On stablecoins - page 3. | Bitcointalksearch.org

deisik

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Quote from: Lanatsa on April 21, 2019, 02:50:38 PM

When it comes to volatility then there no question about that and thats why they are called "stable coins" because price has no volatility at all. Cheesy

Technically, it is not quite so

If these coins are traded (since otherwise how you would buy them), the law of supply and demand is applicable to them as well. So their value oscillates around parity but there can certainly be sudden volatility just like with any other coin out there. Stable coins which use market means to provide stable value are more susceptible to this kind of volatility and people use it to squeeze profits from such price action

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Quote from: deisik on December 15, 2018, 06:08:26 AM

If you don't know what stablecoins are, read this Wiki article

With that read, there is an ongoing dispute over the advantages of these coins before Bitcoin and other cryptocurrencies. Many suggest that they are not actually backed up by real currencies or other assets as the companies behind them vigorously claim, that they are centralized beyond any hope, and without proper audits they can be printed out of thin air just like fiat money, which would culminate in their hyperinflation, devaluation and failure

For simplicity's sake, let's assume that these accusations are unfounded. So do these coins have any advantages compared to Bitcoin under given assumptions? In these conditions stablecoins essentially become fiat that they are representing, i.e. the US dollar, Euro, or whatever. So the whole thing is not so much about some stablecoin versus Bitcoin but rather a good old question of a fiat currency versus a cryptocurrency

And I guess you already know the answer to that question

Well i can tell you right now another disadvantage they have is that they are tokens using someone else's blockchain. So even if you get a wallet, you still need two different coins in it, the stablecoin itself and the coin of the blockchain it operates with to pay tx fees.

With Tether its more confusing, because there are 3 variations that work on 3 different blockchains: Bitcoin, Ethereum and Tron. The others are all ERC-20 so just Ethereum (gas). You need both coins in your wallet to move a transaction, that is not user friendly.

For the time being they appear to be intended to be used inside an exchange as hedge in trading or such, but not directly like you would use any other crypto...

Lanatsa

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Quote from: Spaffin on April 17, 2019, 03:28:36 PM

I do not think that stable coins should be compared with the usual cryptocurrency. Stable coins are not full-fledged cryptocurrency and can not bring us profit. However, stable coins are very useful, since they significantly increase convenience when working with cryptocurrency. It is better not to use them for long-term storage of their funds. Stable coins should be considered as a kind of buffer zone between a cryptocurrency and a common currency.

They are just useful when there is some market problems like "dumping" where you can secure out your profits or your BTC & Alts to stable coins to avoid further loss and the
convert it back when the market goes to normal again.

Quote from: Adriano2010 on April 21, 2019, 02:25:59 PM

I also don't think stable coins can be compared to crypto coins which are volatile because this is the kind of crypto, but indeed the stable coins have their role on market and who want can keep money on stable coins, but this happen most on traders.

When it comes to volatility then there no question about that and thats why they are called "stable coins" because price has no volatility at all. Cheesy

Adriano2010

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I also don't think stable coins can be compared to crypto coins which are volatile because this is the kind of crypto, but indeed the stable coins have their role on market and who want can keep money on stable coins, but this happen most on traders.

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I do not think that stable coins should be compared with the usual cryptocurrency. Stable coins are not full-fledged cryptocurrency and can not bring us profit. However, stable coins are very useful, since they significantly increase convenience when working with cryptocurrency. It is better not to use them for long-term storage of their funds. Stable coins should be considered as a kind of buffer zone between a cryptocurrency and a common currency.

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Quote from: eroejoe on January 13, 2019, 07:30:21 AM

Quote from: mu_enrico on January 13, 2019, 06:12:30 AM

Quote from: eroejoe on January 13, 2019, 06:02:59 AM

I think that stable coins will not be useful at the end game. Right now stable coins have great value for trading with crypto, but I do not see any other use case for them.

Wut? How about to use it for international trade? How about for minimizing volatility?
Assumed that the 3rd party vault really store the underlying asset and it's being audited continuously, this tech is quite useful.

