As in the name of CBDC, Central Bank Digital Currency means that the Central Bank of any country will be centralized on behalf of which will run the digital currency of its country. Like digital currency too there is a fear of being centralised. However, every person, small or big, will be able to do all kinds of tests. But the centralization of digital currency means that the center should have all the information, not who is trading what.And on the other hand it will also have advantages such as any person will be able to trade anywhere and third party interference will end.
Third-party Eliminated - Third party interference like a bank will be completely eliminated and every person can keep a good eye on his ledger.
Accepted by people - As mentioned in it, it will be developed by the Centre. Therefore, every person can use it in their own way of exchange. So it means that everyone can accept it.
Centralization - As we have already clarified that this currency is issued by the Centre, this means that the Center can keep an eye on your every move if it so desires.
Privacy absence- Centralization of currency can lead to central interference on your entire property. This can cause sun center to interfere with your entire work. Without your knowledge and without your consent.
A rebase token is a token that determines its stability in a different way. A rebase token works in such a way that a change in the value of any token can cause a change in the circulating effect. Supply reduction and increase work with a technique known as rebasing. Whenever a rebase occurs, the supply of that token is cut or increased based on its value at that time. Sometimes Elastic Tokens are represented as Stable Tokens. Their value is to achieve the income value and they serve as the mechanic energy of the rebase. Let's know the main difference of rebase is to know the changing value of supply. Elastic tokens work primarily in a different way, recirculating the supply from time to time. Let's say you have a supply token whose value is fixed at 1 USD. If its price goes above 1 USD then the rebase value will increase the supply and decrease the value of the coin. And if the value goes below one USD the reverse will reduce the supply and increase the price of the coin. Illustration- Ampliforth is the coin that has worked with Rebase. Ampliforth aims to be a synthetic commodity. 1 AMP has a value equal to 1 USD and is reinvested in 24 hours. Go to the https://www.ampleforth.org/dashboard/. Check the necessary parameters and calculate the rebase %. What else can you find on the page? To calculate Rebase Rebase % = {[(Oracle Rate - Price Target) / Price Target] * 100}/10 Let's consider the information on the chart below Given Oracle Rate = $1.112 Price Target = $1.061 Rebase % = {[(Oracle Rate - Price Target) / Price Target] * 100}/10 Rebase % = {[(1.112 - 1.061) / 1.061] * 100}/10 = [(0.051/1.061) * 100]/10 = (0.048 * 100)/10 = 4.806/10 Rebase % = 0.480% Sorry for late post.
pros of CBDCs:-
Cons of CBDCs:-
Stability in Digital Currencies - Steemit Crypto Academy - S4W5 - Homework Post for @awesononso
Hello friends how are you guys i hope you are fine. You must be doing something wonderful. As soon as my account got 55 repute yesterday and I saw that a task of 5th week is still going on, in crypto academy I thought, if I put it too, now I am putting the same task.
I'm happy to post my first task in beginners.
1.) Explain why Stability is important in Digital currencies.
Stability of coins is a kind of new breed of crypto currency which aims to solve problems in crypto currency. Its stability reduces the problem of crypto currency prices.If a stable coin is successful, it keeps the store of the beloved successful.
Stable coins try to achieve no volatility and are made of US dollars. A category of crypto currency is created. Like a stable coin is said and the job of this page is to keep the value of any coin stable. The table should be used by someone to exchange them or to store the value of that coin.
Easy Trade- Cryptocurrencies and stable cryptocurrencies are simply easier to trade with than any other currency available in the world. This is also the main reason why people refer most to the stable coin because it is usually at par with the currency of the real world.
Loss of Fear- People refer Stablecoins to Step because adding it does not have the fear of losing Stablecoins. You as a crypto trader would recommend anyone to rate the script only if they don't mind losing money. But there is nothing like this because there is no risk of losing any coin because its value comes from the real world.
2.) Do you think CBDCs would be good in the future? Weigh the pros and cons in your own understanding and state your position.
3.) Explain in your own words how Rebase Tokens work. Give an illustration.
Hello @ashubaba01 ,
Thank you for taking interest in this class.
Unfortunately, this entry is late. This task expired on the 9th of October at 23:59 UTC.
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