Crypto Academy Week 6 - Homework Post for [@yohan2on] …

Buttressing the initial definition of stable coins by @yohan2on.

“Stable coins” are simply a type of cryptocurrency whose value is tied to outside assets, such as the U.S. dollar or gold, in order to stabilize the price.

Stablecoins are purposed to serve as a source of stored value within the distributed ledger technology (DLT, also known as blockchain) ecosystem, thereby reducing the need to convert digital assets into fiat currency, which involves both administrative burdens and significant fees

Now to the Assignment proper.
Write about any of the following stable coins
1. Tether (USDT)
2. Steem backed dollar (SBD)
3. DAI

The coin that catches my eye amongst this list is the USDT coin

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WHAT IS USDT

source

According to Investopedia, Tether is a blockchain-based cryptocurrency whose cryptocoins in circulation are backed by an equivalent amount of traditional fiat currencies, like the dollar, the euro or the Japanese yen, which are held in a designated bank account.

The stablecoin tether (USDT) is act the most used dollar-pegged token in existence today and the project has grown quite rapidly since its inception.

Tether has been controversial for a certain number of reasons, but no one can deny how prominent the stablecoin has been during the past few years. USDT was barely a blip on the radar for the first two years until 2016, the stablecoin became more prominent capturing the 30th position in terms of market cap.

A stablecoin such as Tether (otherwise known as USDT) is backed on a 1:1 basis with the U.S. dollar. For every single unit of USDT that's in circulation, $1 is supposed to be set aside and held in reserve by financial service providers.
(This statement is from a reliable source)

The value of money shifts in mysterious ways—it can skyrocket one day and plunge the next. This turn in a currency’s value is often determined by how strong or weak an economy is and unfortunately, this uncertainty can put everyone’s wealth at risk.

Aside from the benefits mentioned earlier by @yohan2on, stablecoins can also facilitate faster and cheaper payment transactions. Because of its digital nature, powered by blockchain technology, you can send and receive payments in any part of the world with just a few clicks on your phone. You can also track your funds and payment transactions in real-time!.

Cryptocurrencies are developing at a rapid pace in different industries today and digital assets like stablecoins can play an essential role in our transition to the digital world. From providing a way to safeguard our money against the drastic effects of market fluctuations to facilitating faster, adaptable, and secure digital payments, stablecoins can help us achieve financial stability and confront the volatility that so many of us are afraid of.

Ready to experience the best of both worlds? Kickstart your journey and buy USDT today!

Special shout-out to @yohan2on for the importation of this knowledge.