GRASSROTS EDUCATION Vol.2 Homework; 10% to steemkidss

What are Bitcoin, Altcoins, and Stablecoins? Explain them under separate subheadings and list at least three (3) examples of Altcoins and Stablecoins.

Do you prefer Stablecoins to other cryptocurrencies or otherwise? Why? You can explain with Joe and Jane's illustration given in the lecture.

Introduction

Halo my friends in this community and everyone that loves kids. I do hope you are doing well. Today we didn't go to school; in Uganda it is National Liberation Day and it's a public holiday. I now have the chance to answer some of the questions given by @fredquantum in week two grassroots education. Thank you sir for giving this lesson and let me start with the work.

What are Bitcoin, Altcoins, and Stablecoins?

Bitcoin

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This was the first in the world and it was invented by a man or people who are anonymous but better known as Satoshi Nakamoto. It is build on a decentralized blockchain which uses cryptography to encrypt and store data. The data on this kind of Blockchain cannot be altered and information is easily accessed by all computers connected on the network. To add to this, validation is done using the Proof of Work mechanism.

Bitcoin is currently ranking number # 1 on the crypto market space with one Bitcoin being worth over 35,330 USD. The first block mined was in 2009 when it was launched.

Altcoins

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These are alternative coins other than Bitcoin. They are like copies of Bitcoin but operating under different inventors. Some came about because of Forks in the Bitcoin blockchain such as Bitcoin Gold, Bitcoin Classic, Bitcoin Private, and Bitcoin Cloud. There have been over 100 Bitcoin forks but only 74 have survived.

However there are other coins such as Ether, Uniswap, Steem, Shiba Inu, Dogecoin, Tron, Aave, Livepeer, Enjin, Chainlink, and many others that didn't come due to forking but due to innovation. All the coins have a blockchain system that they operate on and even these have experienced forking on them.

Stablecoins

These are coins that are stable in value as their name suggests. They, in relation to the asset they are tied to, do not fluctuate in value in the market like other coins. The ratio will always be 1:1 to the asset.

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If the asset at times loses value, the stable coin will also be the same value.

Examples of such coins Include Dai/DAI, TetherUSD/ UST and Binance USD Coin.

Do you prefer Stablecoins to other cryptocurrencies or otherwise?

I prefer stable coin because they are free from the effects of price fluctuations as compared to other cryptocurrency. The advantages of having low votality include;

• Lower risk of losses. This means that as investors in other Cryptocurrency incur losses, the ones with stable coin don't get affected. For example in the illustration given by teacher @fredquantum, we see that Janes coin will be stable even as Joe's losses value.

• Mobility; The Stablecoins offer better mobility as they have very little disturbance in prices.

• Back up; Stablecoins are tied to other stable assets. Their value is not tied to any software and this means as the assets is mostly stable, they will have this stable support.

• Accessibility; Because the Stablecoins are the same price always, they are more accessible and they have a steady flow of supply.

Conclusion

I conclude by saying that crypto currency is one of the best inventions ever because they will help Creat a more decentralized system of running business and also they are cashless making them more safer to use that this money we use daily. Thank you @steemkidss for this good development in our community and @fredquantum for the wonderful lesson. Bye.