Ethereum and stable coins like usdt - page 2.

NathanJB

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Quote from: Polo7 on October 11, 2019, 09:36:43 AM

What's your take on that?

Ethereum and stablecoins, do you think that stable coins like usdt has huge impact over ethereum price?

Do you think that stablecoins cousing ethereum high Volatility?

Do you think the stable coins are good for ethereum?

My opinion:
I think if there is higher demand to stablecoins then the ethereum price will go up.

Why is that? It seems that the two are not connected at all. Could you care to explain more, or do you have already have some charts and graphs that show correlation between USDT's high demand and Ethereum's price rally? For me, there is no significant relationship between USDT and Ethereum. I am also wondering, why would USDT's high demand be a cause to push Ethereum's price?

Coin_trader

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Quote from: Polo7 on October 11, 2019, 09:36:43 AM

What's your take on that?

Ethereum and stablecoins, do you think that stable coins like usdt has huge impact over ethereum price?

Do you think that stablecoins cousing ethereum high Volatility?

Do you think the stable coins are good for ethereum?

My opinion:
I think if there is higher demand to stablecoins then the ethereum price will go up.

If that stable coin holder buys ETH then I agree with you that really affects ETH price. Most of the investors right now are buying ETH using their stable coin since ETH 2.0 is upcoming and will surely create FUD in the crypto sphere.
But telling that increasing demand for stable coin directly affect ETH price is not true. The one who pumps BTC on its all-time high was USDT(Stable coin) so it means that it depends on the holder of the stable on what they are going to buy which results in a price pump.

---

In conclusion: Stable coin doesn't directly affect ETH but rather the owner of it that hype to buy ETH is. Grin

#Darren

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Bitcoin has a huge impact not only on ETH but on the whole market in general. USDT is a stable asset that is not completely backed by US Dollar, in other words those guys are printing money based on air and I hardly doubt that this affects crypto prices.

ivaf

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The use of stablecoins on Ethereum certainly has a positive effect on the network. But they cannot and should not influence the price of Ether itself. Stablecoins are also stable because their value is tied, as a rule, to the American dollar. They cannot add value to the Ether.

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Quote from: asyakashi on October 11, 2019, 06:23:59 PM

I am a little confused by this comparison, which I understand ethereum is influenced by the price of bitcoin not by usdt.
when the price of bitcoin goes up then all altcoins go down as well as ethereum.

You are right, Ethereum is influenced by the Bitcoin and many altcoins are follow the Bitcoin way. But I am little confused of your statement, Because Bitcoin will raise again automatically all the altcoins are slowly raise in the market and stablecoins are always stay in same region. So some fluctuation is disappoint yourself, may be you can moniter all the pump and dump you will realise the crypto circulation.

glendall

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I think both of them have no effect on each other, I mean when the USDT goes up ETH goes up or down and vice versa,
if I see USDT going up when the market is corrected, usdt is made the choice to save assets,
if we want to see the characteristics of the market being corrected, then look at usdt, if it goes up then the market will go down.
so if ethereum prices go up or down it's not due to the usdt, but because the market is undergoing a correction or falling.

asyakashi

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I am a little confused by this comparison, which I understand ethereum is influenced by the price of bitcoin not by usdt.
when the price of bitcoin goes up then all altcoins go down as well as ethereum.

tenakha

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Quote from: Polo7 on October 11, 2019, 09:36:43 AM

What's your take on that?

Ethereum and stablecoins, do you think that stable coins like usdt has huge impact over ethereum price?

Do you think that stablecoins cousing ethereum high Volatility?

Do you think the stable coins are good for ethereum?

My opinion:
I think if there is higher demand to stablecoins then the ethereum price will go up.

USDT may be an asset that can influence the price but there may be others instead, so the price is not only affected by stablecoins and there is nothing that makes stablecoins valuable in this regard.

I do not think stablecoins is the cause of volatility. It can be just a tool for obtain ETH.

The value of the market does not increase by itself, for this we need the money flow into the market. There should be something that adds value from another place and this may come to the market as stablecoin or BTC.

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I don't think there is a direct correlation between ETH price and the demand for Stable coins. Your analysis is completely off. If it was the case then ETH price would have sky-rocketed way beyond $2000 since around 2018 more stable coins joined the cryptomarket.

ryzaadit

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Stablecoin doesn't have an impact for other cryptocurrencies, it's just like fiat money. Also, stable coin doesn't have volatility and he only can bring a volume trading activity for the cryptocurrency went using a pair stable coin.

Quote from: semobo on October 11, 2019, 12:27:18 PM

If the demand for tether gets increases then they will create more tether and will keep the supply in adequate so the prices is not going to be up.

