Crypto Academy Week 7-Homework Post for @yohan2on

Hello lovely steemians, I am much delighted to be part of this noble community. I am also glad to take part in this week's homework by our noble professor @yohan2on.

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To start with, As we all know in our previous lectures, stable coins crypto currencies that remains stable in value against a pegged assets. That is, their aimed at creating a stable and reliable environment. They also have a so many positive effect in the crypto world.

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With regards to this week’s homework, I am going to talk about the USD coin (USDC). The USD coin is a stable coin that is joined or hooked up with the United States Dollar. The sole aim is to keep the price of the United States Dollar stable at one US Dollar.

The USD coin was announced in May 2018 launched in September 2018 by a consortium called centre. It is an Ethereum based stable coin. The founders of the USD coin are: Circle, a bitcoin mining company called Bitmain and a crypto currency exchange called Coinbase.

For one to able to get one USD coin token is very simple, all you just need is to transfer the USD to the token issuer’s bank account. The issuer then uses an Ethereum Request for Comment (ERC) 20 smart contract to produce an equivalent amount of USD coin. Then the issuer transfers it back to you. The replaced US Dollars are held in reserve. This shows that every USD coin is sponsored by a US Dollar.

Here are the steps in buying a USD coin

• Log in to your Coinbase account.

Here is a screenshot of my coinbase home page

*Turn to the USDC page on the Coinbase website.

*On the right hand side of the page, enter the amount of USDC you wish to purchase.

*Select your payment method and click “Preview Purchase.”

*Confirm your order details and click “Buy Now.”

What USD coin does importantly is keeping US dollars safe and putting them on the blockchain. By this doing is makes the US dollars very easy to be transferred and can be moved anywhere in the world very quick not as compared to the current slow nature of the US dollar.

Most traders and investors prefer the USD coins to other due to some reasons, some of them are:

*The main reason is to fence against excitability during market dips; that is during situations where the market swings to a bad side maybe when stocks falls so much. With the USD coin it will be able to hedge against any volatility in such situation this makes preferable to the other stable coins.

• Another reason USD coin is preferred to the others is that, when investors or traders are selling any crypto, and their funds are on kept on the platform ready for the next pay, they don’t have to pay any fees for fiat on and off ramps.

These and many more are the reasons most investors prefer the USD coin.

I hope with my view on the USD coin will be enough to educate some people and will also be considered when our noble professor @yohan2on is checking others.

Thank you for reading.