Stability in Digital Currencies - Steemit Crypto Academy - S4W5 - Homework Post for @awesononso

in SteemitCryptoAcademy4 months ago (edited)

Hello sir, professor @awesononso for giving this great and wonderful lecture today, and I will like to thank the almighty God for giving me another opportunity to be able to see another day.

Explain why Stability is important in Digital currencies.

Stability is important in digital currencies because stability means is the state of being resistant to change or which is different to change or even if there is going to change it's not going to be hugged different in it an example is usdt is the same as the price of the asset in the real world.
and currency is a mediums of exchange of goods and services or its a money which is what we used to you transaction and crypto coin are normally decentralized system meaning it's not controlled by any body,
And digital currency is a currency, money, like asest which is control or stored or exchanged in the internet.

Difficulty to lose your money because most people have covered all their cryptocurrency in their binance into usdt because it a stable coin and that mean that if a coin is stable coin in the market is very difficult to lose your money and even if you are going to lose, so the probability of you loss is very high, so because it's a digital currency, it attract many people to start buying those stable coins because they know at the end of the day they won’t lose but, and with the help of the stable coin the market will keep growing at a faster rates

Trading a stable coin is always easier because you can decide to buy or sell a stable coin and still get back and the market price is always resistant to changes, it's very easier to get the coin back whenever you sell it or buy it.

It’s a stability of digital currency because the price in the market is the same as that of the assets in the reaworld it will attract more people to purchase more of the stable coin leading to the growth of the stable coin in the market and many people will now have trust into it and many people will now involve into digital currency.

Do you think CBDCs would be good in the future? Weigh the pros and cons in your own understanding and state your position.

Central bank digital currency actually today is the first time I have ever heard it but central bank digital currency is a digital representation of a country currency and its digital currency is the same values as that of country currency it will help in the development of countries.

ADVANTAGE OF CBDCs

With the help of CBCs, many people won't be robbers since nobody won't be carrying hugged amount of money into the bank to save and deposit and it will also make sure that people are always safe.

CBDCs since it's a digital currency it's very easy to make transactions at a less cost and where in the physical bank where you need to have a bank account before you could receive money into your wallet and the charger is always higher but you can make a transaction.

CBDCs since is a digital currency the central bank help in the development of a country therefore it will create a link for countries.

DISADVANTAGE OF CBDCs

Since it's a digital currency and its own and control by the central bank means that it's controlled by the state so they can do whatever they want you to do and you can't go beyond your limits.

CBDCs mostly those in the village don't have access to the banks so they always find it difficult to make transaction and them to make any transaction they have to go the urban area by the time they reached there it will it be too Crowded there for them to make any transaction and with some who doesn't know anything about the internet can’t make any transaction because it involves a high level of education to be able to access the system.

Because there is not network in the rural area it will bring competition among banks in the urban area which will lead to lost of their consumers

from my observation looking at the pros of CBDCs and disadvantage of CBDCs, one can be able to tell you one is good or bad, and with that CBDCs can help in the development of a country,

Explain in your own words how Rebase Tokens work. Give an illustration.

Rebase Token is a special type of cryptocurrency, and it is rare in a way that the circulating token supply adjusts increases or decreases and when the rebase on the tokens price shift This is called Rebase mechanism and the supply of the token changes with the prices fluctuations is also called Elastic supply tokens.

Rebase token can just be like a stable coin because it’s has a different price desired result in a Rebase token when the price in the market increase stable coin inside your Binance wallet will also increase but when the price in the market decreases the coin inside your Binance wallet will also decrease but the value will still be the same

In Rebase token when the price increase the stable coin inside the user's wallet will also risers or increase but when the price also decrease the stable coin inside the user's wallet will also decrease and the asset will still be the same no matter how hard the coin is in the user wallet increase or decreases

For example, if I have 25 Rebase tokens which are worth $50 if there is an increase in the prices of a market the token in the user's wallet will also increase but if there is a decrease in the price of a market the Rebase token will decrease to 23 but the value will still be $50 but it will only decrease or decrease inside the user's wallet.

In Rebase token if the price in market increases or decreases the users wallet will increase or decreases but the value will still be the same

Go to the https://www.ampleforth.org/dashboard/. Check the necessary parameters and calculate the rebase %. What else can you find on the page?