Stable coin takes everything bad from fiat, and takes everything bad from crypto... With too many points of failure. For fiat to fiat payments cryptos will never be better choice

Yeah, but there are also decentralized stable coins

Which, as I wrote earlier, are a completely different animal. Though I should admit that somehow I expected a little more from them initially. More specifically, I looked into Dai (being first mentioned in this post) as well as BitShares. At first I thought they were a good thing (expecting it to be something like you have at Bitfinex with only 25% of collateral required). But with these coins (or rather tokens), you have to provide over 150% of collateral in the underlying which makes the whole idea stillborn (well, at least to me)

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Quote from: mu_enrico on January 13, 2019, 06:12:30 AM

Quote from: eroejoe on January 13, 2019, 06:02:59 AM

I think that stable coins will not be useful at the end game. Right now stable coins have great value for trading with crypto, but I do not see any other use case for them.

Wut? How about to use it for international trade? How about for minimizing volatility?
Assumed that the 3rd party vault really store the underlying asset and it's being audited continuously, this tech is quite useful.

Stable coin takes everything bad from fiat, and takes everything bad from crypto... With too many points of failure. For fiat to fiat payments cryptos will never be better choice.

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Quote from: TheReverend on December 16, 2018, 06:59:13 PM

i think top coin from 1 to 50 can be say stable coin, because price movement are slowly and also follow bitcoin price.
not like other coin,while btc is dumping they pump, but you can make great profit it you have a great timing to buy.

I don't think it's considered stablecoins. Some of the top 50 cryptocurrencies are not backed by Fiat currency or other tangibles. Maybe we can say Bitcoin and ethereum are stablecoins so as ripple since they can directly traded to Fiat to avoid the price volatility of crypto.

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Quote from: eroejoe on January 13, 2019, 06:02:59 AM

I think that stable coins will not be useful at the end game. Right now stable coins have great value for trading with crypto, but I do not see any other use case for them.

Wut? How about to use it for international trade? How about for minimizing volatility?
Assumed that the 3rd party vault really store the underlying asset and it's being audited continuously, this tech is quite useful.

eroejoe

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I think that stable coins will not be useful at the end game. Right now stable coins have great value for trading with crypto, but I do not see any other use case for them.

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Since we have struggled by fluctuations in 2018, it is not a suprising thing to see such alternatives or promises on the market. However, you can't control or make stable enoug price of a coin only by support of a company which is not known or trusted. As we experienced in some years, even central banks can't totally control exchange rates of a fiat currency and a financial crisis happens periodically.

deisik

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Quote from: ?? on ??

Banks accepting bitcoin or other stuff is not "impossible". They are already working with ripple and using their blockchain to send money from one place to another already, ripple made sure of that and right now there are many banks that have contracts with Ripple for that system. Which means banks are already interested in blockchain technology, even bank of america who speaks badly about bitcoin all the time has blockchain patents.

It means the mass adoption of crypto in banks is not that far away, if you mean by this summer yeah it won't happen but I don't doubt in 10 years time we will have bitcoin as a currency in bank accounts as well. Right now, I have my local fiat in my bank account and with it I can get dollars, euroes, basically almost all fiat in the world and with that in mind I don't doubt bitcoin will be added to that as well.

Are you sure you posted your reply in the right thread?

Regardless, I don't think that banks are so much against crypto (contrary to what many people think here). If it helped boost their profits, they would without doubt use it. But here's the catch. It is not up to banks to decide whether they are going to accept crypto (e.g. into deposit accounts). Right now, we can't even have a single fucking ETF (in America, at least) as regulators are reluctant to change their views on crypto (too volatile, too much manipulation going on). So it may take a little longer until banks are in fact allowed to work with cryptocurrencies like fiat

superstarbtc

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2019 is the year of stable coins like the way we have seen 2017 and 2018 the year of icos this year we see many stable coins from all organisations and all walks of life

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Quote from: Snaic on January 04, 2019, 01:46:44 AM

