Hello everyone and welcome to my this post. Hopefully all of you will be good . This is my submission of home work week 7 for dear sir @yohan2on from Uganda. I have read the whole lecture post by the Professor and I have understood all the basics of stable coins. In this task I will discuss about the USD Coin which is one of the most stable coin at the time. So let's start our task without wasting time.

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USD Coin (USDC)

Intro and History:

USD Coin also known as USDC in the crypto world is one of the most stable coin in the world at the time. USDC was developed in 2014 by the Center Consortium ( a partenership between the circle and coinbase teams).
USDC is a fiat-collateralized stable coin. A stable coin is a decentralized assest that lives on Blockchain and is pegged to a fiat currency to stabilize the fiat currency against the volatility of other cryptocurrencies. One USDC is equals to the one US Dollar($).

USDC is essentially a service that tokenizes the US dollar and facilitate its use over the internet and public Blockchains. The stable coin can be exchanged back to US Dollar at any time because it's collateralized . USDT's value remains fixed which is where the term Stable Coin comes from. Issuance of USDC is insured via an erc20 smart contract built on the Ethereum protocol.
Powered Up:

Although , USDC coins are powered by Ethereum there are regulated and licensed financial instituations that the full reserves of the equivalent fiat this means that for every USDC minted there is one US Dollar being held in reserves. Because of these regulations USDC issues a required to report there USD reserve holding frequently.

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Backing-Up:

It is very interesting to know about USDC opposed to many other coins is it's backed up by something . It's is backed by US Dollar in a bank account. BUt what is that means , it means that any time in effect you create one USDC. You have to deposit that equivalent amount of money that one $ in a bank.

In term of Valuations:

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Let's compare the USDC with the stabilized coin say Bitcoin. Lets have a look what you see in the screenshots in the green line is that the value of USDC is essentially one Dollar . It's always one dollar because in a bank somewhere verified by their auditors is a Dollar so it doesn't means you're not creating something to spectulate you are in effect taking a dollar and making a cryptocurrency. At any time you can exchane a USDC with US dollar but Bitcoin is something else. Bitcoin fluctuates all over the place . The value of Bitcoin is in men's minds . The prices go up, the prices go down we really cannot predict where Bitcoin will be on the valuation chart . USDC is not that it is backed up by something fungible, something that can be converted into a money assest.

Importance:

What's the reason that you might want to consider USDC in your portfolio of cryptocurrencies ? Quite simply it gives you the ability to have something that you can use say with Blockchain investments , with other kind of investments. It could be you live in a part of the world where there are no functioning banks or banks will not accept dollar deposits but you want to keep your money in dollars . You in effect want to keep your bank account on your laptop, computer, mobile . You cannot do that in certain parts of Asia and Africa where instability is the rule.

Advantages:

The advantage of the USDC is simply

• It gives you the best of both worlds .
• It gives you a cryptocurrency for blockchain kinds of investing .
• It gives you the ability to transfer money around the world .
• It is well-regulated and its is fungible ( it can be put into the dollars , out dollars, in dollars etc)

Conclusion:

Let's sum up there is a risk with the USDC . It is not the investment in the way Bitcoin might be investment. If you buy the bitcoin at a low and ride it to a high then you have seen a large capital appreciation. This is not that, this is the instrument that allows you to spend your dollars as cryptocurrency. The risk of any fiat money is that it is always the money behind the coin that they said that there are auditor , here they are banks and here they are regulators but we have all seen in other situation that sometimes can braek down. I do not say the break down I say that I will break down here . I am saying it could break down over time.

So that's all about today's post. Hopefully all of you will like this discussion.

Mentioning dear sir @yohan2on here to review my post and appreciate my efforts.

Thanks all.

Special Mentions:

@steemcuartor01
@steemcurator02
@steemcurator03
@steemitblog

Regards: @steemlover63