This is the difference between Bitcoin and USD Coin that you need to know!

When investing in crypto assets, many people choose Bitcoin and Ethereum. However, there is currently a type of digital asset called USD Coin or USDC which is no less attractive.
Based on data released by Forbes in June 2022, Bitcoin is one of the crypto assets with the largest market capitalization, at $219 billion. Meanwhile, the US dollar coin ranks fourth, with a market capitalization of $54 billion. Bitcoin availability is limited to 21 million, while USDC is not limited in number.

Currently, there are about 19 million bitcoins in circulation, with 1 bitcoin being traded around IDR 440 million. Meanwhile, the amount of USDC in circulation is $53.6 billion with 1 USDC in the range of Rp.14,000.

So besides the difference in the amount traded and the union value, here are the differences between Bitcoin and USD Coin that you need to know based on Luno Indonesia!

1. Between Stablecoin and the largest coin

If you look at it in detail, the movement of the US dollar currency value with the US dollar (USD) is almost the same. This is because the value of the US dollar is adjusted against the US dollar to keep the price stable. USDC is a crypto asset whose value tends to be more stable than cryptocurrencies in general. USDC was developed to help the US dollar enter the world of blockchain. The goal is to simplify the use of smart contracts, and to increase the adoption of cryptography because they provide a more secure and stable value.

Meanwhile, Bitcoin is designed to be a decentralized digital asset that can be used as a medium of exchange in digital form. Over time, Bitcoin has now evolved into an investment tool or asset, just like gold, but in digital form.

2. The dollar currency is a centralized and decentralized currency

Bitcoins are created through mining or are mined by crypto users on the blockchain network. In this process, miners or miners will get Bitcoin after successfully completing mathematical calculations. An account is a verification process for transactions that occur on the Bitcoin blockchain network.

Unlike the dollar coin issued by CENTER, an organization founded by crypto exchange Coinbase and financial technology company Circle. When compared to the difference, USDC is more centralized as it is issued by a single institution.

USDC was issued in the wake of money transfer regulations in the United States. In the process, USDC engages partners and auditors from trusted banks to provide transparent financial and operational reports. You can earn USDC tokens by purchasing from issuers or USDC issuers.

The dollar currency sent to the issuer is exchanged for US dollars against the dollar amount issued. After that, the USDC that is now owned by the buyer can be used to conduct digital transactions. In this way, the USDC amount and the dollar currency will always be balanced, so as to keep the USDC price stable.

Which one is suitable for investment?

These are some of the differences between Bitcoin and USD Coin that you need to know. So which is more attractive or suitable as an investment option? Are you interested in choosing one or both? Whatever your choice, please always do careful and in-depth research, so that you can make wise investment decisions.For USD Coin and Bitcoin investments, you can get them with a legal, reliable and guaranteed crypto exchange platform. One of them is Luno Indonesia.

Luno Indonesia, which can help you get crypto assets instantly without hidden fees with a fee of as low as 1.1%. You can also buy Bitcoin with a small capital, for only IDR 25,000.

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