Hey everyone,

I am so glad to be taking part in this week's assignments for the grassroots beginner's class for kids in this community. Thank you @fredquantum for giving us another opportunity to learn about crypto and @steemkidss for this whole initiative. I am surely learning alot about Cryptocurrency and do you know what I learned last week too? I learned how to justify my text so that it comes out well enough and I hope I have done it thank you very much my teacher.

1. What are Bitcoin, Altcoins, and Stablecoins?

Getting into the homework, let me start with Bitcoin.

Bitcoin

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Bitcoin is the first cryptocurrency that was launched in the year 2009 by an unknown person or group of people called Satoshi Nakamoto. They launched it when they mined the Bitcoin Genesis block. Even though I still want to know why this person is unknown, we know that Bitcoin uses peer to peer technology to operate where there is no middle man, Proof Of Work (PoW) where validation of transactions is through a network of connected nodes or computers. In USD, Bitcoin is now worth about 35,485 USD and is the first ranking cryptocurrency in the world.

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Bitcoin operates on a decentralized public blockchain where transactions are recorded on a distributed ledger and where all users have equal access to information or stored data, and there is no central authority or single administrator. Cryptography is used to secure data so that it cannot be altered or changed in any way.

Bitcoin is a digital currency that can be used to buy and sell instead of real money and it was invented so that users could transact using the internet to cut across many distance barriers and operate out of independence and transparency.

Altcoins

The word comes from two words namely "alternative" and "coins". This means that Altcoins are those other coins that came into existence after Bitcoin or the coins that are not Bitcoins. These coins include the most popular one, Ether, Uniswap, Aave, Livepeer, Enjin, Chainlink and many more are cropping up by the day as innovation as well as competition grows worldwide.

Stablecoins

This word comes out of two words which are "stability" "coins". This means that Stablecoins are those coins that have stable values that do not change overtime in relation to other assets tied to them. This means they do not experience volatility like other cryptocurrency.

For illustration, the stable coin can always have the ratio of 1: 1 over the other asset such as 1:1 to the price of gold etc. These coins never change value even when other cryptocurrency coins are falling or gaining. Some Stablecoins include DAI, Tether, and USD Coin.

2. Do you prefer Stablecoins to other cryptocurrencies or otherwise? Why?

The advantage of the Stablecoins is it cannot be affected by changes on prices on the market like other cryptocurrency. However, since they are tied to inflationary moneys like USDT, you can still make loses when they go down in value for instance using joe and Jane's illustration below,

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In Jane's case if the USD loses value from the initial 35,485 to maybe 31,000; the USDT will also be 31,000 because of the ratio 1:1, so it had to lose value. Stable coin is good for me if the tied currency is not going to be volatile.

For Joe, who has other coins, if they fall, he can wait for them to go back up and not transact and when they gain value, he can make bigger profits. After all, there is bigger gain where there's bigger risk.

Conclusion

I would like to conclude by saying that the discovery of cryptocurrency especially Bitcoin changed the financial services game because it created a digital space which is more decentralized and secure on the blockchain. I know that in 10 years from now, many countries will have switched to using these cryptocurrency instead of real money. I can't wait to be one of those that have crypto knowledge.

I love you my beautiful community. Thank you teacher for marking us. Bye