Can 'Stable Coins' Address Cryptocurrencies' Biggest Weakness?

Pursuer

legendary

Activity: 1638

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Where is my ring of blades...

well I have never seen a proper "stable coin" that is not heavily centralized. and being centralized I do not see a point in using them while there is fiat and banks that we can use freely without any risks of getting scammed, losing money and being forced to pay taxes just because you used a cryptocurrency.

Quote from: CyberMiles on May 18, 2018, 01:41:52 PM

Stable coins, while imperfect and liable to fraud and manipulation, could be an answer.

you said it yourself!!! they are liable to fraud and manipulation that means they are not the answer.
you are basically moving away from fiat (centralized to the government and stable and trustworthy) to an altcoin (centralized to a shady and unknown company which is probably even working illegally and can run away at any moment).

fiulpro

hero member

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But we should understand that they will take away the biggest reason that people invest in cryptocurrencies and that is their volatility no matter how bad it is it has really made cryptocurrencies famous all around the world it has made people millionaires and that's why they have been so much popularity and so much people are ready to invest in them if the coins are stable then they will serve the same purposes the money in banks or some stock shares or even gold.. it will be the same..

chickenado

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Quote from: CyberMiles on May 18, 2018, 01:41:52 PM

While cryptocurrencies can be used to break through traditional payment barriers, one major problem remains — price volatility. Stable coins, while imperfect and liable to fraud and manipulation, could be an answer.

https://www.thestreet.com/investing/bitcoin/stable-coins-cryptocurrency-biggest-weakness-14592209

True, this is the crypto industry and nothing is insured for sure. All are in the lines because any minute the price could sour high as mountain but vice versa it could drop deep in a split of a minute. I thinks as of the moment the weakness of cryptocurrency is unaddressable because by nature cryptos are volatile. Unless we can make a time travel machine to go to the future and see whats ganna happened then we can never predict what will be the price condition if its going to be stable or go down.

ladydark

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Quote from: CyberMiles on May 18, 2018, 01:41:52 PM

While cryptocurrencies can be used to break through traditional payment barriers, one major problem remains — price volatility. Stable coins, while imperfect and liable to fraud and manipulation, could be an answer.

https://www.thestreet.com/investing/bitcoin/stable-coins-cryptocurrency-biggest-weakness-14592209

But stable coins would not be welcomed by every one since most of the people prefer crypto coins to gain more profits due to its volatile nature and stable coins would not be able to sustain in the market for a long time.

Herbert2020

legendary

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it is not really a a "big" weakness to be volatile. it is just the way that you think.
bitcoin is still new and others aren't even useful to be talked about. and as a new currency it is bound to be volatile. for example if today a new country shaped up in the middle of nowhere and started with a currency its currency will be volatile until it grows and stabilizes. and bitcoin is the same it needs time to stabilize.
as for stable coins they all have some traces of centralization, some more than others, which makes then not as good ever.

megynacuna

sr. member

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Quote from: hase0278 on May 18, 2018, 06:25:10 PM

If coins were stable, then wouldn't it be the same as fiat(since it will be centralized)? I think there is no point in creating a stable coin that never fluctuates because it would essentially be like PayPal. If we are talking about a coin that seldomly fluctuates in price, I think it would be possible with Bitcoin in the future if it has become widespread by that time.

Absolutely spot on, if it was stable i don't think it would have been attractive enough for more investors in the first place. I think some major fiat currencies like the US Dollar have been stable for a long time and so why do many people still choose to invest in bitcoin and not that because the volatility can swing in their favour and so long as it is not centralized like fiats there will be volatility.

Tylev

full member

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It should be recognized that the large volatility of the crypto currency, and above all bitcoin, is practically the biggest problem on the way to rapid legalization of the crypto currency by the states. And for internal development of the crypto currency, this also represents a significant problem. This problem arose from the fact that people were too carried away by bitcoin as a means for investing and storing it for the purpose of making a profit due to the growth of its price. There was a strong bias in its use. Bitcoin is intended primarily for its use as money, that is, a means of payment, rather than a means of storing value. Using it mainly as a means of storing value, people caused its big growth in price and, consequently, caused some problems, one of which is the big volatility and the manifestation of bitcoin as a financial bubble.

monkeydominicorobin

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✪ NEXCHANGE | BTC, LTC, ETH & DOGE ✪

Quote from: CyberMiles on May 18, 2018, 01:41:52 PM

While cryptocurrencies can be used to break through traditional payment barriers, one major problem remains — price volatility. Stable coins, while imperfect and liable to fraud and manipulation, could be an answer.

https://www.thestreet.com/investing/bitcoin/stable-coins-cryptocurrency-biggest-weakness-14592209

Overhyping and repeating the word volatility doesn't make your argument valid. It is just Groundhog day of those who hate nerds and everything about nerd culture. Psychoanalysis 101.

hase0278

hero member

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If coins were stable, then wouldn't it be the same as fiat(since it will be centralized)? I think there is no point in creating a stable coin that never fluctuates because it would essentially be like PayPal. If we are talking about a coin that seldomly fluctuates in price, I think it would be possible with Bitcoin in the future if it has become widespread by that time.

Meysa_richa

member

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That's one of the weaknesses and also the advantages for bitcoin users, bitcoin prices that change foxes can not be a benchmark for payment because prices can go up and down at any time, and bitcoin I think is better for investing.

ClaytonLWils

jr. member

Activity: 123

Merit: 1

I think YES. Stable coins have that opportunity to get the benefit by contributing to remove the weakness of cryptocurrencies. But to be able to do so, it has to be more stronger than cryptos. It is tough but not impossible.

CyberMiles

newbie

Activity: 61

Merit: 0

While cryptocurrencies can be used to break through traditional payment barriers, one major problem remains — price volatility. Stable coins, while imperfect and liable to fraud and manipulation, could be an answer.

https://www.thestreet.com/investing/bitcoin/stable-coins-cryptocurrency-biggest-weakness-14592209

Topic: Can 'Stable Coins' Address Cryptocurrencies' Biggest Weakness? (Read 166 times)