Grassroot Crypto Education (Vol.2) - Bitcoin, Altcoins and Stablecoins||assignment post by @madilyn02

Hello hello to all my dear friends, I'm glad to be back again with all of you here and sharing my content with a strong health.
Today I'm participating in the grassroot cryptoacademy for the second volume. Please keep reading so that you can see how I attempted the assignment questions...

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

Bitcoin

Bitcoin is a digital currency or cryptocurrency which was created in 2009 by the author(s) Satoshi Nakamoto.

Bitcoin is the ever first cryptocurrency that was created and it is ranked as number 1 in market capitalization.


Bitcoin can be bought, sold and exchanged without involving any third party like the central bank but the node in the Bitcoin system validates the transactions that are done.
Bitcoin uses the proof of work concensus mechanism to validate transactions and these transactions are being secured by cryptographic algorithms and recorded in public blockchain.

Just like other cryptocurrencies, one of it's major characteristic is transparency in price.

Altcoins

Apart from and after Bitcoin there are other cryptocurrencies that have been created. We have thousands of coins today. All of these coins are known as Altcoins.

Therefore, Altcoins are all other coins that are not Bitcoin. It can be said to be Bitcoin alternatives.

Examples of Altcoins include:

• Etherum(ETH)
• Litecoin (LTC)
• Cardano (ADA)

Stablecoins

Stablecoins are also Altcoins but these categories has a stable value. They are pegged to a cryptocurrency, conventional money or other assets like gold.
They do not meet one characteristic of other coin which is transparency but stores the value of money without rising or falling.

Examples of stablecoins

• Binance USD
• HUSD
• Dai

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

I prefer other cryptocurrencies to Stablecoins because of this:
Stable coins have a particular pegged value that cannot increase or decrease while other cryptocurrencies can go up or down in value. If the price of other cryptos go high, I will be able to make more profit and if they are low, I will take the advantage to buy more and wait for the price increase.

In the example of Joe and Jane, because of increase in the value of Bitcoin, Joe was able to make more profit from his 1 Bitcoin while Jane's stable coin remained the same value. This is the reason I will choose other cryptos to stable coins although it still have some advantages.

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Thank you dear prof. @fredquantum for this beautiful lesson once again. I must say I've learnt a lot from it and I'm glad that I'm able to participate.
I do not also fail to invitey friends @bossj23, @ibtisamwaqas, @chimeroselam, @nartyart to participate.

Cc;
@ngoenyi
@benton3
@steemkidss
@fredquantum

Post is set at 10% to steemkidss