Crypto Academy Week 6 Homework Post for @yohan2on | Part 1

Hey Steemians ,

In this post , I am here to submit my Homework task 6 which I have carried out as required by @yohan2on crypto professor.

Write about any one of the following stable coins;

• Tether(USDT)
• Steem backed dollar(SBD)
• DAI

^{Image Source}

Stable Coins

Stable coins are a type of coins that are actually crypto currency. But their value/price remains fixed that means it doesn't fluctuate. The good advantage of Stable Coins is that they work in instant time. We have to pay a fixed amount for this, which also reduces our risks.

For example, Let's assume that we trade Crypto currency such as STEEM, BTC, TRX every day. So their price sometimes goes up or sometimes down. And their value always fluctuates up or down. But there is no change in the price of Stable Coins. Ex. Tether , DAI , Paxos

Let's have a look at the pair of BTC / USDT : Here both coins are cryptocurrency and USDT is stable coin whose value will always be 1 US Dollar.

For the purpose of price stability, the price of stable coins is pegged to other assets/stable assets Which can be fiat currencies, can be US$ or can be real world assets like gold, silver. We can also buy, sell and trade Stable Coins like other crypto currencies.

Stable Coins are classified in different categories.

• Fiat-Collateralized Stable Coins
• Crypto-Collateralized Stable Coins
• Commodity-Collateralized Stable Coins
• Non-Collateralized Stable Coins

^{Image Source}

^{Now Back to the Question!}

What is Tether?

Tether is a stable coin which is one of the world's well known and popular Stable Coins. The value of tether is always the same with US dollar. That means 1 Tether = 1 US Dollar . Tether is a fiat money backed Crypto currency. It comes under the Fiat-Collateralized Stable Coins category.

The ticker symbol of the tether is USDT. And it depends on the US Dollar. As its value same as US Dollar, if you have 500 USDT then its value is equal to $500. Generally , The value of the Tether mirrors the dollar . We can trade it , transfer between the exchanges easily.

Who created it and Why?

Tether was founded in 2014 by Brock Pierce, Reeve Collins, and Craig Sellars , issued by Tether Limited . The main purpose of its founders behind creating this was that they wanted to make a stable coin that could be easily pegged in fiat currency. And traders should be able to trade easily. Because of this there is very less risk of your crypto currency's value being reduced.

The creators made Tether because they knew that Crypto Currency is the future. People should not have much trouble in trading it. Currently, many exchanges use Tether Coin to trade other Crypto Currency such as BTC, XRP, etc. There are many pairs such as ETH/USDT, BTC/USDT, XRP/USDT, LTC/USDT etc. In all of these, USDT is a stable coin.

^{Let's learn a little more about Tether}

Tether Price/Value

^{https://www.coingecko.com/en/coins/tether}

Tether is a stable coin . As I have mentioned above. And the price of Tether is always the same as 1 US Dollar. In the image above, you can see. The price of Tether is also shown in BTC and ETH.

24h Market Vol./24h high/low

^{As on 15/03/2021 | https://www.coingecko.com/en/coins/tether}

Tether Chart

^{As on 15/03/2021 | https://www.coingecko.com/en/coins/tether}

The image above shows a 24-hour chart of Tether. You can also check the chart of 7d, 14d, 30d, 1y. Also You can check the chart in BTC / ETH . This chart shows the Market conditions of Tether.

Tether Price & Market Stats

^{https://www.coingecko.com/en/coins/tether}

In the above image, the market states of Tether are shown like All time high ( $ 1.32 ) , All time low ( $ 0.5725 ) , 24 hour high & 24 hour low , Volume/Market Cap. , Trading volume , Rank etc.

Merits of Tether

• We can easily convert Tether into fiat money on the basis of Us Dollar.
• Its price is stable which is equal to 1 US Dollar.
• As its value is equal to 1 dollar, to buy it, we have to pay only a specific amount.
• Tether can be easily changed on any exchange at any time.
• There are no few chances in which your value becomes zero like other cryptocurrency . Since it is a stable coin.
• We can easily buy, sell on any exchange and aslo transfer it between any exchanges.

Demerits of Tether

• There are many exchanges that do not allow USDT pair with other Crypto Currency. For example , In Binance we have only two pair ; STEEM/BTC and STEEM/ETH , of Steem while USDT pair is not allowed.
• Last year, Tether was described as a scam, which has now become a controversial crypto currency.
• Tether has been hacked before and has lost about $ 30 million.

Cc:-
@steemitblog
@steemcurator01
@steemcurator02
@yohan2on

Thank You