Crypto Academy Week 7 Homework Post for @yohan2on | Part 2

Hey Steemians ,

In this post , I am here to submit my Homework task 7 which I have carried out as required by @yohan2on crypto professor.

Write about any one of the following Stable coins :

• USD Coin ( USDC )
• TrueUSD (TUSD)
• Paxos Standard (PAX)
• Digix (DGX)

^{Image Source}

Before knowing about any Stable Coin ( Tether , Paxos , USDC ) , we need to know what exactly are Stable Coins. However, this is the second part of stable coins. So I have explained them in the first part of my post.

^{Here is the link to my post.}

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

Why should we use Stable Coins?

Let's assume that we trade with steem. And we have 100 steem in our wallet. And the price of Steem is currently INR 40. And we are trading through Binance exchange. Binance allows only STEEM/BTC & STEEM/ETH pairs . So that means , The price of a steem is INR 40 = 0.00000982 BTC | 100 Steem = 0.00098200 BTC ( INR 4000 )

I sold Steem at the same price. Now I will wait for Steem to be down to buy it back. Because i want some profit. But if BTC goes down, I would be at a loss instead of a profit. So in this case , We will change BTC to stable coin i.e. USDT/USDC. So that our asset is not reduced. If we change our assets to USDT, then we will have some benefit in this situation.

^{Now Back to the Question}

What is USDC?

USDC is also known as USD Coin. USDC is a type of stable coin that is actually Crypto Currency but like other crypto currency, its value does not fluctuate. USDC is pegged to the US dollars. So it's value/price is always the same with USD. That means 1 USDC = 1 USD.

USD Coin comes under the Fiat-Collateralized Stable Coins category. And it is based on Ethereum Blockchain. It's price/value remains fixed. As we know that the price of USDC is always same as US Dollar, If you have 500 USDC then it's value is equal to $500.

Like other pairs on the exchange, there are many Crypto Currency pair with USDC.

Let's have a look at the pairs ; LTC/USDC , XRP/USDC , TRX/USDC , BTC/USTC . Here all coins in these pairs are crypto currency and USDC is a stable coin whose value will always be 1 US Dollar.

UsD Coin is centralized Stable Coin. Like other Crypto Currency, we can also easily buy, sell, transfer between two exchanges. In other words, USD Coin can be easily traded. It is available many exchanges. It is also mirrors US dollar same as Tether.

Who created it and why ?

USDC is created by consortium which is also called Center and founded by Circle and Coinbase. It was first released in partnership between Circle and Coinbase in 2018 after being developed by the center.

The main purpose behind making it was that its founders wanted to keep its price constant equal to 1 US Dollar. As it is developed by Ethereum Blockchain , It allows to use ERC20 smart contracts.

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

USDC Price/Value

^{https://www.coingecko.com/en/coins/usd-coin}

USD Coin is a stable coin. As I have mentioned, its price is always the same as 1 US Dollar. USDC's price is also shown in BTC & ETH in the above image.

24 Hour Market Vol. / 24h low & 24h High

^{As on 21/03/2021 | https://www.coingecko.com/en/coins/usd-coin}

The above image shows 24h trading vol , 24h low / 24h high , circulating supply , wallet , contracts etc. of USDC.

USDC Chart

^{As on 21/03/2021 | https://www.coingecko.com/en/coins/usd-coin}

The above image shows a 24-hour chart of USD Coin. You can also check the chart of 7d, 14d, 30d, 90d, 180d, 1y. You can alsocheck the chart in BTC / ETH . This chart shows the Market conditions of USD Coin.

^{For Example}

USDC Price & Market Stats

^{https://www.coingecko.com/en/coins/usd-coin}

In the above image, the market states of USDC are shown like All time high ( $ 1.17 ) , All time low ( $ 0.9241 ) , 24 hour high & 24 hour low , 7d low & 7d high, Volume/Market Cap. , Trading volume, Rank (#11) etc.

Where can we get USDC?

USDC is available on many exchanges. For Example : Binance , Huobi-pro , Coinbase , Poloniex . It has multiple pair with multiple Crypto Currency.

Merits of USDC

• USDC is based on the Ethereum Blockchain .
• We can trade it easily. It can be bought and sold easily.
• Since it is a stable coin , So there are no chances in which our assets becomes zero Or is very little loss.
• It can be stored in our personal Crypto Wallet.
• It works in instant time So that it can be exchanged at any time.
• To purchase USDC, we have to pay a specific amount same as US Dollar.

Demerits of USDC

• There are many exchanges that do not allow a pair of USDC with another crypto currency like Tether.
• The USDC is a new stable coin and is not the first. There are many stable coins like this which pegged to the USD. So many people believe in using old Stable Coins.
• In India, USDC is not used much and many people do not even know about it who is still new in the crypto world.

Conclusion

I think USDC is a good stable coin. And by the way, it is the second most popular and used stable coin after USDT. As I mented in the first part that Crypto Currency is the future. So we have to change ourselves. Till we do not support anyone, how will that proceed and grow further?

Cc:-
@steemitblog
@steemcurator01
@steemcurator02
@yohan2on

Thank You