if global crisis occurs, we will all be using bottle caps
https://vignette.wikia.nocookie.net/fallout/images/8/8d/Bottlecap_fo4.png/revision/latest?cb=20180109003958
speaking of USD backed up stablecoins, look at those volumes during today's big dump
the market is finally adopting them, instead of cashing out, which is a very good sign
Topic: Concept of stable coin (Read 193 times)
Interesting article! But again, stability - in relation to what? To gold? To the dollar? Look at the chart of the price of gold? Who will open his mouth to say that gold is stable? Even the dollar not will give a 100% guarantee that tomorrow will the global crisis not occur? And the dollar not will depreciate? Of course, at this stage of the cryptocurrency formation, the market is very volatile, but who can say what will happen in a year or two or three or five?
According to Forbes magazine explanation A “stable coin” is a cryptocurrency that is pegged to another stable asset, like gold or the U.S. dollar. It’s a currency that is global, but is not tied to a central bank and has low volatility. This allows for practical usage of using cryptocurrency like paying for things every single day.
Imagine buying a coin for 2$ today and discovering tomorrow that it should have be 1$ price changes like this can be.
Tether is likely the most stable coin at the moment with a trading volume of about $3,548,100,000, market cap of $2,520,980,231and a supply of 2,507,140,814. There are still some project working on stable coin. A stable coin in a way acts as an asset and not a currency Essentially, it would act as a better link between fiat and other cryptocurrencies, especially in applications such as shopping and a better store and exchange of value.
How is a stable coin achieved?
Stable coin are mostly created out of pegging The stablecoin can be pegged against the US dollar, a consumer price index or other world currencies. Central bank once tackled run away inflation by currency pegg
the peg must be kept up inside a specific band of economic situations. In the detailing of a money peg, what the maker or controller must decide is the sensible furthest reaches of the market band inside which the cash peg can be kept up. You need to choose the band of market conduct that peg can sensibly bolster. For instance, what amount of unpredictability will it withstand? What will be the cost of keeping up the peg? Will there be straightforwardness that enables brokers to watch the genuine economic situations lastly, will it be anything but difficult to dissect the range or band of market conduct inside which the peg can recuperate from unfriendly economic situations?
Every one of these variables are considered when planning a stablecoin. More educative thought and ideas are most welcomed
Have you copied this from the artilcle on forbes and it may better to mention the source of article. Even the dollar is not backed by gold or even silver but it can give you stable value. Imagine buying a coin for 2$ today and discovering tomorrow that it should have be 1$ price changes like this can be.
Tether is likely the most stable coin at the moment with a trading volume of about $3,548,100,000, market cap of $2,520,980,231and a supply of 2,507,140,814. There are still some project working on stable coin. A stable coin in a way acts as an asset and not a currency Essentially, it would act as a better link between fiat and other cryptocurrencies, especially in applications such as shopping and a better store and exchange of value.
How is a stable coin achieved?
Stable coin are mostly created out of pegging The stablecoin can be pegged against the US dollar, a consumer price index or other world currencies. Central bank once tackled run away inflation by currency pegg
the peg must be kept up inside a specific band of economic situations. In the detailing of a money peg, what the maker or controller must decide is the sensible furthest reaches of the market band inside which the cash peg can be kept up. You need to choose the band of market conduct that peg can sensibly bolster. For instance, what amount of unpredictability will it withstand? What will be the cost of keeping up the peg? Will there be straightforwardness that enables brokers to watch the genuine economic situations lastly, will it be anything but difficult to dissect the range or band of market conduct inside which the peg can recuperate from unfriendly economic situations?
Every one of these variables are considered when planning a stablecoin. More educative thought and ideas are most welcomed
We know that a lot of people are still thinking about the possibility of manipulation that will be happened on this field.
Imagine if tether was printing or create more tether anytime and where from they get the funds to backed each new tether with dollar?
I don't think creating a stable coins work like that because they already have their maximum supply , fund and protocol so they have to abide on it to avoid manipulation. However, I supported what the OP said cause all stable coins I have seen in the market are back with either gold or USD.
