Hi fellow Steemians!
For those who are unaware (I was unaware of it until just now...), Goldman Sachs backed fintech giant 'Circle' has launched its first cryptocurrency called the USD Coin, or USDC.
It's supposed to fix the common problem associated with any cryptocurrency - volatility.
This is achieved by pegging the coin to US dollar.
But I got to thinking... Why does this coin even exist? There are major flaws in its existence.
So what if cryptocurrency is volatile?
Yes, it is true that right now cryptocurrency is 'very' volatile. The price goes up and down like a wave. But I think we need to consider two things. 1 - The whole idea of cryptocurrency is not mature yet and once it does, it will become less volatile; 2 - It's meant to be volatile! Yes, there will be those who lose a lot of money from trading volatile coins. But they also knew of the risks and decided to take it. In my opinion, trading cryptocurrency is like a more risky version of trading shares. If you win, you win big. If you lose, you lose big. By pegging the coin down to an existing currency, it limits the potential of the coin and becomes nothing but a 'foreign digital currency disguised in cryptocurrency'.
It is not a cryptocurrency
Futurism (linked below) has said it bluntly and well. The idea of USDC "pretty much goes against the whole point of cryptocurrencies, which were originally designed to present a transparent financial market free of regulation from federal government and the influence of big banks". Like I said above, USDC seems like just another currency disguised in crypto clothes.
Conclusion
Although I'd like to write more about this coin, I simply don't have enough information to do so. The above points are simply what I am feeling right now and my opinion may change once I have more info available. However at this point, it seems to me that Goldman Sachs simply wants to jump on the crypto bandwagon without taking on the risks. They're playing it TOO safe in my opinion.
What do you think? Do you like the look of USDC? Let me know!
Sources:
Futurism
TheNextWeb
Image source: [UseTheBitcoin]https://usethebitcoin.com/crypto-related-jobs-grow-thanks-to-goldman-sachs-and-its-firm-circle/)
USDC has just been listed on kucoin exchange and they are offering a 99% discount until tomorrow! https://news.kucoin.com/en/usd-coin-usdc-gets-listed-on-kucoin-world-premiere/