WHAT IS A STABLECOIN AND what are the best stablecoins??? stablecoins vs cryptocurrency and bitcoin

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all right guys welcome back to the 0:00:02.000,0:00:05.359
channel and today we're going to be 0:00:03.280,0:00:06.960
talking about stable coins 0:00:05.359,0:00:08.880
let's go ahead and start with the verse 0:00:06.960,0:00:11.360
of the day therefore 0:00:08.880,0:00:12.400
we do not lose heart through hourly we 0:00:11.360,0:00:15.519
are wasting away 0:00:12.400,0:00:16.240
yet inwardly we are being renewed day by 0:00:15.519,0:00:18.640
day 0:00:16.240,0:00:20.960
for our light and momentary troubles are 0:00:18.640,0:00:23.439
achieving for us an eternal glory 0:00:20.960,0:00:25.439
that far outweighs them all so we fix 0:00:23.439,0:00:28.000
our eyes not on what is seen 0:00:25.439,0:00:29.039
but on what is unseen since what is seen 0:00:28.000,0:00:32.559
is temporary 0:00:29.039,0:00:33.040
but what is unseen is eternal have faith 0:00:32.559,0:00:35.760
guys 0:00:33.040,0:00:38.000
heaven's real and i'm ready to get there 0:00:35.760,0:00:40.320
i hope you are too 0:00:38.000,0:00:42.320
all right so let's jump into the channel 0:00:40.320,0:00:44.480
we're going to talk about stable coins 0:00:42.320,0:00:45.840
this is one i actively use sometimes 0:00:44.480,0:00:48.719
they use tether 0:00:45.840,0:00:51.039
uh we're going to talk about it so usdc 0:00:48.719,0:00:54.160
basically what its goal is to 0:00:51.039,0:00:55.680
maintain stability by staying towards uh 0:00:54.160,0:00:58.879
the price of a dollar 0:00:55.680,0:01:02.160
how the usdc stablecoin works 0:00:58.879,0:01:05.439
is basically if um one dollar 0:01:02.160,0:01:07.760
is put into the system one usd is 0:01:05.439,0:01:08.560
issued and if one dollar is taken out 0:01:07.760,0:01:11.600
one usd 0:01:08.560,0:01:14.159
is taken out or if one usdc is sold 0:01:11.600,0:01:15.759
one us dollar is taken up so that's 0:01:14.159,0:01:18.000
mainly how the system works 0:01:15.759,0:01:18.960
uh used to be how our old system worked 0:01:18.000,0:01:20.880
when we're 0:01:18.960,0:01:23.200
the dollar was backed by gold so 0:01:20.880,0:01:26.080
theoretically back then 0:01:23.200,0:01:27.840
you had the dollar which was supposed to 0:01:26.080,0:01:29.280
be backed by gold but 0:01:27.840,0:01:31.360
ever since they took it off the gold 0:01:29.280,0:01:33.840
standard in 72 0:01:31.360,0:01:34.960
uh yeah it went haywire actually let me 0:01:33.840,0:01:37.600
show you what a 0:01:34.960,0:01:39.119
old note used to look like all right so 0:01:37.600,0:01:42.640
here's an old 10 0:01:39.119,0:01:45.600
bill this is from 1929 or 0:01:42.640,0:01:46.320
28 this was back when we were on the us 0:01:45.600,0:01:49.119
standard 0:01:46.320,0:01:50.960
if you guys look at this closely it has 0:01:49.119,0:01:53.200
this certificate that says 0:01:50.960,0:01:55.200
this is a certificate or this 0:01:53.200,0:01:58.000
certificate is a legal tender 0:01:55.200,0:01:58.000
in the amount 0:01:58.240,0:02:02.799
of in the amount thereof in payment of 0:02:01.520,0:02:05.840
all debts 0:02:02.799,0:02:08.080
and dues public and private certificate 0:02:05.840,0:02:09.119
so if you see right here it says ten 0:02:08.080,0:02:12.879
dollars 0:02:09.119,0:02:16.000
in gold coin payable to the bearer 0:02:12.879,0:02:18.000
on demand so that means basically means 0:02:16.000,0:02:21.280
is you can turn your dollar in 0:02:18.000,0:02:24.239
and say hey i want to get my ten dollars 0:02:21.280,0:02:26.400
in gold i want it now if you want to 0:02:24.239,0:02:29.520