The demand will always increase cause Tether using USD, every time the government print money then the demand will follow on "Total Supply" fiat.

semobo

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Quote from: Polo7 on October 11, 2019, 09:36:43 AM

What's your take on that?

Ethereum and stablecoins, do you think that stable coins like usdt has huge impact over ethereum price?

Do you think that stablecoins cousing ethereum high Volatility?

Do you think the stable coins are good for ethereum?

My opinion:
I think if there is higher demand to stablecoins then the ethereum price will go up.

There will be no effect on the prices of other coins due to stable coins increase or decrease in demand.

If the demand for tether gets increases then they will create more tether and will keep the supply in adequate so the prices is not going to be up.

carlfebz2

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Quote from: Polo7 on October 11, 2019, 09:36:43 AM

What's your take on that?

Ethereum and stablecoins, do you think that stable coins like usdt has huge impact over ethereum price?

Do you think that stablecoins cousing ethereum high Volatility?

Do you think the stable coins are good for ethereum?

My opinion:
I think if there is higher demand to stablecoins then the ethereum price will go up.

Same inputs above on why you are trying to link up usdt to ETH? Seems like you arent aware on how these stable coins being used up to avoid such volatility in crypto.
I dont see any reasons why these stable coins will give out some benefits or goodness with ETH and so as with other coins being paired up with usdt specially btc.
Dont consider nor rely on what usdt can do because theres no such thing talking about price trending factors.These stablecoins are just good for one main purpose which is to save up your a** when theres high volatility in the market or you dont know on how to position yourself.

Darooghe

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Stable coins are going to be the everyday money in Crypto. With all the top stable coins being built on Ethereum and over half of all stable coins being built on Ethereum, it’s clear what Blockchain these stable coin projects prefer. It’s the chain that gives them what they need. the best blend of dependability, security and decentralization. That’s encouraging to see and has impact on credibility and price of Ethereum at some aspects, directly or indirectly.

adroitful_one

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Quote from: Polo7 on October 11, 2019, 09:36:43 AM

What's your take on that?

Ethereum and stablecoins, do you think that stable coins like usdt has huge impact over ethereum price?

Do you think that stablecoins cousing ethereum high Volatility?

Do you think the stable coins are good for ethereum?

My opinion:
I think if there is higher demand to stablecoins then the ethereum price will go up.

Why would these stable coins have any effect on the volatility of Eth or any other coin? They're useful to convert to when a coin hits a high mark. Let's say Bitcoin hit $22k, you could trade it for USDT at $22k. Then, when Bitcoin drops down to $14k, you then trade your USDT to Bitcoin again and pick up quite a few extra. That's really the only use that they have that I can see. Good for Ethereum? Good for the whole crypto ecosystem in my opinion. They're a good way to get a dollar value of the coin you're trading.

deadsilent

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Quote from: Polo7 on October 11, 2019, 09:36:43 AM

My opinion:
I think if there is higher demand to stablecoins then the ethereum price will go up.

It doesn't work that way. There will never have any impact on the price of ETHEREUM whether you buy stablecoin or not. Stablecoin usually use smart-contract in the form of ERC-20 and it only uses the ETHEREUM blockchain for transactions and does not have any direct impact on the price of ETHEREUM. Also stablecoin coins are backed by FIAT and other valuable things, not ETHEREUM itself.

Quote from: ChrisPop on October 11, 2019, 10:31:00 AM

Well, why would stable coins generate volatility for Ethereum? I don't really see the correlation. Stable coins like USDT or GOLD are just ERC-20 tokens so they don't really affect the ETH price besides the use of gas(ETH) for smart contracts execution which is a good economic factor for Ethereum, but the transactions are not so frequent so I can put more weight on that. Other than this I don't see any other reason why would the use of Ethereum based stable coins increase the volatility of ETH price action.

I agree, the only thing which makes impact on ETHEREUM is the tx fees which is close to no impact. Other than that, there's nothing else.

ChrisPop

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Well, why would stable coins generate volatility for Ethereum? I don't really see the correlation. Stable coins like USDT or GOLD are just ERC-20 tokens so they don't really affect the ETH price besides the use of gas(ETH) for smart contracts execution which is a good economic factor for Ethereum, but the transactions are not so frequent so I can put more weight on that. Other than this I don't see any other reason why would the use of Ethereum based stable coins increase the volatility of ETH price action.

Polo7

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What's your take on that?

Ethereum and stablecoins, do you think that stable coins like usdt has huge impact over ethereum price?

Do you think that stablecoins cousing ethereum high Volatility?

Do you think the stable coins are good for ethereum?

My opinion:
I think if there is higher demand to stablecoins then the ethereum price will go up.

Topic: Ethereum and stable coins like usdt - page 2. (Read 289 times)