I once read there's a Russian stone factory that simply uses their stones (in tonnes) as backup.
Having a precious metal as collateral is great, however metal is really not that stable in terms of price, it rotates on LME and other exchanges where supply meets demand and sets the price, look at any metal and you will see price fluctuations of up to 20% day to day. Same with gold, it jumps a bit here and there, which is totally normal cause of action
now, when we talk about a currency of asset being stable, we have to account in respect to what is it stable. I mean I can issue a token that will be stable in respect to weather, the weather changes but the coin is following it so it will always represent the actual rate
Or take 1 USD to 1 CAD, both are dollars dollar's stability, as with any other FIAT, if simply put is represented by blind faith in using it/risk of depreciation. We can say that gold is more "stable" than $ because it retains its chemical structure and will have a certain value no matter what
According to Forbes magazine explanation A “stable coin” is a cryptocurrency that is pegged to another stable asset, like gold or the U.S. dollar. It’s a currency that is global, but is not tied to a central bank and has low volatility. This allows for practical usage of using cryptocurrency like paying for things every single day.
Imagine buying a coin for 2$ today and discovering tomorrow that it should have be 1$ price changes like this can be.
Tether is likely the most stable coin at the moment with a trading volume of about $3,548,100,000, market cap of $2,520,980,231and a supply of 2,507,140,814. There are still some project working on stable coin. A stable coin in a way acts as an asset and not a currency Essentially, it would act as a better link between fiat and other cryptocurrencies, especially in applications such as shopping and a better store and exchange of value.
How is a stable coin achieved?
Stable coin are mostly created out of pegging The stablecoin can be pegged against the US dollar, a consumer price index or other world currencies. Central bank once tackled run away inflation by currency pegg
the peg must be kept up inside a specific band of economic situations. In the detailing of a money peg, what the maker or controller must decide is the sensible furthest reaches of the market band inside which the cash peg can be kept up. You need to choose the band of market conduct that peg can sensibly bolster. For instance, what amount of unpredictability will it withstand? What will be the cost of keeping up the peg? Will there be straightforwardness that enables brokers to watch the genuine economic situations lastly, will it be anything but difficult to dissect the range or band of market conduct inside which the peg can recuperate from unfriendly economic situations?
Every one of these variables are considered when planning a stablecoin. More educative thought and ideas are most welcomed
Imagine buying a coin for 2$ today and discovering tomorrow that it should have be 1$ price changes like this can be.
Tether is likely the most stable coin at the moment with a trading volume of about $3,548,100,000, market cap of $2,520,980,231and a supply of 2,507,140,814. There are still some project working on stable coin. A stable coin in a way acts as an asset and not a currency Essentially, it would act as a better link between fiat and other cryptocurrencies, especially in applications such as shopping and a better store and exchange of value.
How is a stable coin achieved?
Stable coin are mostly created out of pegging The stablecoin can be pegged against the US dollar, a consumer price index or other world currencies. Central bank once tackled run away inflation by currency pegg
the peg must be kept up inside a specific band of economic situations. In the detailing of a money peg, what the maker or controller must decide is the sensible furthest reaches of the market band inside which the cash peg can be kept up. You need to choose the band of market conduct that peg can sensibly bolster. For instance, what amount of unpredictability will it withstand? What will be the cost of keeping up the peg? Will there be straightforwardness that enables brokers to watch the genuine economic situations lastly, will it be anything but difficult to dissect the range or band of market conduct inside which the peg can recuperate from unfriendly economic situations?
Every one of these variables are considered when planning a stablecoin. More educative thought and ideas are most welcomed
hahaha no I'm not agree with Forbes magazine. US Dollar is not a stable currency. They print billions of dollars every year without any product wich support these papers. Gold yes, wheat yes, lumber yes.
A lot of stable coins have their value pegged to an asset that is typically held in reserve somewhere which gives each token a specific value, some stable coins are not actually pegged to an unchanging value (e.g. TUSD or USDT) but are instead pegged to the value of a non-crypto asset such as fine wine or gold, allowing them to appreciate in value whilst not being subjected to the same volatility that is seen with most cryptocurrencies, hence making them a safer investment option.
