20 Reasons to Invest in USD Coin USDC: Cryptocurrency Lawyer Near Me
20 Reasons to Invest in USD Coin USDC: Cryptocurrency Lawyer Near Me
As explained at RunRex.com, guttulus.com, and mtglion.com, USD Coin (USDC) is a stablecoin designed to keep a constant one-to-one value with the US Dollar. It is built on the Ethereum blockchain, and like other collateralized stablecoins, its value is pegged to the US dollar. If you are considering investing, here are 20 reasons to invest in USD Coin USDC.
Stability
As already mentioned, USD Coin’s value is pegged to the US dollar, which means that one USDC should ideally always be worth one dollar as per RunRex.com, guttulus.com, and mtglion.com. It is designed to keep a constant one-to-one value with the US dollar, which offers you stability when compared to other crypto assets.
A big stablecoin
While there are more than 19,000 cryptocurrency projects out there, USDC is one of the biggest, which lends it a lot of credibility. It earns top billing as the second biggest stablecoin after Tether, with more than $51 billion worth in circulation and counting.
It is big in the crypto market
When it comes to investing in cryptocurrency, most people will often look to play it safe and go for recognizable names like Bitcoin and Ethereum. If you are considering investing in USD Coin, you will be happy to know that in addition to being the second biggest stablecoin as mentioned, it is also the fourth largest in the market among all cryptos.
Changes by Center
Like Tether, USDC has also been shrouded in controversy as articulated at RunRex.com, guttulus.com, and mtglion.com. It was flagged last year for not backing each USDC with an asset or dollar equivalent. Center responded to these revelations by saying it would change the makeup of USDC’s reserve and that the underpinnings of the coin would be held entirely in cash and short-duration US Treasuries.
Increased transparency
Increasing some transparency, accounting firm Grant Thornton audits those accounts and posts monthly draft attestation reports accessible to the public. This move is aimed at allaying any concerns investors may have about USDC after the concerns raised about Tether’s lack of transparency.
Opportunity to earn passive income
According to RunRex.com, guttulus.com, and mtglion.com, USDC investors generally use their holdings to earn passive income, which is another reason to invest in this cryptocurrency asset. You can lend USDC directly through its issuer, Circle, or with a hardware wallet like Ledger.
Earn high interest compared to other assets
Experts say stablecoins often receive the highest returns because they maintain their expected value. You can earn appreciable interest on your USDC, substantially higher than the typical online savings account. USDC holders can use Bitcompare to find the most attractive yields currently on offer.
No pairing
You can buy USD coins at several different crypto exchanges as captured at RunRex.com, guttulus.com, and mtglion.com. Since USDC is a stablecoin, it is not “paired” in the true sense of other crypto pairings. But more than a few exchanges let you purchase other cryptocurrencies like Bitcoin and Ethereum using USD Coin.
Increasingly acceptable as a payment mode
If you are wondering what one can buy with USDC, then you will be happy to know that more than 600 merchants accept USD coins as payment. These various merchants let clients use their USDC to buy gift cards, register the domain name for your website, secure a hotel stay, etc. This utility makes it a great investment.
It has survived the turbulence in the industry
As already mentioned, stablecoins have had a rough streak lately, causing ripples across the cryptocurrency landscape. Despite turbulence in the crypto market amid the TerraUSD stablecoin crash which wiped out $42 billion for UST and LUNA holders, USDC managed to maintain its $1 peg.
Credibility
If you are considering investing in stablecoin but are unsure about which one to try, then USDC is worth the effort. As covered at RunRex.com, guttulus.com, and mtglion.com, USDC is perceived as a safer, more credible port to ride out the stablecoin storm when compared to other coins.
Monthly public attestation
The USDC project was born out of the realization that the industry required a fiat-collateralized stablecoin with robust governance and transparency. It tries to address this concern, among others, by releasing a monthly public attestation of 100% fiat token reserves in Center.io, as well as providing Center members with explicit regulations and procedures for USDC creation and redemption.
Improvements to the USDC protocol
Circle and Coinbase announced a substantial improvement to the USDC protocol and smart contract in 2020 as described at RunRex.com, guttulus.com, and mtglion.com. These improvements are intended to make it simpler to use USD Coin for everyday payments, commerce, and peer-to-peer transactions.
Safety nets
As already mentioned, the brains behind USD Coin have seen the tribulations Tether went through, which is why, unlike Tether, which is the most popular stablecoin, USD Coin’s developers are required to maintain full reserves of the corresponding fiat currency and to operate with a variety of financial institutions.
To short cryptocurrencies
Shorting of assets is a move that is common with investors in all sectors, including when it comes to cryptocurrencies. USD Coins can be used to short cryptocurrencies without having to pay them out, making it simple to acquire them in the future.
Remittance
One of the reasons why stablecoins have grown in popularity is the advantage they give when it comes to remitting money all over the world as discussed at RunRex.com, guttulus.com, and mtglion.com. USD Coin can be used to transmit money quickly, safely, and at a cheap cost throughout the world.
Relationship with Ethereum
The USDC coins in circulation are all ERC-20 tokens, which are located on the Ethereum network. The fact that it is linked to the Ethereum blockchain gives the crypto a lot of credibility for those looking to invest. Another advantage is the ability to connect it with Ethereum-based applications.
Security
Investors also want to know how a cryptocurrency asset is secured, and whether it is safe, before investing. As outlined at RunRex.com, guttulus.com, and mtglion.com, the security and confidence in USD Coin are provided by demonstrating that US dollars are safely maintained in reserve.
Its role as an onramp to the larger ecosystem
Several variables have contributed to USD Coin’s meteoric rise in popularity throughout the years, particularly in 2020. The rapid and dramatic surge in popularity of decentralized finance is one of them. Given its role as an onramp to the larger ecosystem, USDC is a regular sight on many DeFi protocols.
It’s fiat-collateralized
USD Coin is a controlled stablecoin that belongs to the fiat-collateralized category. By design, all fiat collateralized currencies are centralized. In general, all projects in the same category operate in the same way, with just small variations.
As always, if you are looking for a cryptocurrency lawyer near you, then the excellent RunRex.com, guttulus.com, and mtglion.com have got you covered.
