Are Stablecoins A Necessary Evil? - page 3.

harrypotpot

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Quote from: EncryptKnomes on April 11, 2019, 03:53:09 AM

"Fiat-backed stablecoins are therefore rarely actual cryptocurrencies, which causes them to inherit their main characteristics and shortcomings from the centralised banking system. Ultimately, they function in the same manner as fiat, backed by what amounts to an IOU."

Danial Daychopan wrote a short article linked below that has got me thinking. Are stablecoins bad for the cryptocurrency ecosystem because they are essentially fiat in digital form, or are they beneficial as they provide stability in an extremely volatile market? Curious to hear your thoughts, give it a read and let me know your angle on it.

https://medium.com/@DDhopn/stablecoins-3b93b4f1ddc5

I think its ironic to say, "necessary-evil" let us focus on saying, stable coins are savior in my opinion. Not considering the fact that these stable coins are better in business and investments. I am just using it to save my profit on a downfall of my altcoins. As simple as that.

TheClownSong

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Quote from: Wayan_Pedjeng on April 20, 2019, 01:24:24 AM

Although I don't like the concept of stablecoins, I don't want to demonize them. Since BTC and the other cryptos are highly volatile, some of the users might be tempted to convert at least a part of their holdings to Stablecoins such as USDT. And this situation will remain the same as long as the crypto market remains volatile.

I think stablecoin needed to measure the value of bitcoin. Beside that, daily traders must be need stablecoin to convert their asset in fiat when bear market. I dont think crypto will replace US Dollar or fiat money because we are living with government and every people trust on government money

Wayan_Pedjeng

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Although I don't like the concept of stablecoins, I don't want to demonize them. Since BTC and the other cryptos are highly volatile, some of the users might be tempted to convert at least a part of their holdings to Stablecoins such as USDT. And this situation will remain the same as long as the crypto market remains volatile.

bitcoinikdotcom

newbie

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Stable coins like Tether (USDT) are necessary for the crypto market. Stable coins provide easy and negligible fee (as compared to fiat) to transfer between different exchange and wallets. Good stable coins are hard to manipulate and remain equivalent to 1 USD maximum times. Stable coins play an important role in the upcoming bull run and mass adoption.

TheHas

full member

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I don't see why they are evil, but they are necessary.

They can help with shorting crypto, or purchasing to account for volatility.

Eventually, you might not even want to have a stablecoins pegged to USD or another fiat. If you prefer, you could have a stablecoin pegged to the price of gold or silver if you don't like the idea of crypto still relying on fiat as the benchmark for value or stability.

I actually think a stablecoin pegged to gold or another auditable product like that could be really useful.

Indrawan77

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I think stable coin doesn't got the same idea with Satoshi and it kind of ruin the decentralised feature, but the investors and traders need those coins, when the market is bad the investors like to keep their coin into stable coin form and the traders need stable coin for the trade pairing, so although it tainted the crypto idea it proved that its a very useful coin

mmo4me.2016

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Stablecoins are still a safe place for investors when the market is volatile and no investment decision is made yet! Everything is risky, but the possibility of stablecoins in the short term is quite low!

craslovell

legendary

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With the current volatile and young state of the crypto market, yes they are. However I believe stablecoins are something we'll outgrow with enough time. Need that paradigm shift to occur!

george_hured

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The main idea of that today, the fixing of the deposit is the main reason for the existence of all these stable tokens. I think, and I hope that all the same, fixing the deposit will not be the last operation.

JeffBrad12

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Quote from: mrdeposit on April 12, 2019, 04:44:29 PM

Quote from: Snaic on April 12, 2019, 01:32:35 PM

Quote from: cribusen on April 12, 2019, 06:15:24 AM

They are not evil, we really need some stable coins on this market. It is a pretty great thing if you want to stay out of the market, but you need you funds to be ready to invest directly from an exchange. The only thing I do not get, do we really need 10 stable coins?

Stable coins, of course, are very useful for working with our cryptocurrency. It would even be very good if we had stable coins linked to our national currencies, and not only to the currencies of the main world states. Today, using cryptocurrency for ordinary people is still difficult and stable coins, along with other functions, can partially solve this problem.

If the stable coins were not useful, I guess would not be as much volume (look tether). On the other hand, there is also possibility that they may be scam, and the majority is afraid.

But tether has a lot of possibilities to become a scam consider about there was no real result for the audit to the reserved funds of tether itself. Majority of the stable coin gets manipulation by the creator and tether could be the best example to tell everyone about how it works.

minersday

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Stablecoins are really needed in the crypto space to help be this ecosystem balanced. They usually serve as the best option for other cryptocurencies to be paired with to help reduce the volatile nature of that crypto coin. But in my own opinion, i think stablecoins are the real definition of digital currencies. They are not volatile and constantly have a fixed market value.

Myraidcoins

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I do not think that stablecoins is evil. I think that steyblecoiny is convenient and the development of stablecoins who can be trusted is very important for the market.

abake

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I'm a trader and I keep telling people, stable coins are very important in this space especially for traders like me. Sometimes you just have to convert to USDT or TUSDT when you suspect there'll be a downtrend per say. I understand there are so many concerns about stable coins, but for me, it's OK.

South Park

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Quote from: bitcoin-shark on April 12, 2019, 12:22:05 PM

unfortunately the stablecoin are obligatory with this market too variable, i use them to get out from the altcoin at the end of the evening, at the end of the day trading...

Which is the way stable coins should be used, holding those coins for the long term is the same as holding fiat and unless the currency of your country is doing very badly then there is not a reason to hold those coins for the long term, but when we consider the volatility of the market and the amount of money that you can lose by simply being away from your screen monitor in an hour then it is easy to see why stable coins perform a necessary job for many traders around the world.

Nasonn

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I don't want to imagine crypto market without stable coins. It is very necessary because of market volatility, it helps traders maintain their capital during a sudden market dump.

MoonProjects

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Unfortunately, I can't imagine Bitcoin ever becoming stable enough to warrant stablecoins useless, not for the foreseeable future anyway.

EncryptKnomes

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Quote from: misterjo on April 12, 2019, 06:12:37 PM

pitifully they are necessary !, but tether should leave the market, there are other more transparent establishments like TrueUSD ... although the coins backed with fiat money is not the best! (it is as if it were the gold backed dollar), if the fiat begins to disappear, will they remove that support and print coins in an unlimited way? Is the story going to be repeated? ... I think a stablecoin backed by cryptocurrencies is better (it can be in bitcoin or another strong crypto) and that it can be verified in the blockchain

A gold-backed stablecoin would be amazing

DeathProxy

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they might be a necessary evil but for now they are good because of volatility. The volatile nature of the market now has made it necessary that you trade qnd store your crypto asest using stable coin

jdarren

member

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I think they are worth having right now especailly as we transition from fiat to crypto entirely. We've seen it as more people are getting paid in strictly crypto what happens over time

misterjo

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pitifully they are necessary !, but tether should leave the market, there are other more transparent establishments like TrueUSD ... although the coins backed with fiat money is not the best! (it is as if it were the gold backed dollar), if the fiat begins to disappear, will they remove that support and print coins in an unlimited way? Is the story going to be repeated? ... I think a stablecoin backed by cryptocurrencies is better (it can be in bitcoin or another strong crypto) and that it can be verified in the blockchain

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