Are stable coins the solution for price volitility? - page 2.

AltcoinsBattle

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Quote from: mirawantirinjana on June 13, 2019, 09:21:23 AM

no, stable coins are not a solution to price volatility, they are only as a counterweight to prices in the price volatility in the market exchange. but remember this is not a solution to the price volatility in the market.

Almost so. Stable coins look like a prop or an island of silence in times of volatility.
In the stock market, investors often convert their assets into dollars. Hedging is also used. However, there is always mainstay like a dollar. Crypto assets can also have a dollar as a base.

Partisson

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Quote from: BitFinnese on June 12, 2019, 03:09:42 PM

I guess yes, but if cryptocurrency is dominated by stable coins then this industry will get boring. And many investors will turn its back unless this stablecoins are like security tokens where holders can get a share of the company's profit.

I agree with you, if the coin is stable, it will be difficult for investors to profit, it is precisely where the uniqueness of the altcoin cannot be stable, it can change at any time in unexpected periods of time.

NeuroticFish

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Quote from: bobnexxus on June 12, 2019, 08:54:23 AM

Is this really the correct solution?

I think that stable coins are part of the problem and make it worse; they're not the solution.

The solution would be healthy volumes. Volumes that are not driven by speculation bots selling and buying and equalizing the prices between various exchanges. The solution would be exchanges with no 0-fee and fake volumes. The solution would be to allow the market mature.

mirawantirinjana

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no, stable coins are not a solution to price volatility, they are only as a counterweight to prices in the price volatility in the market exchange. but remember this is not a solution to the price volatility in the market.

akram143

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Quote from: bobnexxus on June 12, 2019, 08:54:23 AM

Cryptocurrency is often criticized for its price volatility. Some solutions are attempting to control price volatility by price controls (i.e. USDT, Ample). Is this really the correct solution?

The current crypto price volatility is caused by 100% buyer demand dependency on speculative trading. Emotional speculators turn with the latest news or hype. Of course, prices will be most volatile when they are solely dependent on speculation.

More mature publicly traded assets like gold and silver don't have the price volatility of crypto because the majority of their buyer demand comes from their utility. Gold and silver are guaranteed to be purchased regularly for its utility purpose of manufacturing electronic components, jewelry, etc.

Similar to the dot com era, many napkin ideas had millions of dollars thrown at them, but the only ones that survived were the ones with a sustainable business model.

As crypto matures, the successful projects will be those that create the majority of their buyer demand from real utility.

it is not the only reason available to solve these kinds of problems because it involve lots of politics and also lots of confused decision will made this type of situation to be happened otherwise if we find the right situation only we can easily solve them

BitFinnese

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I guess yes, but if cryptocurrency is dominated by stable coins then this industry will get boring. And many investors will turn its back unless this stablecoins are like security tokens where holders can get a share of the company's profit.

makishart

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That's really the correct solution. how many platforms are tried to fix it by used their own formula and you can see as the result the demand and supply will always create the volatility. The only solution to fix it to make a crypto that backed by fiat or commodity and that will fix the volatility.

bobnexxus

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Cryptocurrency is often criticized for its price volatility. Some solutions are attempting to control price volatility by price controls (i.e. USDT, Ample). Is this really the correct solution?

The current crypto price volatility is caused by 100% buyer demand dependency on speculative trading. Emotional speculators turn with the latest news or hype. Of course, prices will be most volatile when they are solely dependent on speculation.

More mature publicly traded assets like gold and silver don't have the price volatility of crypto because the majority of their buyer demand comes from their utility. Gold and silver are guaranteed to be purchased regularly for its utility purpose of manufacturing electronic components, jewelry, etc.

Similar to the dot com era, many napkin ideas had millions of dollars thrown at them, but the only ones that survived were the ones with a sustainable business model.

As crypto matures, the successful projects will be those that create the majority of their buyer demand from real utility.

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