look at this 0:02:26.400,0:02:32.000
the new notes they say we'll pay the 0:02:29.520,0:02:35.360
bearer 0:02:32.000,0:02:37.360
ten dollars on demand so 0:02:35.360,0:02:39.680
we'll pay the bearer on demand ten 0:02:37.360,0:02:41.120
dollars what does that mean 0:02:39.680,0:02:42.800
what's ten dollars worth well ten 0:02:41.120,0:02:43.920
dollars is worth ten dollars because the 0:02:42.800,0:02:45.760
u.s says so 0:02:43.920,0:02:47.760
well no it's not even backed by gold 0:02:45.760,0:02:49.680
anymore so it's basically useless 0:02:47.760,0:02:51.840
but that that's what happens so with the 0:02:49.680,0:02:55.280
stable coins they were trying to 0:02:51.840,0:02:55.920
um be able to revolutionize with bitcoin 0:02:55.280,0:02:58.159
and use 0:02:55.920,0:02:59.760
that its features like you can't send 10 0:02:58.159,0:03:01.840
bucks to someone 0:02:59.760,0:03:03.040
in another country or overseas without 0:03:01.840,0:03:06.400
going through 0:03:03.040,0:03:09.840
like wire transfers or going through 0:03:06.400,0:03:10.720
um swift just like or western union just 0:03:09.840,0:03:12.319
different ways 0:03:10.720,0:03:14.480
instead this one allows you to basically 0:03:12.319,0:03:15.760
use paypal but to other countries so 0:03:14.480,0:03:19.599
it's pretty cool 0:03:15.760,0:03:22.959
but either way um so this is a usdc coin 0:03:19.599,0:03:25.840
basically how this stable coin works is 0:03:22.959,0:03:26.799
one dollar in the system equals one usd 0:03:25.840,0:03:29.599
out 0:03:26.799,0:03:31.040
one usd out equals one dollar out so 0:03:29.599,0:03:35.519
then it stabilizes 0:03:31.040,0:03:37.200
stabilize it that way so stable coins 0:03:35.519,0:03:39.519
let's see so what are stable coins 0:03:37.200,0:03:41.599
there's three classes of stable coins 0:03:39.519,0:03:43.599
so you have fiat collateralized which is 0:03:41.599,0:03:45.519
the one we just talked about usdc 0:03:43.599,0:03:46.799
you have cryptocollaterize which is 0:03:45.519,0:03:49.120
maker dao 0:03:46.799,0:03:50.640
um well i already did a video on it in 0:03:49.120,0:03:52.640
their dat and die 0:03:50.640,0:03:54.159
uh you guys can take a look at that it's 0:03:52.640,0:03:57.280
really cool platform 0:03:54.159,0:03:59.040
um i did a video like two days ago i'll 0:03:57.280,0:04:00.799
put a link in the description 0:03:59.040,0:04:03.360
and then you got non-collateralized 0:04:00.799,0:04:05.439
which are algo algorithic 0:04:03.360,0:04:06.959
which is like ample fourth and i'll show 0:04:05.439,0:04:09.840
you an example of that 0:04:06.959,0:04:11.760
sophia collateralize uh straightforward 0:04:09.840,0:04:14.239
these coins are backed by real world 0:04:11.760,0:04:14.799
assets like fiat currency etc so like 0:04:14.239,0:04:18.239
usd 0:04:14.799,0:04:20.079
tether pegged 101 dgx and so on 0:04:18.239,0:04:21.600
then you have the crypto ones which are 0:04:20.079,0:04:26.479
like die 0:04:21.600,0:04:26.479
um then you also have what is the other 0:04:26.840,0:04:31.919
one 0:04:28.400,0:04:34.320
i think uh tara is also one as well um 0:04:31.919,0:04:36.240
but that one's back to actually their 0:04:34.320,0:04:37.040
own token so they don't even use another 0:04:36.240,0:04:40.960
token 0:04:37.040,0:04:42.560
uh they use luna um non-collateralized i 0:04:40.960,0:04:44.160
also did a video on luna if you want to 0:04:42.560,0:04:45.919
check that out tara luna 0:04:44.160,0:04:47.759
the final type type of stable coin is 0:04:45.919,0:04:51.199
non-collateralized this is like 0:04:47.759,0:04:52.560
um uh ample fourth and i'll show you how 0:04:51.199,0:04:53.680
