A Full Guide On USDC
When we first hear about people earning quick profits from cryptocurrency, the first thought that comes to our mind is, oh, maybe I should invest in crypto coins too? However, we wish the cryptocurrency world was as simple as earning millions overnight.
This is because there is so much to learn about this industry that beginners aren't aware of, including USDC. So, with this article, we are sharing everything you must know about USDC and how you can utilize it!
What Is USDC?
Stablecoins are one of the most popular cryptocurrencies in the market, but they have a fixed price for creating the reserve asset, which is usually in the form of the US dollar. In addition, it remains the most versatile and popular cryptocurrency that has surfaced in this cryptocurrency world.
Similarly, USDC (USD Coin) is the cryptocurrency pegged by the US dollar. It is a redeemable cryptocurrency when it comes down to the one-to-one processing of US dollars.
According to our research, over $20 billion USDC were minted by the end of August 2021. However, when it comes down to the primary goal, it is meant to make more affordable and efficient transactions as compared to conventional payments.
In addition, it has the capacity of reducing volatility, especially when it's associated with huge cryptocurrencies, such as Bitcoin.
The Working Mechanism Of USDC
To begin with, the USD Coin is designed to run on Ethereum, which is widely known as a programmable and decentralized blockchain that allows the developers to create an array of tokens and apps.
It was generated as a practical, efficient, and purposeful form of digital money that won't have drastic changes in value, at least not during the transactions. As far as the backing and support are concerned, USD Coin is backed by dollar-denominated assets.
Also, it is backed by dollar assets that have minimum of equal fair value to the circulating USD Coin, and comes in the segregated bank accounts these accounts are regulated and monitored by the US financial institutions.
As far as purchasing the USDC is concerned, you can depend on bigmoneyrush.io or other cryptocurrency exchanges and can be held in the wallet that's compatible with Ethereum because it's based on the Ethereum blockchain.
If you are concerned about the fee, you don't need to pay any fees for transferring the traditional US dollars into the USDC form. As for the launch, it was actually powered through the collaboration between Circle and Coinbase and co-founded by the CENTER Consortium. As far as the applications and uses are concerned, it includes the following;
- To begin with, it allows the users to send funds instantly and cheaply anywhere around the world without requiring a traditional bank it is indeed a great improvement as compared to wire transfers, which aren't only time-consuming but expensive as well
- It allows the users to earn rewards through USD Coin when it's held in the account
- The users can earn great yields by lending the USD Coin through decentralized finance applications (these are also known as DeFi apps)
To illustrate, this cryptocurrency is a programmable currency, which surely opens a whole new world of opportunities for businesses and can be used for a variety of applications. For instance, the developers will have the ability to create accounts for storing money with a code line.
In addition, it helps with transparent, efficient, quick, and affordable lending while the payments will be equally fast. Subsequently, you can make payments, such as stable donations to non-profit organizations and charities, global crowdfunding, and payroll.
The Bottom Line
According to stats of March 2021, over $2 billion was transacted through USD Coin in one day through the Ethereum network. For the most part, this money was spent on more than twenty thousand active addresses, and these numbers have only increased over the course of one year.
This is primarily because the Ethereum economy has exponentially grown, which resulted in expanding transactions.
Also, the increase in transactions has resulted in a high gas fee, which is increasing the investment costs. However, to fix this problem, the users can opt for the constant upgrade of the Ethereum blockchain, as it's meant to be more secure, cheap, and fast.