What is USDC and why do you need it?
“I know USDT, which one is USDC again?”. I know right. It’s hard to keep up with everything going on in the crypto space sometimes, especially without the right news “plug”. You probably had that question in mind when you saw the title of this post. “What is USDC?”. Come along to find out.
USD Coin (USDC) is a digital stablecoin that is pegged to the United States dollar, much like USDT which it’s a variable alternative. It launched on Sept. 26, 2018, and was issued by Circle, a peer-to-peer payments company, and Coinbase Global, a cryptocurrency exchange. Like other stablecoins USDC acts as a traditional form of fiat currency, providing stability during times of market volatility or when exchanging between different cryptocurrencies. USDC is linked 1:1 to U.S. dollars and is audited periodically to ensure that it stays an actual dollar. This means you never have to worry about other factors; by design, the USDC will almost always be valued at $1.
USDC offers you freedom from the volatility of cryptocurrencies, which means you don’t have to worry about losing your money to the dip. If you are ever in doubt about what coins to stack up on (especially as a newbie), you can never go wrong with USDC. Considering our economic climate in Nigeria, saving in USDC is one of the best ways to cushion the effect of inflation majorly caused by the devaluation of our Naira. So while there are a lot of teeth gnashing because of the rise of the dollar, you’re checking your wallet-stacked-USDC and smiling.
USDC is also useful when exchanging between different cryptocurrencies. Let’s say you want to diversify your portfolio by moving a particular amount of BTC to ETH, you can easily change that amount of BTC to USDC before swapping from USDC to ETH.
“But we already have USDT and it works just fine, so why USDC?”. Well, they’re both somewhat similar, especially in usage so I see why you might want to reason that way. However, USDC is backed by cash and cash equivalents so it is perceived to be a safer store of value. It is also regarded to be more transparent, hence offering more security due to the Center Consortium’s compliance and monthly audits, while Tether (USDT’s parent company) on the other hand, has been reluctant to comply with audits and investigations, and has skirted somewhat around the issue of inevitable regulation.
What’s more, USD Coin has inked a pair of major deals with Visa and Mastercard that has helped it dramatically expand as a payment method. In December 2020, Circle announced a partnership with Visa that would allow businesses in its payment network to accept USDC. In July 2021, Mastercard announced plans to test USDC as a payment method, and Stripe said in April 2022 that it would begin supporting USDC as a form of payment.
Yeah, you really need to get yourself some.
In case you’re wondering where to get the much-talked-about USDC, look no further. Get USDC and other coins, fast and easy on Busha.