to do that these they're a little more 0:04:52.560,0:04:56.320
confusing but they 0:04:53.680,0:04:57.520
they make sense i'll show you so top 0:04:56.320,0:05:01.039
stable coins you got 0:04:57.520,0:05:03.280
tether um here's an issue with tether 0:05:01.039,0:05:04.479
centralization uh tethering in the 0:05:03.280,0:05:07.440
bitfinex 0:05:04.479,0:05:08.800
exchange are very or have a very dubious 0:05:07.440,0:05:11.280
uh working relationship 0:05:08.800,0:05:12.720
so well so this one's a little more 0:05:11.280,0:05:14.639
centralization concerns 0:05:12.720,0:05:16.800
they aren't really regulated they 0:05:14.639,0:05:19.120
haven't been looked at usdc 0:05:16.800,0:05:20.080
has been looked at um and more 0:05:19.120,0:05:22.560
scrutinized 0:05:20.080,0:05:25.039
so i do like usdc a bit it's not 0:05:22.560,0:05:27.680
financial advice it's just what i use 0:05:25.039,0:05:29.280
um there's also manipulation so you you 0:05:27.680,0:05:30.080
can read more about this i'll put a link 0:05:29.280,0:05:31.759
in the article 0:05:30.080,0:05:33.759
or in the description so you guys can 0:05:31.759,0:05:35.120
see it this is just a brief overview of 0:05:33.759,0:05:38.160
stable coins 0:05:35.120,0:05:40.720
um make it out this one's pretty big 0:05:38.160,0:05:42.240
uh this one's good i did a video on this 0:05:40.720,0:05:42.880
you guys can watch the video on how it 0:05:42.240,0:05:44.960
works 0:05:42.880,0:05:46.720
but the problem with this one is um they 0:05:44.960,0:05:49.600
had a huge dow hack 0:05:46.720,0:05:51.039
basically someone hacked the system and 0:05:49.600,0:05:54.479
they were able to 0:05:51.039,0:05:57.520
um basically sell off um 0:05:54.479,0:05:58.560
all of the or yes steal all the maker 0:05:57.520,0:06:02.080
which makes the die 0:05:58.560,0:06:04.319
price explode yeah not not a good system 0:06:02.080,0:06:05.759
um if it gets hacked it's a good system 0:06:04.319,0:06:07.039
if it's not hacked so you got to be 0:06:05.759,0:06:09.280
careful with that 0:06:07.039,0:06:10.240
and then comes usdc which is what we 0:06:09.280,0:06:11.759
talked about 0:06:10.240,0:06:14.080
i like it a little better because it's 0:06:11.759,0:06:17.440
less complicated one dollar 0:06:14.080,0:06:18.759
one usdc one usdc out one dollar 0:06:17.440,0:06:20.639
i'll talk about now is the 0:06:18.759,0:06:23.520
non-collateralized stable coins 0:06:20.639,0:06:25.039
which are kind of odd but they they do 0:06:23.520,0:06:28.960
make somewhat of sense 0:06:25.039,0:06:31.360
so for example with ample fourth so 0:06:28.960,0:06:32.000
the number of ample you own each day can 0:06:31.360,0:06:35.360
change 0:06:32.000,0:06:38.800
so mainly what ample force does is um 0:06:35.360,0:06:42.160
it increases the supply of the tokens 0:06:38.800,0:06:44.080
when there is a huge demand in order to 0:06:42.160,0:06:45.280
reduce the price back to the normal 0:06:44.080,0:06:48.479
value or 0:06:45.280,0:06:51.360
it um decreases the supply 0:06:48.479,0:06:53.599
when uh demand just goes way down so 0:06:51.360,0:06:53.919
here's an example of that of how it does 0:06:53.599,0:06:56.800
so 0:06:53.919,0:06:57.599
there's contraction supply decreases 0:06:56.800,0:07:00.720
expansion 0:06:57.599,0:07:02.960
supply increases so you know how supply 0:07:00.720,0:07:04.560
and demand works the more there is the 0:07:02.960,0:07:06.080
less it should cost the lesser 0:07:04.560,0:07:08.639
is the more it should cost that's why 0:07:06.080,0:07:12.560
bitcoin's valuable 0:07:08.639,0:07:16.400
so now you have um here's an example so 0:07:12.560,0:07:19.120
