Cryto Academy Week 7 - Homework Post for [@yohan2on] Stable coins - Part2
Thank you very much to the teacher @yohan2on for this week's class, grateful to the entire steemit community for the opportunity to develop myself through this platform and nurture my knowledge in cryptocurrencies, this is my presentation of the class of the week number # 7 about stable coins.
Stable coins.
We must understand that most cryptocurrencies fluctuate in price over time, that is, they are extremely volatile, if we take bitcoin for example, from its moment of creation to date, it has been constantly varying in price over time. , and that happens with most cryptocurrencies, and it is not uncommon to see fluctuations in price from 20% to 30% on the same day.
If we look at the full spectrum of cryptocurrencies, we can see that there are different currencies called stable coins, which are characterized by the fact that their value despite the passing of time and there are different fluctuations that somehow affect different currencies. , it will remain completely stable or fixed.
These currencies are mostly allied to a "FIAT" currency, this means that they have a 1: 1 parity to the value of a currency such as the dollar or the euro, therefore the value of a "USDT" is equivalent to the price of a dollar or to the capital to which it is affiliated.
Centralized and decentralized stable coins.
Stable coin Centralized:
This class of stable coins guarantees their stability, through the company that exists behind them and is the same one that issues those stable coins, for example, "TETHER" is the company behind the "USDT" and claims to have that for each token usdt that is circulating, is equivalent to one US dollar in the bank.
Decentralized stable coin:
In my opinion, decentralized stable coins are the ones with the greatest innovation in the market because behind these coins there is no bank or any company that guarantees stability, therefore they are guaranteed by a smart contract that handles the creation of these satable coins and the flow of supply and demand in the market.
¿What is a USD coin?.
the "USD coin" is considered a stable cryptocurrency that is backed by the US dollar. Each USDC is equivalent to 1 USD and can be exchanged for cash, the currency can also be sent to any account without any commission..
The USD coins are currently one of the most important stable coins in the market, apart from being backed by the US dollar in a 1: 1 ratio, it is really simple to exchange between the 2 currencies therefore it provides the stability that others digital currencies do not have.
Cc: -
Hi
Thanks for attending the 7th -Crypto course on stable coins and for your effort in doing the given homework task.
Feedback
You have not answered the homework task. You were required to write about any of the following stable coins;
TUSD, DGX, PAX, USDC.
Homework task
1
Thank you teacher @yohan2on for the time you take to review my homework, at the end of my work I talked about the USDC, I should have delved more about the currency, if you gave me the opportunity to add more content to my article to improve my grade I would appreciate it, I am enormously committed to your classes, and I would appreciate it if you would give me the great opportunity to make amends for my failure. many greetings and blessings, thank you for your time.