Backed by something with real value can only become a stable coin if people do not sell so violently? I often don't quite get how a cryptocurrency backed by let's say gold is protected from people massively selling the coin.
Btw. I love that there seem to be more stablecoins that are backed by real world items. The Larimar example is awesome. I once read there's a Russian stone factory that simply uses their stones (in tonnes) as backup.
Btw. I love that there seem to be more stablecoins that are backed by real world items. The Larimar example is awesome. I once read there's a Russian stone factory that simply uses their stones (in tonnes) as backup.
Real asset based coins are rising now a days take example of USDT and DAI, they have new competitors in markets now like GUSD by Gemini exchange and TUSD by trust token pegged to US dollar. Also they several other asset based token on metals like gold by digitex DAO , emerald ( upcoming ICO GEMERA), larimar (Atlantis blue based on stellar blockchain) are rising in the market. But IMO for the metal based token to maintain their values on the exchange will be difficult as compare to token pegged to $ because of liquidity problem.
According to Forbes magazine explanation A “stable coin” is a cryptocurrency that is pegged to another stable asset, like gold or the U.S. dollar. It’s a currency that is global, but is not tied to a central bank and has low volatility. This allows for practical usage of using cryptocurrency like paying for things every single day.
Imagine buying a coin for 2$ today and discovering tomorrow that it should have be 1$ price changes like this can be.
Tether is likely the most stable coin at the moment with a trading volume of about $3,548,100,000, market cap of $2,520,980,231and a supply of 2,507,140,814. There are still some project working on stable coin. A stable coin in a way acts as an asset and not a currency Essentially, it would act as a better link between fiat and other cryptocurrencies, especially in applications such as shopping and a better store and exchange of value.
How is a stable coin achieved?
Stable coin are mostly created out of pegging The stablecoin can be pegged against the US dollar, a consumer price index or other world currencies. Central bank once tackled run away inflation by currency pegg
the peg must be kept up inside a specific band of economic situations. In the detailing of a money peg, what the maker or controller must decide is the sensible furthest reaches of the market band inside which the cash peg can be kept up. You need to choose the band of market conduct that peg can sensibly bolster. For instance, what amount of unpredictability will it withstand? What will be the cost of keeping up the peg? Will there be straightforwardness that enables brokers to watch the genuine economic situations lastly, will it be anything but difficult to dissect the range or band of market conduct inside which the peg can recuperate from unfriendly economic situations?
Every one of these variables are considered when planning a stablecoin. More educative thought and ideas are most welcomed
Have you copied this from the artilcle on forbes and it may better to mention the source of article. Even the dollar is not backed by gold or even silver but it can give you stable value. Imagine buying a coin for 2$ today and discovering tomorrow that it should have be 1$ price changes like this can be.
Tether is likely the most stable coin at the moment with a trading volume of about $3,548,100,000, market cap of $2,520,980,231and a supply of 2,507,140,814. There are still some project working on stable coin. A stable coin in a way acts as an asset and not a currency Essentially, it would act as a better link between fiat and other cryptocurrencies, especially in applications such as shopping and a better store and exchange of value.
How is a stable coin achieved?
Stable coin are mostly created out of pegging The stablecoin can be pegged against the US dollar, a consumer price index or other world currencies. Central bank once tackled run away inflation by currency pegg
the peg must be kept up inside a specific band of economic situations. In the detailing of a money peg, what the maker or controller must decide is the sensible furthest reaches of the market band inside which the cash peg can be kept up. You need to choose the band of market conduct that peg can sensibly bolster. For instance, what amount of unpredictability will it withstand? What will be the cost of keeping up the peg? Will there be straightforwardness that enables brokers to watch the genuine economic situations lastly, will it be anything but difficult to dissect the range or band of market conduct inside which the peg can recuperate from unfriendly economic situations?
Every one of these variables are considered when planning a stablecoin. More educative thought and ideas are most welcomed
We know that a lot of people are still thinking about the possibility of manipulation that will be happened on this field.
