Crypto Academy Week 6 Homework Post for @yohan2on

Hello steemians welcome to week 6 steemit crypto academy task, our professor @yohan2on wrote an article about stable coins so if you have not seen his article you can click here

The homework task he told us to write was to explain any of this stable coin which are Tether(usdt), Dai or SBD but I will be explaining Tether(usdt) first of all let me explain what stable coin is so let's get started.

What is stable coin?

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Stable Coins are cryptocurrencies or assets that are supposed to have fixed value which means they are pegged to the United States dollar, euro which is a Fiat currency and other assets like gold.

Tether(USDT)

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Tether is cryptocurrency known as stable coin that are attached to Fiat currencies which means they are crypto that are backed by currencies like the dollar, euro and even yen.

How does Tether maintain it's Value?

Since they are secured to traditional currencies or Fiat currencies on a 1-to-1 premise and sponsored by our savings, Usdt tokens are not cash, but are digital tokens organized to work on blockchains. Usdt tokens hold their price at 1:1 to the traditional resources like united State dollar.

What Block Chain Does Tether operate in

It uses the Simple Ledger Protocol (SLP) is a block chain used by the tether as a technical means to launch the usdt stable coin on the Bitcoin cash blockchain which means it also operates on the Bitcoin block chain.

What is the market cap of Tether usdt.

It is a very important asset in the cryptocurrency block chain, it has a market cap that is over $38 billion. The US dollar attached crypto stable coin has been top 3 cryptocurrency since May 2020, the reason why it is huge is because it feeds the rest of the crypto market.

The History of Tether (USDT).

Tether is a stable coin that was created in 2014 by Brock Pierce, the company was first in isle of man but was later moved to British Virgin islands you can also find the company in Hong Kong, China. Tether was once called Real coin before the names was changed to Tether that we know today.

Why is Tether controversial?

Tether situation, among them the New York Attorney General, debated that iFinex essentially used Tether savings as a snow ball fund to mask the gap in Bitfinex's finances, thereby defrauding its clients. That would also mean that Tether's stablecoins aren't fully supported by the US dollar.

What happens if tether crashes?

If there is a sudden loss of confident in tether it could end up in the triggering of a bank run that will cause the immediate drop in Bitcoin price.

Conclusion

I believe that without the USDT presence in the cryptocurrency ecosystem the Bitcoin can't be were it is today that is why many cryptocurrency critics are going after Tether but they have failed any way I hope I explain it very well and I want to thank @steemitblog and @yohan2on because through this process of doing this homework it has pushed me into doing researches.