say joe buys one ample for one dollar 0:07:16.400,0:07:19.680
demand drops now his one ample is only 0:07:19.120,0:07:23.360
worth 0:07:19.680,0:07:26.639
50 cents so now they reduce the supply 0:07:23.360,0:07:28.960
of ample to take his 50 cent stake 0:07:26.639,0:07:30.080
back to one dollar it's automated 0:07:28.960,0:07:32.080
algorithm set up 0:07:30.080,0:07:35.039
with smart contracts so its goal is to 0:07:32.080,0:07:38.160
keep whoever the buyer is 0:07:35.039,0:07:40.000
with the same value he put in so if you 0:07:38.160,0:07:42.800
put in 10 bucks its goal is to keep your 0:07:40.000,0:07:44.800
value at 10 bucks period 0:07:42.800,0:07:46.039
and here's an example where he buys one 0:07:44.800,0:07:49.039
dollar the demand 0:07:46.039,0:07:50.319
explodes and now he's got two dollars 0:07:49.039,0:07:52.479
worth of ample 0:07:50.319,0:07:53.919
increase the supply of ample now his 0:07:52.479,0:07:55.840
apple's worth 0:07:53.919,0:07:57.599
one dollar again well it's worth two 0:07:55.840,0:07:59.919
bucks and then it goes back to one after 0:07:57.599,0:08:03.039
the supply increases 0:07:59.919,0:08:05.599
so ample force um you can never be 0:08:03.039,0:08:07.520
diluted by supply and va inflation if 0:08:05.599,0:08:09.039
you think your price is so low or too 0:08:07.520,0:08:10.400
low just wait a couple days it'll go 0:08:09.039,0:08:12.960
right back up 0:08:10.400,0:08:14.639
because it's automated set of algorithms 0:08:12.960,0:08:16.160
they usually space it out with 10 day 0:08:14.639,0:08:19.759
periods so like if it just 0:08:16.160,0:08:22.800
tanks and drops off the earth um they 0:08:19.759,0:08:24.479
slowly uh decrease the supply so they 0:08:22.800,0:08:26.240
don't just like decrease it off the face 0:08:24.479,0:08:29.440
and then it explodes back up 0:08:26.240,0:08:32.719
it's it's a slow fluctuation um 0:08:29.440,0:08:36.000
so it solves diversification problem um 0:08:32.719,0:08:38.719
so it allows to have like the 0:08:36.000,0:08:39.279
um decouple from the bitcoins price 0:08:38.719,0:08:40.719
pattern 0:08:39.279,0:08:42.719
pattern because it's so volatile right 0:08:40.719,0:08:43.680
now it's a smaller project so it is 0:08:42.719,0:08:45.760
going to be a little more 0:08:43.680,0:08:47.839
volatile but once there's more supply 0:08:45.760,0:08:49.120
out there the price will be a lot more 0:08:47.839,0:08:51.440
steady 0:08:49.120,0:08:53.120
um yeah so you guys can read more about 0:08:51.440,0:08:53.920
this project this is mainly just talking 0:08:53.120,0:08:57.040
about 0:08:53.920,0:09:00.640
different stable coins what they do uh 0:08:57.040,0:09:04.480
here's circle circle is behind usdc 0:09:00.640,0:09:07.519
and here's why um stable coins are 0:09:04.480,0:09:09.440
are good so digital dollar stable coin 0:09:07.519,0:09:12.399
use cases for crypto startups 0:09:09.440,0:09:14.399
so you can accept payments um you can 0:09:12.399,0:09:15.120
use it for corporate treasury and cash 0:09:14.399,0:09:16.640
management 0:09:15.120,0:09:17.920
so now you can pay people with them 0:09:16.640,0:09:18.720
because they can trust it a little 0:09:17.920,0:09:20.720
better so 0:09:18.720,0:09:22.480
they aren't just getting bitcoin that 0:09:20.720,0:09:24.560
could be worth a hundred bucks 0:09:22.480,0:09:26.080
and then the next day worth 200 oh great 0:09:24.560,0:09:27.839
the employee would be happy but 0:09:26.080,0:09:29.519
he'd be mad at you if you gave him a 0:09:27.839,0:09:31.040
hundred bucks and tomorrow he it's only 0:09:29.519,0:09:35.040
worth 50 bucks and i was like 0:09:31.040,0:09:37.120
i can't afford to eat well anyways 0:09:35.040,0:09:38.320