Imagine if tether was printing or create more tether anytime and where from they get the funds to backed each new tether with dollar?
I don't think creating a stable coins work like that because they already have their maximum supply , fund and protocol so they have to abide on it to avoid manipulation. However, I supported what the OP said cause all stable coins I have seen in the market are back with either gold or USD.
I think that over time there will be more reliable options for stable coins. The market develops. The dollar is not as stable as everyone says. I think that in the next couple of years there will be a reasonable solution on the market.
According to Forbes magazine explanation A “stable coin” is a cryptocurrency that is pegged to another stable asset, like gold or the U.S. dollar. It’s a currency that is global, but is not tied to a central bank and has low volatility. This allows for practical usage of using cryptocurrency like paying for things every single day.
Imagine buying a coin for 2$ today and discovering tomorrow that it should have be 1$ price changes like this can be.
Tether is likely the most stable coin at the moment with a trading volume of about $3,548,100,000, market cap of $2,520,980,231and a supply of 2,507,140,814. There are still some project working on stable coin. A stable coin in a way acts as an asset and not a currency Essentially, it would act as a better link between fiat and other cryptocurrencies, especially in applications such as shopping and a better store and exchange of value.
How is a stable coin achieved?
Stable coin are mostly created out of pegging The stablecoin can be pegged against the US dollar, a consumer price index or other world currencies. Central bank once tackled run away inflation by currency pegg
the peg must be kept up inside a specific band of economic situations. In the detailing of a money peg, what the maker or controller must decide is the sensible furthest reaches of the market band inside which the cash peg can be kept up. You need to choose the band of market conduct that peg can sensibly bolster. For instance, what amount of unpredictability will it withstand? What will be the cost of keeping up the peg? Will there be straightforwardness that enables brokers to watch the genuine economic situations lastly, will it be anything but difficult to dissect the range or band of market conduct inside which the peg can recuperate from unfriendly economic situations?
Every one of these variables are considered when planning a stablecoin. More educative thought and ideas are most welcomed
Have you copied this from the artilcle on forbes and it may better to mention the source of article. Even the dollar is not backed by gold or even silver but it can give you stable value. Imagine buying a coin for 2$ today and discovering tomorrow that it should have be 1$ price changes like this can be.
Tether is likely the most stable coin at the moment with a trading volume of about $3,548,100,000, market cap of $2,520,980,231and a supply of 2,507,140,814. There are still some project working on stable coin. A stable coin in a way acts as an asset and not a currency Essentially, it would act as a better link between fiat and other cryptocurrencies, especially in applications such as shopping and a better store and exchange of value.
How is a stable coin achieved?
Stable coin are mostly created out of pegging The stablecoin can be pegged against the US dollar, a consumer price index or other world currencies. Central bank once tackled run away inflation by currency pegg
the peg must be kept up inside a specific band of economic situations. In the detailing of a money peg, what the maker or controller must decide is the sensible furthest reaches of the market band inside which the cash peg can be kept up. You need to choose the band of market conduct that peg can sensibly bolster. For instance, what amount of unpredictability will it withstand? What will be the cost of keeping up the peg? Will there be straightforwardness that enables brokers to watch the genuine economic situations lastly, will it be anything but difficult to dissect the range or band of market conduct inside which the peg can recuperate from unfriendly economic situations?
Every one of these variables are considered when planning a stablecoin. More educative thought and ideas are most welcomed
We know that a lot of people are still thinking about the possibility of manipulation that will be happened on this field.
Imagine if tether was printing or create more tether anytime and where from they get the funds to backed each new tether with dollar?
All stablecoins infer a peg. Stablecoins by and large peg to the US dollar (so each stablecoin exchanges at $1), however they some of the time peg to other real monetary standards or to the purchaser value list.
Obviously, you can't simply choose a benefit ought to be esteemed at a specific cost. To summarize Preston Byrne: a stablecoin professes to be a benefit that costs itself, as opposed to an advantage that is estimated by free market activity.
This conflicts with all that we think about how advertises function.
