Steemit Crypto Academy | Homework Task 6 @yohan2on | Stable Coins|set at 100% power-up

Hello steemians!
Here's my entry in respect to the homework task assigned by crypto professor @yohan2on original post here

Homework task:
Write about any one of the following stable coins;
Tether(USDT)
Steem backed dollar(SBD)
DAI

Stablecoin .. Fixed digital currency, a term that seems strange to some in the cryptocurrency market, but it is a new type of electronic currency, aimed at keeping the value of the token constantly, will be the subject of our conversation today, we will try to address everything that belongs to it.

What is Stablecoin?
It means fixed currency, a term that has become used in the cryptocurrencymarket, which is simply a digital currency,but maintains its fixed value, because it is pegged to a traditional currency and let's be the dollar, and the first fixed currency was Tether,a currency pegged to the US dollar, traded at $1.

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Many currencies have since emerged in the same way, but they vary in the area of success, and each currency is characterized by a working set of mechanisms, but in the end it works in the same way, the aim of which is to stimulate the market to trade at a price of no more than one traditional currency, be it the dollar, euros, and others.

Tether and TrueUSD are characterized by keeping actual dollars in their reserves, making it easier to retrieve the code, and Dai is characterized by the reserve's digital currency, as well as the lending system.

The goal of the Stablecoin
The sole objective of the fixed digital currency "Stablecoin", is that the cryptocurrencymarket, not always easy to trade in dollars, due to the regulations and restrictions imposed on this market, which is a strong and competitive alternative as well in the market, and makes it required by some.

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Thus, it is easy to trade and exchange fixed cryptocurrencies in cryptocurrencies,as well as the possibility of converting the currency you invest into the fixed currency quickly, to avoid further depreciation of the digital currency,which is currently characterized by rapid fluctuations, and when the currency rises or stabilizes, you can return to it dear again.

Stablecoin is the saving for investors, which can be returned every time there is a price drop, thereby mitigating the loss of this investment.

The beginning of the idea
The idea of Stablecoin began to emerge, in 2012, when author JR Willett mentioned it in a book called "Bitcoin's Second White Paper," which was put forward to create a stable currency, and the term began to gain strength in 2014.
Many attempts have since emerged to create the idea, but all of them have failed, due to the failure of the link between the digital currency and the traditional currency, including nubits "USDNBT", which was clearly associated with the US dollar, which initially managed to keep its value $1 since its launch on June 9, 2016, but then failed to hold 1:1, and fell below $1, which led to its failure.

Most popular fixed digital currencies
Some currencies then managed to keep 1:1, slightly more, or a little lower than the ratio, and then come back again, and one of the most popular fixed and successful cryptocurrencies to date is:

Tether Digital Dollar
The project emerged in November 2014, through Reeve Collins, which referred to the currency as being based on a blockchain issued using the Bitcoinnetwork, and using omni protocol.

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In February 2015, Tether debuted on Coinmarketcap, becoming a safe haven for many investors in the downward market, and the currency has managed to hold 1:1, so far, and at the time of writing the currency has ranked seventh in cryptocurrency competition based on market value, with a value of more than $1.88 billion, with a value of $1.01.

The fixed currency is listed on several cryptocurrency exchanges including Houbi, Binance, Poloniex, Bittrex, Okex, and other popular exchanges.

Dai
Another fixed currency, Dai,is based on an ethereum protocol, dao protocol, which uses the dollar conversion rate, when it secures cryptocurrencies in a stable manner.

The currency first appeared in Coinmarketcap, on December 27, 2017, and was priced from $0.99 to $1.02 per unit.

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The currency is not as common as USDT, and if we look at its ranking in the cryptocurrency market based on its market value today, we will find it in the 66th place, with a market value of only $57 million, and trading at the time of writing at $1.02.

These currencies have greatly succeeded in enjoying great popularity, although they are considered controversial in the minds of many investors, and they have become a good idea for many companies in the field of financial technology, but the whole thing lies in the success of the stability of the currency at $1, or slightly higher, or slightly less, and at the moment the reason for its success is the bearish market suffered by cryptocurrencies.

Cc:-
@steemitblog
@steemcurator01
@steemcurator02
@yohan20n