Crypto Academy Week 7 Homework Post for (yohan2on) - Stable Coins (USDC)

We started the new week. I will continue to attend the new week's courses. I chose the first course of the week from professor @yohan2on. We continue the issue of stable coins. He talked about the negative aspects of Stable coins this week.

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He asked us to prepare a homework on any of the stable coins such as USDC, TUSD, PAX, DGX.

As the professor said, stable coins have a lot of downsides. They are generally in a central structure. Their central structure is a move against the spirit of crypto currencies.

As the professor said, stable coins have a lot of downsides. They are generally in a central structure. Their central structure is a move against the spirit of crypto currencies. Because they are stable, you will not be able to profit from your investments in stable coins as they are permanently pegged at $ 1. When real currencies depreciate, stable coins will also lose value. In this case, we will be losing money for your investment. KYC obligation has been imposed to make transactions at certain limits. Tether's website writes this. There is a danger that your funds will be frozen.

Since there are usually 3rd party intermediaries in stable cryptocurrencies, the commission or transaction fee you will pay will increase a little more.

Now, I would like to share my research on USDC, one of the stable coins suggested by the professor.

USD Coin

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USDC or USD Coin is the most popular crypto currency after Tether, one of the stable crypto currencies. There are 9,901,929,511 USDCs in circulation. Since they are fixed at $ 1, their market value is roughly this. Its daily volume is considerably less than Tether. The volume of $ 1,318,661,775 is quite insufficient for a stable coin.

Stable coins emerged due to the sharp change in crypto money prices, especially Bitcoin. The first stable crypto currency to emerge was Tether. USD Coin was created due to insecurity in Tether.

Tether Ltd is behind Tether, while USD Coin is supported by platforms such as Coinbase and Circle. There is a reserve deposit for each USDC in circulation.

Structure and mode of operation of USDC

I mentioned in a previous homework that the first stable crypto currency Tether works and is produced on networks such as Omni, Ethereum, Tron etc. USD Coin was first produced on the Ethereum network. Later, it started to be produced on the Stellar network. It also works on the Algorand network. The high transaction fees in the Ethereum network led developers to other alternatives. The XLM-USDC partnership that took place in October also significantly increased the price of XLM.

USCD Whitepaper

You can find many details on the USDC white paper that we cannot mention here. They explained their purpose, the way they work and what they aimed at, in the finest detail.

USDC advantages

As it is known, there is a distrust in the sector against Tether. They were also investigated for not being transparent enough. As USDC acts more transparently, it gives more confidence in the industry. Leading companies such as Circle and Coinbase give more confidence in this regard than Tether Ltd. So it shouldn't surprise us that USDC is as popular as Tether after a while.

As it is known, fluctuations in crypto currencies are very serious. This can sometimes have unpredictable consequences. You may be hurt or a partner you trade with could be harmed by it. USDC is getting more popular day by day. So you can use USCD to trade on many exchanges.

Disadvantages of USDC

USDC has a very strong competitor in this market; Tether. Tether's being the most popular cryptocurrency may hamper USDC's popularity. Many exchanges use USDT in trading pairs. USDC is used as a trading pair in popular cryptocurrencies. For example, when there is a Steem / USDT pair in stock exchanges. Steem / USDC pairs are not found. This shows that USDC has not been fully adopted yet. Compared to Tether in roaming, the number of USDCs is less. Thus, the daily trading volume of USDC is less than Tether.

Compared to Tether in roaming, the number of USDCs is less. Thus, the daily trading volume of USDC is less than Tether. Tether's daily volume is more than $ 70 billion, while USDC's daily volume is only $ 1-2 billion.

USDC is produced on the unlimited network. Working exclusively on the Ethereum Algorand and Stellar network is one of the hurdles to USDC's development. If it worked or was produced on a network such as Tron, a minimum transfer fee would be charged for USDC transfers. A transfer you make on the Ethereum network will be costly for you.

Can USDC dethrone USDT?

It seems impossible for the USCD to achieve this. If it is banned from major exchanges, USDC can replace USDT if it is banned by governments. It was cleared of the USDT case and became stronger than before. USDT is listed on many local exchanges and this indicates that it is a global cryptocurrency. USDC is not yet listed on all local exchanges. We cannot yet say that it is a global cryptocurrency.

Is USDC Mining Done?

USDC is not mined. Because it is published by 3rd party organizations. After Ethereum is produced on networks such as Stellar, it circulates. That's why there is no mining like Bitcoin. However, you can earn a good amount of money by staking USDC to some exchanges or similar places.

Cc:
@steemitblog
@steemcurator01
@steemcurator02
@yohan2on