Steemit Crypto Academy Contest Season 8 Week 2 - What are Stablecoins?

Introduction

Hi steemians,

All the moderators of our academy wish you a good start to the week enjoying as always this Season 8 with all its competitions and we also give a very special dedication to the wonderful Steemit Crypto Academy community members who have remained loyal to our competitions and who provide content befitting of the good knowledge they are gaining which has greatly benefited all users of the platform So we welcome you to the second week of the Steemit Engagement Challenge, and we hope to see new users who meet all the conditions participate in this competition that will take place from tomorrow, Monday, March 6 at 00:00 UTC, to help enrich the platform with your posts, And also to interact with your colleagues by leaving relevant comments and votes.

What are Stablecoins?

This week we will focus on a new topic related to stablecoins which are a type of cryptocurrency that aims to track the price of an asset like fiat currency. The purpose of this contest aim to discover the ins and outs as well as the different approaches these types of cryptos, and we want to read your understanding.

Ever since cryptocurrencies began to dominate minds before the markets, one of their most significant drawbacks has been evident to many: volatility is an issue. Investors and risk-takers may see the volatility of cryptocurrencies (including Bitcoin) as very tempting and a way to get rich quick. But for the average user who wants digital currencies as a mediator for buying and selling and facilitating commercial transactions, the story is different.

Of course, the reality of the extreme volatility of cryptocurrencies left a huge hole in the field, and it made sense for some companies to try to fill it. The alternative here is the so-called stablecoins. Where these currencies are distinguished from Bitcoin, Ethereum, and others, by the idea of a fixed price that does not change.

What is Expected in the Contest?

• Use your own understanding to explain what are stablecoins? And how did you manage to ensure a stable price?

• Why were stablecoins created and how are they useful?

• What are the most popular stablecoins? Which do you use more and why?

• Can stablecoins lose their stability? If the answer is yes, then cite some cases with an explanation of the reasons of that.

• What are the advantages and disadvantages of stablecoins compared to traditional cryptocurrencies?

Contest Guidelines

• Post your articles in the Steemit Crypto Academy community. The participation time is between Monday, March 6th, 2023, 00:00 UTC to Sunday 12th, 2023, 23:59 UTC.

• The article should be at minimum 500 words. You can write more. Your article must be free of any form of plagiarism.

• Your article title should be Steemit Crypto Academy Contest / S8W2 - What are Stablecoins? . Add the tag #cryptoacademy-s8w2 and other relevant tags.

• Participants must be appropriately following #club5050 or #club75 or #club100.

• Participants must be verified and active users on the platform.

• The community moderators would be leaving quality assessments on your articles and probable upvotes.

• In addition, your article must get at least 10 upvotes and 5 valid comments to count as valid in the contest, so ensure you interact with other users' entries. Do not be involved in vote-buying.

Rewards

• SC01 would be checking on the entire 7 participating communities and upvoting outstanding content. Upvote is not guaranteed for all articles. Kindly take note.

• At the end of the week, we would nominate top 3 users that had performed well in the contest and they would be eligible for votes from SC01/SC02.

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Important Notice: The nomination of the top 3 users in our community is not based on good grades alone, it includes their general engagements (quality and quantity of their interactions with other users' articles) to measure the overall performance. Also note that generally, you can only make one post per day in the Steemit Engagement Challenge.

Conclusion

At the end of our article on popular stablecoins. We hope this quiz helps you better understand what it is and the logic behind such a crypto asset that has proven to be a mainstay in the cryptocurrency industry.