you guys can see the problem with that 0:09:37.120,0:09:41.120
um it allows 0:09:38.320,0:09:42.560
processing of global global payout or 0:09:41.120,0:09:44.560
payroll payouts 0:09:42.560,0:09:47.120
so there are options right now you can 0:09:44.560,0:09:49.279
use swift or like western union 0:09:47.120,0:09:51.120
but they have fees and lots of fees so 0:09:49.279,0:09:53.040
this gets rid of all the fees with that 0:09:51.120,0:09:54.399
so if you're trying to pay like an 0:09:53.040,0:09:56.640
employee 0:09:54.399,0:09:58.480
maybe like 100 bucks or 50 bucks every 0:09:56.640,0:10:00.240
day those fees add up 0:09:58.480,0:10:02.320
even if they're only like five or six 0:10:00.240,0:10:03.920
percent if you have to pay that 0:10:02.320,0:10:05.760
every or i'm sorry not five or six 0:10:03.920,0:10:07.040
percent but if like five or six bucks a 0:10:05.760,0:10:09.279
transaction 0:10:07.040,0:10:10.880
it adds up so like if you're doing 30 0:10:09.279,0:10:12.640
transactions in a month 0:10:10.880,0:10:14.560
it's going to cost you a little less 0:10:12.640,0:10:17.040
than 150 bucks maybe more 0:10:14.560,0:10:18.399
and just fees just for paying uh one 0:10:17.040,0:10:21.600
employee 0:10:18.399,0:10:24.800
so it adds up 0:10:21.600,0:10:26.880
um so circle offers a 0:10:24.800,0:10:29.040
block or offers blockchain companies a 0:10:26.880,0:10:30.959
crypto native us dollar so 0:10:29.040,0:10:33.040
mainly we're talking about one to one 0:10:30.959,0:10:34.480
type of thing and that that's mainly 0:10:33.040,0:10:37.279
about that stable coin 0:10:34.480,0:10:37.760
so just the reason why stable coins are 0:10:37.279,0:10:41.360
so 0:10:37.760,0:10:44.079
are so um disruptive is because with 0:10:41.360,0:10:45.279
stable coins you can now send people 0:10:44.079,0:10:47.120
money across 0:10:45.279,0:10:48.560
countries instead of having to go 0:10:47.120,0:10:49.279
through all the fees and all kinds of 0:10:48.560,0:10:51.279
garbage 0:10:49.279,0:10:53.519
so now you can basically have cash app 0:10:51.279,0:10:55.600
and paypal or venmo 0:10:53.519,0:10:57.600
are for people in the united states it's 0:10:55.600,0:11:00.800
just like this but worldwide 0:10:57.600,0:11:03.440
so usdc uh the leading digital dollar 0:11:00.800,0:11:04.480
stable coin this is what it's been doing 0:11:03.440,0:11:07.519
just this year 0:11:04.480,0:11:09.519
went from half a billion to now over 3.1 0:11:07.519,0:11:12.800
billion users as of today 0:11:09.519,0:11:14.959
or in circulation not users i'm sorry so 0:11:12.800,0:11:17.040
3.1 billion tokens 0:11:14.959,0:11:18.480
um so yeah you guys can do some more 0:11:17.040,0:11:20.480
research about this here's a couple 0:11:18.480,0:11:23.360
wallets you can use usdc 0:11:20.480,0:11:24.160
usdc is the stable coin that i use i 0:11:23.360,0:11:26.240
like this one 0:11:24.160,0:11:28.640
it's not financial advice it's just what 0:11:26.240,0:11:31.760
i use you guys can use your own 0:11:28.640,0:11:32.320
stuff but um yeah if you guys like this 0:11:31.760,0:11:34.240
video 0:11:32.320,0:11:36.320
go ahead and smash that like button if 0:11:34.240,0:11:36.959
you guys dislike it smash that dislike 0:11:36.320,0:11:38.880
button 0:11:36.959,0:11:40.320
uh if you want to learn more about some 0:11:38.880,0:11:44.480
of the other protocols that i 0:11:40.320,0:11:47.440
uh did some videos on like tara and um 0:11:44.480,0:11:49.760
tara luna and makerdale you can watch 0:11:47.440,0:11:56.079
those videos now and i'll put links 0:11:49.760,0:11:56.079
right here

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