It is not necessarily the case that stablecoins are incomprehensible. Stablecoins are simply money pegs, and cash pegs are surely not feasible—there are numerous money pegs as yet being kept up. In any case, all expansive national banks have moved far from cash pegs. This is to some extent since they've understood pegs have a tendency to be unyielding and hard to keep up. History has shown us over and over, regardless of whether it be Mexican peso emergency of 1994, the Ruble emergency of 1998, or the scandalous Black Wednesday (when George Soros "used up every last cent of England"), no money peg can be kept up against adequately unfriendly conditions.
Obviously, you can't simply choose a benefit ought to be esteemed at a specific cost. To summarize Preston Byrne: a stablecoin professes to be a benefit that costs itself, as opposed to an advantage that is estimated by free market activity.
This conflicts with all that we think about how advertises function.
It is not necessarily the case that stablecoins are incomprehensible. Stablecoins are simply money pegs, and cash pegs are surely not feasible—there are numerous money pegs as yet being kept up. In any case, all expansive national banks have moved far from cash pegs. This is to some extent since they've understood pegs have a tendency to be unyielding and hard to keep up. History has shown us over and over, regardless of whether it be Mexican peso emergency of 1994, the Ruble emergency of 1998, or the scandalous Black Wednesday (when George Soros "used up every last cent of England"), no money peg can be kept up against adequately unfriendly conditions.
According to Forbes magazine explanation A “stable coin” is a cryptocurrency that is pegged to another stable asset, like gold or the U.S. dollar. It’s a currency that is global, but is not tied to a central bank and has low volatility. This allows for practical usage of using cryptocurrency like paying for things every single day.
Imagine buying a coin for 2$ today and discovering tomorrow that it should have be 1$ price changes like this can be.
Tether is likely the most stable coin at the moment with a trading volume of about $3,548,100,000, market cap of $2,520,980,231and a supply of 2,507,140,814. There are still some project working on stable coin. A stable coin in a way acts as an asset and not a currency Essentially, it would act as a better link between fiat and other cryptocurrencies, especially in applications such as shopping and a better store and exchange of value.
How is a stable coin achieved?
Stable coin are mostly created out of pegging The stablecoin can be pegged against the US dollar, a consumer price index or other world currencies. Central bank once tackled run away inflation by currency pegg
the peg must be kept up inside a specific band of economic situations. In the detailing of a money peg, what the maker or controller must decide is the sensible furthest reaches of the market band inside which the cash peg can be kept up. You need to choose the band of market conduct that peg can sensibly bolster. For instance, what amount of unpredictability will it withstand? What will be the cost of keeping up the peg? Will there be straightforwardness that enables brokers to watch the genuine economic situations lastly, will it be anything but difficult to dissect the range or band of market conduct inside which the peg can recuperate from unfriendly economic situations?
Every one of these variables are considered when planning a stablecoin. More educative thought and ideas are most welcomed
Imagine buying a coin for 2$ today and discovering tomorrow that it should have be 1$ price changes like this can be.
Tether is likely the most stable coin at the moment with a trading volume of about $3,548,100,000, market cap of $2,520,980,231and a supply of 2,507,140,814. There are still some project working on stable coin. A stable coin in a way acts as an asset and not a currency Essentially, it would act as a better link between fiat and other cryptocurrencies, especially in applications such as shopping and a better store and exchange of value.
How is a stable coin achieved?
Stable coin are mostly created out of pegging The stablecoin can be pegged against the US dollar, a consumer price index or other world currencies. Central bank once tackled run away inflation by currency pegg
the peg must be kept up inside a specific band of economic situations. In the detailing of a money peg, what the maker or controller must decide is the sensible furthest reaches of the market band inside which the cash peg can be kept up. You need to choose the band of market conduct that peg can sensibly bolster. For instance, what amount of unpredictability will it withstand? What will be the cost of keeping up the peg? Will there be straightforwardness that enables brokers to watch the genuine economic situations lastly, will it be anything but difficult to dissect the range or band of market conduct inside which the peg can recuperate from unfriendly economic situations?
Every one of these variables are considered when planning a stablecoin. More educative thought and ideas are most welcomed
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