Steemit Crypto Academy week 6 - Stable coins For @yohan2on by @endersontowers
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A stable currency is a currency that is created to have a stable value such as fiat currencies but without the fear of devaluation, these are not volatile like the current cryptocurrencies of today such as bitcoin, ethereum etc. This type of currency provides the client with relief when carrying out any operation since they do not have to worry about its volatility. Its stable value may be subject to the value of a fiat currency, other goods that have strong market demand, such as gold. Currently you can choose 4 stablecoins that exist in the market for your investment, Tether (USDT), USDCoin (USDC), TrueUSD (TUSD), DAI. In this case we will talk about the Tether (USDT).
Tether (USDT)
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Tether (USDT), is a centralized digital stable currency, founded by the company Homonima in 2014, it was designed to convert to the equivalent value of the US dollar in a cryptographic way 1USD is 1 token USDT. The Tether market is transparent since the volume of its reservations are published daily, this platform is built on open blockchain technologies, for this reason they offer security and transparency, it was created so that large and small investors can protect their assets so that they are not at risk of devaluation since tether is not volatile.
In 2017 Tether additionally launched ERC-20 tokens for US dollars and euros on the Ethereum blockchain and in 2019 it launched another token taking the yuan as currency and therefore tether is found in the two largest blockchains today ( bitcoin and ethereum), the USDT market accounts for about 80% of all Bitcoin trade in the world.
Why is this currency created if it is worth the same as a US dollar?
It has no limit amounts when making transfers, since it is a cryptocurrency and has all the benefits of a cryptocurrency, it also maintains volatility in the exchanges. Its operation is based on the omni protocol, which means that this currency acquires the properties of the tokens of said blockchain and benefits from it for the issuance and exchange of tokens. One very important thing is that the tether website lets us know that tether is not a cryptocurrency that you can use as money since it is not backed and that is why the company cannot guarantee the transactions of the tokens, it throws this statement since Several years ago there was some controversy between tether and single-state newspapers that the company did not have the equivalent in dollars to 100% of its currencies, and this changed its opening phrase to that tether is backed by dollars, Fiat currencies and other types of reserves, many speculate that they have a certain percentage of coins invested in bitcoin but no one is clear about it.
As the company is centralized, it wants to attract the customer's attention by placing the value of 1 dollar for 1 USDT.
Users prefer to use Tether because of the speed it offers to carry out their operations, whether to send remittances, buy etc., and apart from this it offers us a very low cost for transactions.
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For its part, Tether gold is basically the same only that each token is worth the equivalent of one ounce of pure gold, or the equivalent of 31.10 grams.
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Finally, I want to comment that I love this type of topic, I have followed your class for several weeks and I want to congratulate you on the topics that you throw, they are very good. Speaking of Tether I want to point out that this currency is very good for external uses either to pay for goods, services and for digital exchanges since it has good characteristics that it represents and above all reliability but it is not too much to be very cautious, in Venezuela it would be A stable currency helps a lot because it would end the inflation that exists, but it would be left with a big problem of corruption.
Thank you very much teacher
@yohan2on
@steemcurator01
@steemcurator02
Hi @endersontowers
Thanks for attending the 6th Crypto course and for your effort in doing the given homework task.
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This is good work. Well done with your research work on Tether.
This is such a great aspect about Tether. It has an already established name and record over the years. Has stood the test of time. Many stable coins are emulating from it. As Bitcoin is believed to the mother(origin) of all Cryptocurrencies, Tether should also be the mother(origin) of all other stable coins. "A pace setter."
Homework task
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thank you very much @yohan2on, grateful to you