Topic: Increase in stable coins adoption might just be the key to crpyto dominance. (Read 608 times)

I don't see anything wrong with holding stable coins because this is pegged to the USD and it does add any much value to the crypto market. We need to focus on Bitcoin which is the major in the market and we could make something profitable from it. Since the emergence of stable coins, people have been having options on swapping their coins to it so that the market volatility would not affect any of our holdings after we have decided to stay off volatile tokens. Stable coins like USDT are good to hold and they have a strong network based that keep investors on a more safer arena with excess fund been invested in Bitcoin.

stablecoin exist just to give convenience of bridging fiat to cryptocurrency and thats fine also most of these stablecoin are either transparent or audited anyway.
I think they are good for people that tries to trades or invest after all we need some form of asset that doesn't have as much volatility as cryptocurrency in general and stablecoin just works for that.
the fact that tether USDT so popular and even has that big of a market cap thanks to the fact that people keep using it across various exchanges whether its cex or dex its the same stablecoin are still being used widely for those that tries to avoid the volatility, it utilizes cryptocurrency at its core so its fine I guess it goes to demonstrate that the technology of a blockchain could definitely be used for digitalizing current conventional and traditional fiat's paper money.
considering that many countries are preparing their own CBDC i think i can see the future where many governments are trying to go that way also to reduce carbon footprints.
it indeed cannot dominate even if it has big market cap its just digitized fiat at the end of the day.

There is some certain thing that what arguing but based on your own explanation you are right, based on your theory so what I want to let us know you that a stable coin have not been considered in any way for buying and Selling of goods and services, so those Mastecard  and  Visa card you listed can be issued from Bank why stable coin from Bank, so it is not possible for using a stablecoin for payment especially in a supermarket or any other place except that it is person that knows or demanded to trade with stablecoin

Stablecoins are a buffer connecting fiat and cryptocurrency. At its core, it is fiat, but in the world of cryptocurrency. Therefore, although stablecoins are a great help for participants in the cryptocurrency market, they are not cryptocurrency. The proliferation of stablecoins cannot increase their value. But since they make it easier to work with cryptocurrency, people's trust in cryptocurrency should increase. But stablecoins cannot dominate over cryptocurrencies. These are completely different financial assets.

The main usage of stablecoins is, indeed, to escape volatility. Nevertheless, specifically, cryptocurrency is famous because volatility is quite untrue. It does not gain popularity merely because it is volatile, but there are other aspects. Volatilities are rather an inherent aspect in its current form, so it cannot be the aspect of the cause in which it leads to popularity.

People do not need to experience volatility to "enjoy" or use cryptocurrency. It is also true, that in some countries, stablecoins are utilized because simply there are use cases, so you see fiat is not always convenient.

I would guess that it wouldn't be all that bad, I mean it looks like it could be something good to increase the adoption. I do agree that it is not all that bad, and I agree that it will definitely go to a level where it could benefit everyone, but that doesn't mean that we are not going to end up with something that would be greater for adoption, it will definitely help.

All those people who want to get into crypto, or start accepting crypto but fear the volatility could end up using this one and they would do a lot better. It is still fiat in a sense and the price is still just dollars, so nothing changes, yo udo not get any volatility at all. This allows them to get into crypto world without risking anything at all. This should be the most important part because there are tons of companies who do not get into crypto at all fearing that they will do a lot worse, and I believe that we are going to end up with something that would benefit the adoption rate.

If you go to Turkey, where the local government issued currency isn't fairing so good, you'll see exchange offices that offer to fill your crypto wallet with Tether USD in exchange for cash. This was super interesting to see. Stablecoin usage is indeed something in high demand, and the ease of use crypto offers compared to traditional banking to those familiar with technology is indeed noteworthy. However, there's only certain audiences that would be more interested in that. For instance, if I live in a developed country, I can transact money around the world  and access very good exchange rates for different FIAT currencies just with a bank account and a couple of online services.

For crypto to take over as a viable payment method in developed countries, something better than just stablecoins would have to exist. And given bitcoin's decentralized nature though, I don't think establishing institutions would help. What might help bitcoin receive more adoption is if the financial system would either collapse or implode by establishing even more authoritarian measures than what we face today. But we can't really do much to bring another financial crises on our own. The good (or bad) thing is that they tend to come on their own.

that I feel somehow true, it even good for remmittances, the fact that its available in various blockchain means it can get better utilized than using paypal for remmitances because the cheap fees required.
its not like using ordinary cryptocurrency where the prices also fluctuates as well its just overall good at some specific things.
but of course it kinda sucked for investment even the staking aren't really great at making the profits.
there are also many controversies surrounding this coin though.
I personally when it comes to investment i will invest in crypto like bitcoin and ethereum and consider stablecoin just a tool.

Merchants are avoiding PYUSD simply because they had or heard bad experiences from the client of Paypal.  Many of Paypal users know that this company freezes accounts and even suspend them, so they may probably think the same thing may happen with PYUSD since its network can freeze and confiscate fund in any accounts/addresses by simply blocklisting it to the network..

