Convert USDC to TRY

What is USD Coin (USDC)

Launched in late 2018, USDC is designed to maintain a stable value unlike other typically volatile cryptocurrencies. But even stablecoins such as USDC can still be prone to mild changes in price.

USDC’s price spiked to an all-time high of $1.19 in May 2019, and noted an all-time low of $0.891848 in May 2021. Changes to supply and demand is the main reason stablecoins move off their $1 peg. During bullish market cycles, demand for stable value assets like USDC drops. That causes the price of USDC and other U.S. dollar-backed stablecoins to fall beneath one dollar. Overall, though, USD coin has maintained long periods of stability at $1.

There is no maximum or total supply of USD coin, as new tokens are issued based on demand.

When a user redeems USDC for $1, the team burns (permanently removes) the appropriate amount of USD coin from circulation, and funds from underlying reserves are transferred to the client’s external bank.

How Does USDC Work?

There is no mining mechanism to add more USDC to circulation, unlike Bitcoin and other cryptocurrencies. In its place, fresh USDC coins are created whenever individuals or companies fund their Circle accounts with US government-backed cash. By trading USD for USDC, one can build a 1:1 replica of that asset whose transaction records are stored and maintained using the efficiency of blockchain technology.

In contrast, USDC tokens are burnt when USD is deposited in order to maintain a constant ratio of tokens in circulation to fiat currency reserves.

Circle keeps the value of USDC tied to the value of USD by holding the equivalent amount of USD in cash and short-term U.S. Treasuries at the time of issuance. This means that USDC is less susceptible to price swings during economic downturns than other cryptocurrencies.

Even in the face of tremendous market volatility, Circle’s peg to the US dollar has remained stable thanks to the one-for-one cash holdings that support its token.

Dollar State Capital (USDC) has lately asserted that it had solely assets backed by the government, while having held modest quantities of commercial paper in the past. This sort of short-term debt is issued by firms to satisfy their more immediate responsibilities.

International accounting powerhouse Grant Thornton audits Circle’s holdings as part of the company’s registration as a money service corporation in the United States.

Practical Applications of USDC

As a stable digital asset, USDC has several uses:

• Hedge against volatility: Investors exposed to other cryptocurrencies can reduce their portfolios’ volatility by strategically buying a stablecoin like USDC. Owning USDC during periods of significant market volatility can help to stabilize a portfolio’s value.
• Pricing in fiat money: Digital assets listed on cryptocurrency exchanges can be priced in fiat money using a stablecoin like USDC.
• Stable price-pegging: The price stability of USDC enables the stablecoin to represent equity ownership or fund investments. USDC can also be used to represent liabilities or debt.
• Remittances: USDC can be used to send funds across borders. Recipients can store USDC without using a bank account or being concerned about price volatility.
• U.S. dollar exposure: Non-U.S. investors wishing to gain exposure to the U.S. dollar can add USDC to their cryptocurrency investment portfolios.
• Hedge against inflation: Non-U.S. investors concerned about inflation of their local currency can hold a stablecoin like USDC to help protect the value of their money.
• Global crowdfunding: Startup companies and nonprofit organizations can raise money from investors and donors worldwide by soliciting digital currency. Raising funds in the form of a stablecoin like USDC ensures that the value of the money raised does not fluctuate over time.
• Blockchain interconnection: Since USDC is compatible with several autonomous blockchains, USDC can be a way to integrate payment systems and applications across blockchains.

How to buy USDC?

The easiest way to buy USDC is through a crypto exchange like BTCC. BTCC makes purchasing USDC easy and accessible whether you use fiat currency or crypto. Trusted by over 9.1 million investors across 100 countries, BTCC is dedicated to offering excellent crypto trading service for all trades. If you’re ready to dive in and make your first USDC purchase, register with BTCC today.