CRYPTO ACADEMY WEEK 7 HOMEWORK POST FOR [@yohan2on]||22-03-2021||Stable coins - Part2

INTRODUCTION
Stable coin is a stable cryptocurrency whose price is fixed or tied to an external asset such as gold or dollar inorder to make the price stable.

A stable coin could be pegged to a fiat, cryptocurrency and other valuable commodities.

Over the years, cryptocurrencies at some point fall in price making owners of such crytocurrencies to be at a loss.So Digix(DGX) has brought a solution to such loss occasioned by high market volatility.To this end,one can convert his cryptos to DGX and be rest assured that as other cryptos take a nosedive,his DGX remains at 1 GRAM of gold.This gives rest of mind.

DIGIX(DGX)
In the Introduction I mentioned that a stable coin could be pegged to a Fiat,a crypto or other valuable commodities like gold.

Digix(DGX) is a stable coin that is pegged to gold.Which means that it is a gold-backed crypto.Digix is the first token in the Ethereum blockchain that is tied to a commodity.As it stands at 1 DGX=1 GRAM of gold.

Presently DGX is valued at $43.16 which means that it has a great potential.The beauty of the whole thing is that gold is a precious metal which is used to store wealth especially in times of economic crisis or uncertainty and secondly gold has a low volatility.So having a cryto that it tied to the most precious asset is a great investment.

DIGIX(DGX) WHITE PAPER
DIGIX which is based on the Ethereum blockchain brings to the fore the tokenization of an asset (gold) through Proof of Asset (PoA) protocol.This involves a decentralized database which makes it impossible for a central body to have control of transactions.
We all know that decentralised database offers top-notch security and transparency.There are two key products in the Digix white paper model.They are:

•Proof of Asset(PoA) asset card.

•Digix Token(DGX).
DGX whitepaper

WHY GO FOR DIGIX(DGX)
Buying, storing or acquiring Digix has a whole lot of benefits.The benefits include but not limited to:

•EASE OF MOVING GOLD
DGX offers the holders the opportunity to move or transfer gold with the highest possible ease.Ordinarily transporting physical gold in large quantity is a tedious job.DGX makes the gold to be transferred in the form a crypto.

•TOP-NOTCH SECURITY AND TRANSPARENCY
It is clear that DGX operates on the Ethereum blockchain which is a decentralised platform.This means that DGX transactions are permanently recorded and secured by cryptography and as such cannot be manipulated by any central group or individual.
Furthermore, since the price of DGX is tied to gold,it is transparent as everyone knows that 1 DGX=1 GRAM of gold.This is top security and transparency at its best.

•OFFERS SPENDING OF GOLD WITHOUT BORDER RESTRICTIONS
Since one gram of gold equals one DGX...One can spend gold between countries as the DGX token is enlisted in the popular payment wallets.

•SERVES AS A STORE OF VALUE
People store gold all over the world as it is a safe way of storing wealth.However, storing a very large amount of gold may require a lot of space.The presence of DGX has made the storage of gold in a digital form(DGX) possible and also saves the owner the cost of storage facilities and cost of security of his gold.

Other benefits of DGX include:
•It unites traditional finance with modern day technologies.

•Offers almost everybody the capacity to buy and own gold anywhere in the world.

•Will increase the value of gold as many people can buy and store gold

WHERE TO BUY DGX
You can buy DGX from exchanges like Coinsquare.Follow these steps:

•Sign up on Coinsquare https://coinsquare.com/ and verify account

•Fund account with fiat.

•Use the Fiat to buy Ethereum.

•Withdraw the Ethereum to wallet and use it up buy DGX.

HOW TO SELL DGX
•From your wallet,sell DGX for Ethereum.

•Transfer the Ethereum to your Coinsquare

•Now sell the Ethereum for fiat.

•Withdraw the fiat to your bank account.

HOW TO RECEIVE DGX ON LUMI WALLET

Log into your LUMI WALLET.Click on "Receive coins". Then you will see your DGX address that you can copy and paste it to the exchange that are transferring the DGX from or send the wallet address to the person that wants to send DGX to you.

source

ADVANTAGES OF DGX OVER OTHER CRYPTOCURRENCIES

•DGX is tied to a well known and precious asset (gold).

•DGX as a stable coin has no fractional reserves.

•DGX can be stored and traded on any wallet that is compatible to Ethereum.

CONCLUSION
It is clear that cryptocurrencies have high volatility which makes crypto holders to be at a huge loss in the event of a nose dive in the price of cryptos.
Therefore,having a crypto like DGX will bring succour to the users as they will not be affected by such loss in value.This is made possible because of the fact that DGX is tied to gold(a world sort after commodity).

One can be sure that no matter the fall in price of Bitcoin or other cryptos,his DGX is safe as it it tied to an asset(gold) that has a very low volatility.

In time to come.I believe DGX would be a household name because of its enormous benefits to the development of gold and as a store of assets.

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Thank you professor @yohan2on @steemcurator01 @steemcurator02 @trafalgar