Stable coins have their uses and that is undeniable, as they allow you to move back to a cryptocurrency that behaves similarly to fiat on the moments you may not like to be invested in this market as it is too volatile for your tastes, however I do not really see too much of a point to use stable coins in the same way you would use your fiat, since in that case it would be better to just use your fiat currencies instead, however I could see some people doing this and it could be one of the necessary steps on our quest to use bitcoin in our everyday lives.

Maybe they only think about more safer option to choose for since price cannot possibly go down since they only know that price of this coins is stable and they are not afraid to let it rot on their wallets. But they forget the certain aspect on why cryptocurrency became famous and one reason for that is due to its volatility. Many people love to see that since its more profitable than any other asset. So if they choose stable coins over than that for sure they cannot enjoy crypto and other people might choose fiat since its more convenient to use.

I like the current state of stable coin and I think there's nothing to change with it as I don't really trust them since they could still go down if they are affected on some big issues that can question there existence especially if government will take a look at them and declare them as illegal.

Stable cryptocurrencies certainly don't have the potential to positively or negatively affect the dominance rate in the cryptocurrency markets in any way because their intended use in today's conditions is only to trade against fiat currencies. Moreover, to make an evaluation according to today's standards, we see that many people use cash, credit card, debit card or check for their daily expenses. In other words, while cryptocurrencies aren't yet fully widespread, no individual uses stable cryptocurrencies as a means of payment method and they aren't accepted as a payment method in many businesses.

On the other hand, we see that stable cryptocurrencies have achieved an important ranking in the cryptocurrency markets due to their transaction volume but this isn't because they are used for earnings or investment but because they represent fiat currency in trading pair parities against all cryptocurrencies. So, in a possible scenario even if any of the stable cryptocurrencies ranks first in this ranking, this will only be because it is used in many transaction parities. It wouldn't be right to think that these cryptocurrencies which have no features or investment opportunities other than representing fiat currency will ever gain leadership in terms of dominance or determine the direction of the market.

Would be ironic if cryptocurrency dominance is led and caused by stablecoins. As others already suggest, this is misleading when we try to compare card network settlement rate with stablecoins volume and transaction rate since the metrics are somewhat unclear.

However, we must note that indeed stablecoins do offer more flexibility and transparency, for example, the fact many people can easily exposed to them and utilise them directly is convenient. In some countries where you said it developed one, this exposure surely makes the alternative payment/currency within the market viable to be used. But, cryptocurrency dominance isn't likely to be specifically caused by significant stablecoins adoptions.

stablecoin has been indeed having massive growth in term of market capitalization that it far surpass many of the coins out there that its actually quite awesome on its own, even paypal a large company that dominates their own fields are now interested in getting that share of massive growth in stablecoin.
I do think that stablecoin can indeed helps growth of cryptocurrency market capitalization overall by utilizing the technology while also keeping the value from fluctuating that much.
overall as you said it could be the key to crypto dominance, but the benefits for cryptocurrency in general specifically bitcoin and etheruem i think can still be argued.

Stablecoins are now mainly used to circumvent sanctions or not to keep funds in banks. People do not trust banks very much now. Therefore, if a person has stable coins, it absolutely does not mean that he will buy cryptocurrencies. It is simply a more reliable means of storing value

You can say that stablecoin does help the crypto market during pumping and all, but in the real world, they are not widely accepted compared to Visa and Mastercard. No one is accepting stablecoins in the real world for commodities etc., except a small percentage of crypto sites and casinos. Stablecoins are a bubble; look at the total circulating supply of USDT and compare it to 3 to 4 years ago. They are just minting new USDT along with other stablecoins. Don't you think this could be a scam or something? Stablecoins only mimic the fiat and can be used to store your profit for the short term.
With all the regulations in place, crypto payments are not a global phenomenon. The US government and SEC are going to bust a few scams in the near future. I think CBDC might be the way forward in this regard, along with other countries' stablecoins, but then there will be no privacy of transactions.

When many people understand that crypto fluctuations are so high that saving assets in stable coins with long-term goals is the best solution to avoid losses, moreover, most companies that own stable coins have a reputation and legality that makes investors make stable coins the main choice.

Competition will continue to occur in the economic sphere in all countries in several sectors, including in the currency and stablecoin development sector. CBDC is part of a project that will be developed by several countries that have begun to experience progress in the crypto economy sector, because this is being done to make it easier for people to use currency. Even though many people already know about currencies in the crypto space, they can also be used easily by everyone. So competition in any case will still exist and will continue to occur in all sectors in order to be the best and also to attract more users.

The increase in crypto dominance is related to money flowing into crypto. Put more plainly it means a lot of people buy crypto and keep or use it. I think it's useless to have lots of stablecoins. Because the stable coin is backed 1:1 by USD. This is the same as the digital dollar, which does not affect crypto dominance though. unless the stablecoin is used to buy crypto, then the crypto is stored or used en masse, such as for shopping, payment and investment. However, for payment, I don't think it can run smoothly. Because many regulations in every country still prohibit crypto as a payment. If crypto is able to become a payment rival like visa and credit cards, I think crypto's dominance can increase exponentially.

Are there any updates on the stablecoin dominance here? I think it has been a while but there's no significant impact that I have seen or news about it. It's always going to be overpowered by the current payment processors I think. It's definitely a different league IMO if we're going to talk about that. Cryptocurrency has a league of its own.