When I click on the link https://www.ampleforth.org/dashboard/

1BE92750-3A57-405A-9854-2B08998EA576.jpeg

from the above screenshot
The Oracle rate =1.003
Price target =1.061

Rebase % = {[(Oracle Rate - Price Target) / Price Target] x 100} / 10

={[(1.003- 1.061) / 1.061] x 100} / 10
= [(-0.058/1.061) x 100] / 10
= (-0.05466541x 100) / 10
= -5.466541/ 10
= -0.5466541%

I have also saw many things inside the page which is what I am about to be highlighted below

The price
FB7E7048-F80C-4770-8C16-2839C4CD6CA4.jpeg
The supply
EEC67D97-41AE-4CA7-B799-95FAD036EE72.jpeg
The market cap
B904D030-6E05-478E-B744-A550C1C06EFC.jpeg

Trade some tokens for at least $15 worth of USDT on Binance and explain your steps. (Give necessary Screenshots of the transaction).

07950667-2FEA-4C05-87FC-DA924F56BF53.jpeg

DEDFC16D-8EAF-4883-B914-BF748D176032.jpeg

05476840-6FCF-4D63-9022-6ECC26D4BEDE.jpeg

02B14042-B302-4337-922A-BDB795E9CB68.jpeg

I did my transaction inside my binance when I first own my Binance wallet I was having 0.000491 Bitcoin which is Equivalent worth of USDT of 25.767797 inside my wallet and first click on the Bitcoin and there were several pairs but I clicked on BTC/USDT when I click on it, it sends me to sell your BTC for USDT and I sell the BTC for the USDT and that was how I sold my BTC for USDT.

Transfer the USDT to another wallet with the Tron Network. From the transaction, what are the pros of the stablecoin over fiat money transactions? (Give Screenshot of the transaction)
.

36BCCD80-9464-4546-93DD-72229CA32ACE.jpeg

E338F1DB-F16F-4A46-BD2C-02F9C2A11E1F.jpeg

3B78757C-89D8-478F-AE82-DEC2559D531A.jpeg

2399B365-06F1-4E3D-83DA-1C6DB33D7F77.jpeg

What I did first was I went straight to my tronlink wallet and searched my for USDT address and when I got it I copied and i came and open my binance , my USDT was in my spot and I click on my USDT and it opened and and when it opened I click on Withdrawal and there was a space on the Withdrawa for me to paste my USDT address I copied from my tronlink wallet and I filled the space and which is I paste my address and after that, I clicked confirm of the transaction and a code sent to both my Gmail and my number and I input the codes before the transaction was done

what are the pros of the stablecoin over fiat money transactions?

The following are some of the merits stablecoins has over fiat money transactions

After carry out my observation I have observed that transferring my USDT in my Tronlink wallet didn’t time to receive my USDT into my tronlink wallet but fiat money transactions saved a lot of time as compared to the stable coin.

And after transferring my USDT into my tronlink wallet it doesn’t charge a higher fee but in fiat, money transactions making transactions fees are higher in there as compared to stable coins.

One thing I have also learned was that their security is very strong and it very difficult to be able to break through it and before I was able to make my transactions a confirmation code was sent to both my number and Gmail before I was able to complete my transaction but in fiat money transactions to make a transaction in there, they sometimes as your password and they sometimes don’t ask you.

Conclusion

Many people around the globe still don’t know the value of cryptocurrency and they called those into cryptocurrency scammers and many people are always afraid to invest in cryptocurrency but they always have a mind that they won’t get their money but with the help of stable coin it will help many people to invest much into cryptocurrency and I will like to give thanks to professor @awesononso forgiving as this wonderful lecture.

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Hello @firdaus123,
Thank you for taking interest in this class. Your grades are as follows:

CriteriaCalculation
Presentation/Use of Markdowns1/2
Compliance with Topic1/2
Quality of Analysis & Calculations0.5/2
Clarity of Language0.8/2
Originality & Expression1/2
Total4.3/10

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Feedback and Suggestions
  • You really need to improve on your writing style. Your statements are really unclear.

  • You should also improve on your arrangement and presentation.

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Thanks again as we anticipate your participation in the next class.

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