Homework Task 7 : How To Invest in Cryptocurrencies - A beginners Guide - Part 2 | Steemit Crypto Academy | Lesson 7 Given by @besticofinder
Hello Steemians,
I'm so excited Today after reading through my noble professor @besticofinder lesson 7 lecture I have gained a better knowledge about cryptocurrencies Investment and discovered some Investment tricks. After studying and understanding @besticofinder lesson, I'm here to discussed my homework task 7 with the little research I have carried out.
These discussions will be focus on the following given topics;
- Read the project whitepaper and compare the concept
- Compare the social reach , project purpose , team , response from the market
- Compare Market capitalization, Liquidity and trading volume,Circulating supply ,Active addresses , Maximum supply, Transaction count etc.
4.Decide which coin will be the better currency form the selected two currencies. Support your decision with above facts
1. Read the project whitepaper and compare the concept
USD Coin (USDC) and USDT Tether are the two Cryptocurrencies that we are going to look at they comparisons.
USDC and USDT are the two largest stablecoins with a large market supply. USDT has a total supply comprises about 80% with a market cap of $39.904B in total supply. Whereas USDC as the second largest comprises 13% of the market cap with almost $370.90k in total supply.
Now let's look at they concept by comparing the both coin in tabuler form.
| Comparisons | USDC | USDT |
|---|---|---|
| Market Cap | 10.224B | 40.313B |
| Market Rank | 12 | 3 |
| Current Price | $1 | $1 |
| Backed by | Fiat backed | Fiat backed |
| Base Currency | USD | USD |
| Blockchains | Ethereum | Ethereum |
| Supported Exchanges | Coinbase Pro, Binance, Poloniex, Kucoin, Bitfinex, OKEx, Bitmax, Huobi Global, Gate.io, KyberSwap, IDEX, Uniswap, HitBTC, Oasis Trade, Kraken | Kucoin, Bitfinex, Binance, Poloniex, OKEx, Gate.io, Bittrex Global, Kraken, Huobi Global, Bitmax, Binance US, KyberSwap, HitBTC, Bitcoin.com |
USDC Coin (USDC) is issued by Circle, and Coinbase. The company has a better and friendly regulatory approach than Tether Holdings. Whereas Tether (USDT) is issued by Tether Holdings, which is a subsidiary company of iFinex which is the largest stablecoin both in trading volume and market cap.
2. Compare the social reach , project purpose , team , response from the market
Let's take a good look the project purpose of both coin before looking the response form the market.
USD Coin Project purpose
The purpose of USD Coin is to represent a single U.S. dollar. It is a 1: 1 representation of the greenback on the Ethereum (ETH) blockchain. According to Circle,
"each USD Coin is collateralized by a corresponding US dollar, which are held in accounts subject to regular audits and public reporting."
USDC Market Response
Investors and traders aren't happy because when USDC came in new they claims, USDC is a type of cryptocurrency that is referred to as a Stablecoin. And that traders can redeem 1 USD Coin for US $1.00, giving it a stable price.
USDT Project Purpose
The purpose of USDT is to help and fasten transfer value from one exchange to another without the need to use a Volatile digital asset. USDT is mainly design to keep $1.00 in reverse for each USDT that is issued.
USDT Market Response
Investors and traders where not happy because of how Bitfinex exchange was accused by the New York Attorney General for using funds that is meant for Tether's to cover up $859 million that was missing in 2018 which make Tether's to increase the number of token in circulation. This cause Tether's to became a Stablecoin market Monopolist and thereby started releasing USDT coins without equivalent USD backing.
3. Compare Market capitalization, Liquidity and trading volume,Circulating supply ,Active addresses , Maximum supply, Transaction count etc.
Market Capitalization
Looking at the market capitalization of both USD Coin and USDT as at 25 March, 2020 time 9:45am.
USD Coin current market price is $1 with a market cap of $10,224,553,414.32 the total available supply of USD Coin is 10,215,747,796B USDC and secured Rank #12 in the cryptocurrency market. At the time of writing this post USDC price when down to -0.01% in last 24 hours.
Whereas USDT current price is $1 with a market cap of $40,312,402,344.48 with a total available supply of 40,288,509,134 USDT and secured Rank #3 in the cryptocurrency market . At the time of writing this homework Tether is down -0.10% in the last 24 hours.
Liquidity and trading
Looking at the liquidity in both coin it should be noted that USD Coin (USDC) maintain a substantial trading volume that is easily accessible across different Cryptocurrencies exchanges. Whereas USDT (Tether) is considered to be and advance option for traders and investors.
Now let's look at the comparisons in a tabuler ways
| USD Coin | USDT |
|---|---|
| Is not available on most the popular cryptocurrency exchanges. | Is usually available on almost every popular cryptocurrency exchange. |
| Is the second largest stablecoin in the cryptocurrency market Capitalization. | Is large in both market cap and circulation Compare to other Stablecoins. |
| The trading volumes is average compared to other stablecoins. | The trading volume is the highest in the global trading compared to other stablecoins. |
| Trading is paired among other cryptocurrencies | Their is a significant trading pairs among other cypto assets type. |
4. Decide which coin will be the better currency form the selected two currencies. Support your decision with above facts
Main looking at the both coin I think USD Coin (USDC) is better currency. while comparing the both coin USDC has a better liquidity compare to Tether's (USDT). The reason why USDC become a lead to this is that USDT has a controversial history and lack of transparency that has creates a high risk and low reward in trading for most investors and traders. I believe this is the reason why USD Coin is better than USDT. But when it comes interest and exchange lending, cryptocurrency loan and other things that investors needs USDT is better when compared to USD Coin. Although this is not a debate but and observation and findings.
My appreciation goes to my Noble professor @besticofinder , Thank you so much sir for taking your time in educating other Steemians about cryptocurrencies Investment.
Thank you....
Best Regards;
@steemcurator01
@steemcurator02
@steemcurator03
@steemitblog
@besticofinder
Hello @josepha ,
Thank you for submitting homework task 7 ! You have done a comparison between USD Coin (USDC) and USDT Tether with a fundamental analysis. But how can they become a good investment as they are stable coins ? [4]
Thank you