FORBES: Stablecoins are the holy grail of cryptocurrencies

ZaBelyi

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Quote from: EvaGC on March 13, 2018, 07:02:49 AM

«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.

Coins like Bitcoin and Ethereum and highly volatile. On any given day, it is common to see an increase to 10-20% or even a decrease. That makes using most cryptocurrencies for daily transactions inconvenient. Imagine paying $5 for your flat white (my coffee of choice) today and finding out tomorrow that it should have been $4. Price changes like that are shocking for a consumer. The adoption of stable coins will be be a catalyst to the new decentralized internet becoming mainstream.»

https://www.forbes.com/sites/shermanlee/2018/03/12/explaining-stable-coins-the-holy-grail-of-crytpocurrency/#171d177d4fc6

Quite interesting crownie war anime with alithina. Apparently Stablecoins has brought you big income times you compare his so sublime.

SGToken

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Activity: 462

Merit: 100

I don't see the meaning of investing in stable except as a temporary holding place, like USDT. Someone please enlighten me.

hase0278

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Quote from: adolf512 on March 13, 2018, 07:09:12 AM

I'm interested in how you can stabilize the price of a coin, if it is based on a decentralized system?

A coin will stabilize even if it is based on a decentralized system when it is constantly being used for buying and selling at the same time with balance. I think there are some coins out there that are good to accept as payment since they rarely moves. Although that is the case, a true stable coin which does not fluctuate at all isn't decentralized but it would surely be a centralized one because volatility is always there on the free market.

Ix

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Activity: 218

Merit: 128

Quote from: nguyenhoven on March 13, 2018, 07:32:02 AM

I see great use cases of stable coins, but I'm wondering what can be the business model behind them. As due to the stable prices and 1:1 reserves they can't earn on the project.

The business model is you don't lose half your assets in daily swings like with projects you "earn" on.

bitcoinsc

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Activity: 439

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Bitpay allows merchants to accept crypto and send straight to the bank.

nguyenhoven

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Activity: 248

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Quote from: EvaGC on March 13, 2018, 07:02:49 AM

«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.

Coins like Bitcoin and Ethereum and highly volatile. On any given day, it is common to see an increase to 10-20% or even a decrease. That makes using most cryptocurrencies for daily transactions inconvenient. Imagine paying $5 for your flat white (my coffee of choice) today and finding out tomorrow that it should have been $4. Price changes like that are shocking for a consumer. The adoption of stable coins will be be a catalyst to the new decentralized internet becoming mainstream.»

https://www.forbes.com/sites/shermanlee/2018/03/12/explaining-stable-coins-the-holy-grail-of-crytpocurrency/#171d177d4fc6

I see great use cases of stable coins, but I'm wondering what can be the business model behind them. As due to the stable prices and 1:1 reserves they can't earn on the project.

tdeannova

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this is not a confusing or fearful thing, if everyone has known crypto. the most important thing is at the time of purchase something conversion from crypto is correct and referring to the price when the day he made the purchase, I think that is fair and can be understood by buyer.

adolf512

full member

Activity: 532

Merit: 101

Quote from: EvaGC on March 13, 2018, 07:02:49 AM

«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.

Coins like Bitcoin and Ethereum and highly volatile. On any given day, it is common to see an increase to 10-20% or even a decrease. That makes using most cryptocurrencies for daily transactions inconvenient. Imagine paying $5 for your flat white (my coffee of choice) today and finding out tomorrow that it should have been $4. Price changes like that are shocking for a consumer. The adoption of stable coins will be be a catalyst to the new decentralized internet becoming mainstream.»

https://www.forbes.com/sites/shermanlee/2018/03/12/explaining-stable-coins-the-holy-grail-of-crytpocurrency/#171d177d4fc6

I'm interested in how you can stabilize the price of a coin, if it is based on a decentralized system? How do you know if a coin is truly underpinned by a dollar or gold?

cryptorTUX

member

Activity: 238

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To be honest my friend, thats nothing new. And this is the reason we've seen bitcoin and other major cryptocurrencies are seen mostly as an asset and as an investment because if you buy cup of coffee for like 0.01btc today and have to bay 0.0015btc tomorrow or even o.005btc tomorrow well you get it better to hold than to spend. We need currency that is less volatile thats true, but lets take a look at USDT, do you see it working? Of course not since there is central authority that have to be trusted which is where we end up with collateral cryptocurrencies and they can keep the peg most of the times but they can crush as well. It's hard to find balance in technology when everything is done with trade offs.

EvaGC

member

Activity: 476

Merit: 11

«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.

Coins like Bitcoin and Ethereum and highly volatile. On any given day, it is common to see an increase to 10-20% or even a decrease. That makes using most cryptocurrencies for daily transactions inconvenient. Imagine paying $5 for your flat white (my coffee of choice) today and finding out tomorrow that it should have been $4. Price changes like that are shocking for a consumer. The adoption of stable coins will be be a catalyst to the new decentralized internet becoming mainstream.»

https://www.forbes.com/sites/shermanlee/2018/03/12/explaining-stable-coins-the-holy-grail-of-crytpocurrency/#171d177d4fc6

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