Steemit Crypto Task Week 6 by Professor @yohan2on

Stable coins usually are cryptocurrency tokens who are backed by a traditional method of investment, backing up these tokens with a traditional form of investment creates confidence in the stability of the price of such token and as such retail cryptocurrency users find it as an advantage to make use of stable coins for transactions.

Unlike bitcoin whose market price is actually very volatile and easy to change within a short time, stable coins are not like, that they are fixed and their rate of votality is extremely low. I will choose to discuss SBD as a type of stable coin today.

Source

Discussing about SBD.

On the steem blockchain we have SBD and this SBD is fixed at $1USD, the use cases of SBD on the steem blockchain is much more comfortable for business owners since the price is fixed and less volatile. With steem you can have prices changed as quick as the snap of a finger but it is not the same with SBD, you can convert your steem into SBD and then have a relaxed mind that the extreme votality of the market will not affect you.

Content creators earn SBD.

The steemit blockchain is opened to thousands of content creators and each of these content creator will earn steem and SBD accordingly, but each user can select the percentage of steem or SBD that he or she will like to get. The value of SBD to steem could either be set at a percentage of 50-50% or more and it could also be set less as well.

SBD is fixed to a dollar and we need to bear in mind also that the price of USD could either increase or decrease, there is also an interest rate attached to holding SBD. SBD can be converted at any time as desired by the holder and the votality of the steem market does not affect it.

Conclusion.

I explained in the best way that I could and I hope that it meets the standard required by the professor, getting involved in the home work constantly increases my knowledge about the blockchain and I am excited about that.

Reference to post 1

Reference to post 2