and launched In September 2018. Each USDC is backed up by a dollar held in reserve. Recently, the use of stable coins has been on the high side ,the fast rising stable coin founded by circle has shown rich significance among the cryptocurrency. USDC are issued by regulated and licenced financial institution that maintains full reserves of the equivalent fiat currency using the 1USDC:1 USD ratio meaning that one USDC stable coin can be exchanged with one unit of USD currency. The main aim is to back the stable coin by a real fiat, reducing cumbersome strategies and making it as simple as possible

USDC AS A DIGITAL ASSET

USD COIN are digital assets which remains constant and retains value even by pegged traditional assets. The aimof this coin is to reduce price volatiliy greatly in cryptocurrency and this achieved by backing it's value against traditional assets. Majority of the public recognizes fiat-backed stable coin as a more welcoming digital currency and this is because the prices doesn't fluctuate like other cryptocurrency today.

The investors of stable coins earn their profit by the rising dividends from digital coins newly created which are handed to them for holding such stable coin.

IT CREATES A RELIABLE TRADING ENVIRONMENT

In order to increase the acceptability of the cryptocurrency, it offers a suitable and realizable environment and also security of crypto in proportion to fiat's currency stability. Since Fiat is quite stable, USDC is also assumed to be of low volatile.

WORLDWIDE ACCEPTANCE

Globally, it is recognized as the best solution provider to the world's international transactions and this is because, transactions between countries are more efficient, affordable and very fast in transaction compared to conventional western union or traditional method. Stable coin like USDC has this quality.

TRADING WITH USDC ARE SECURED

Stable coins also help traders to reduce losses. In a volatile market, traders have the advantage of protections their crypto position by flipping bitcoin, Ethereum etc into stable coin within a second and also by increasing the worth by steeping in and out of the market using stable coins without turning them to fiat currency.

FUTURE OF USDC

It is a new form of digital currency, which is controlled algorithmically and offers monetary benefits such as fiat currencies. There's the possibility of future increase to the adoption of digital assets in our everyday lives although, it may take a while to achieved, nevertheless, the digital space awaits it's rise.

In conclusion USDC is one of the stable coin to look out for in the nearest future.

This is my homework professor @yohan2on

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