Grassroot Crypto Education (Vol2) - Bitcoin, Altcoins and Stablecoins for Prof @Fredquantum

Hello Crypto kids,

I am very happy to be here to make my assignment post of the steemkids crypto academy.

I count it all joy and honor, this assignment post is all about Bitcoin, Altcoins and Stablecoins, and I'm very proud to participate in it.

Please follow along as we learn

WHAT ARE BITCOIN, ALTCOINS AND STABLECOINS? EXPLAIN THEM UNDER SEPARATE SUBHEADING AND LIST AT LEAST THREE (3) EXAMPLES OF ALTCOINS AND STABLECOINS

As a student of the steemkids grassroot Crypto Education, it will be so improper to explain the above question without first explaining what cryptocurrency is;

Cryptocurrency can be explained to be a digital currency or digital assets that is operated on a decentralized system.

Cryptocurrency being operated on a Decentralized system means that it's operation is free from the control of the central authority or any individual.

Cryptocurrency is also a digital asset that is designed using the blockchain technology which make it very secured and impossible to hack.

CHARACTERISTICS OF CRYPTOCURRENCY

• DECENTRALIZATION:
  This is one of the unique quality of cryptocurrency, the fact that it is not controlled by a central unit, it is free from the control and manipulation of anyone.

• IMMUTABILITY:
  This characteristics can also be known as irreversibility, it is a feature of cryptocurrency which explains that once a transaction is carried out on a cryptocurrency network, it can never be reversed.

• TRANSPARENCY:
  This is another unique feature of cryptocurrency, this feature helps us to understand that manipulation cannot go on the system because all operation is openly exposed to all users.

• VOLATILITY:
  Cryptocurrency are highly volatile, that is, it's prices are so unstable. It increases and decreases in a random manner.

• SECURITY:
  The security of cryptocurrency is a very unique feature it posses.
  Cryptocurrencies are designed in a way that makes them very difficult to be hacked.
  There are numerous features of cryptocurrency that I cannot explain here because of time.

Also there are different types and examples of cryptocurrencies, we have Bitcoin, Altcoins, shitcoin and Stablecoins, but for the sake of this assignment, I will be discussing on Bitcoin, Altcoins and Stablecoins.

BITCOIN

Source

Bitcoin can be referred to the first cryptocurrency ever to be in existence and it is currently the leading cryptocurrency.

Bitcoin was created in 2008 by an anonymous individual/group of individuals known as Satoshi Nakamoto, although they have been false claims on the name.

BTC was created to prevent the financial crisis that occurred in the year 2008 with the banks, this crisis occurred due to the fact that all financial transactions were controlled by a central unit and the whole world solely relied on the banks for financial transactions.

The unit of measurements of BTC is Satoshi, named after it's founder.
1satoshi = 1×10^-8BTC and
1BTC equals 1giga Satoshi.

The digital currency, BTC, can be mined by block miners of which they will be given a block reward of 6.25btc per block mined.

By visiting coinmarket cap, I got the following information

Source

Coin	Statistics
Name	Bitcoin
Rank	#1
Price	$37,684.69
Low	$36,868.91
High	$38,155.07
Market cap	$713,661,583,470
Fully diluted market cap	$791,131,766,865
Vol/market cap	0.02327
Circulating supply	18,943,250BTC
Max supply	21,000,000

ALTCOINS

ALTCOINS is a shortened combination for alternative coin, and they can be explained as any other cryptocurrency that came into existence after the creation of BTC.

Since BTC is the first cryptocurrency to be in existence, we can then term all other coins as Altcoins.

It is also good to note that Altcoins also perform the same operation as BTC, many of them are built on BTC network and uses BTC concensus mechanism [ POW], the only difference between them and BTC is that BTC is the first and leading cryptocurrency.

Examples of ALTCOINS are

• Ethereum
• BNB
• Ripple (xrp)
• Litecoin
• Steem
• Tron etc.
  

  STABLECOINS

  
  Stable coins are also cryptocurrency but as the name implies, they are stable, that is, they are not affected by the volatility of the market.

Stablecoins can be explained to be digital assests that have their prices pegged to a fiat currency or a cryptocurrency.
For example, the USDT, it has its price pegged to the US dollar.

Stablecoins were designed to combat the volatility of the crypto market.
Examples of Stablecoins are:

• Tether [USDT]
• Binance USD [BUSD]
• USDcoin[USDC]
• True USD[TUSD]
  

  
  DO YOU PREFARE STABLECOINS TO OTHER CRYPTOCURRENCY OR OTHERWISE? WHY? YOU CAN EXPLAIN WITH JOE AND JANE'S ILLUSTRATION GIVEN IN THE LECTURE

Personally, it depends on the nature of the market [bearish or bullish].

On a Bullish market, I prefer keeping my assets in other cryptocurrency not Stablecoins, because, in a bullish market, assets stored in other cryptocurrency tends to increase in value. As a bullish market is a condition of the market where price of it's commodities tend to increase in price.

Let's consider the example of Joe and Jane.
Joe had 35,485 USD which he stored in BTC and got a total of 1btc, while Jane on the other hand stored hers as a Stablecoin, in USDT.

After some time, the value of 1btc increased to 65700usd and this gave Joe a profit of $30215, since he stored his in BTC.
Jane on the other hand, had no profit simply because she stored her asset as a Stablecoin, so the value of her asset did not increase.

From my research, I came to understand that if the market were to be bearish, Joe would have experience a loss in the value of his assets.

From my personal view, whenever I notice that the market is in a bearish run, I prefer storing my asset as stablecoin to prevent loss of funds.
But whenever it is in a Bullish run, I prefer storing them in other cryptocurrency, so as to enjoy it's profit 😁😁.

CONCLUSIONS

The creation of BTC is a very good initiative as it helps to prevent the reoccurrence of the 2008 financial crisis, and u appreciate Satoshi for his initiative.

Also, due to the high volatility of the market, I guess it is good for long term investors to invest their assets in other cryptocurrency as it will earn them profit.

Cc
@fredquantum
@ngoenyi
@steemkidss