I consider stable coins not as a full-fledged cryptocurrency, but as auxiliary coins for ease of use of cryptocurrency. Stable coins can not be profitable as a regular cryptocurrency, but it is generally very useful because it creates ease of use of cryptocurrency. In practice, this is a buffer between a cryptocurrency and a common currency or between different types of cryptocurrencies and, as a rule, funds are kept in stable coins temporarily, until a certain expected circumstance occurs.

different from me, that in crypto there is no stable coin, of course it makes traders not interested. because with high volatility there are many opportunities to get rich in a short time

deisik

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Quote from: Snaic on January 04, 2019, 01:46:44 AM

I consider stable coins not as a full-fledged cryptocurrency, but as auxiliary coins for ease of use of cryptocurrency. Stable coins can not be profitable as a regular cryptocurrency, but it is generally very useful because it creates ease of use of cryptocurrency. In practice, this is a buffer between a cryptocurrency and a common currency or between different types of cryptocurrencies and, as a rule, funds are kept in stable coins temporarily, until a certain expected circumstance occurs

From my perspective, they are of no particular use. Here I refer to centralized stable coins which are issued by exchanges (or via exchanges proxies), for example, Tether which has Bitfinex behind it. As many posters already said, they give a feeling of safety (safety from volatility), something which the dollar in your account would provide, but it is a false feeling as they are as risky as keeping your money in exchange account itself. If you really want to hedge against volatility, you should use other tools

Decentralized stable coins, on the other hand, is a completely different animal

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2019 is the year of stable coins most of the stable coins are coming up in every country stable coins for government organisations to financial institutions stable coins is good exposure to crypto community

Snaic

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I consider stable coins not as a full-fledged cryptocurrency, but as auxiliary coins for ease of use of cryptocurrency. Stable coins can not be profitable as a regular cryptocurrency, but it is generally very useful because it creates ease of use of cryptocurrency. In practice, this is a buffer between a cryptocurrency and a common currency or between different types of cryptocurrencies and, as a rule, funds are kept in stable coins temporarily, until a certain expected circumstance occurs.

deisik

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Quote from: Burogh on January 04, 2019, 01:24:45 AM

I wish in near future, banks will accept crypto deposit at least bitcoin or top 10 crypto. If bitcoin accepted by banks, i think we dont need stable coin anymore and crypto become commodity or investment instrument. If this happen, i think government can regulate cryptocurrency market and investor will more confident to invest in crypto

It's not going to happen

I mean, not in the near future. And if it is going to happen in the end, fiat banks won't be relevant already. When Bitcoin takes off for real and goes mainstream, you would need banks like a fifth wheel. Just in case, you wouldn't need stablecoins then, either. We need banks because we need fiat but if Bitcoin becomes that fiat (i.e. replaces it), banks will no longer be required as Bitcoin already has a "bank" built in or, to put it differently, it is a bank in its own right

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I wish in near future, banks will accept crypto deposit at least bitcoin or top 10 crypto. If bitcoin accepted by banks, i think we dont need stable coin anymore and crypto become commodity or investment instrument. If this happen, i think government can regulate cryptocurrency market and investor will more confident to invest in crypto

deisik

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Quote from: o_e_l_e_o on December 30, 2018, 08:25:35 AM

Quote from: deisik on December 29, 2018, 09:55:49 PM

That said, technically and from a legal point of view (well, at least as I see it) Bitfinex and Tether are not the same even if the same dudes are behind them.

I mean, yes, legally they are different companies, but they are different companies ran by the same people out of the same offices and are intrinsically linked. Any new Tether that is printed enters the market via Bitfinex, and any Tether that is removed is also done via Bitfinex. If it turns out Tether having been lying this whole time (which I think they are, why else would they consistently refuse an audit?) and are insolvent, then it's almost a given that Bitfinex is also insolvent. Your statement about a bank run is spot on, which would likely result in them ceasing withdrawals and many people losing their coins

This is definitely a possible scenario

According to which you basically assume that the guys behind Tether and Bitfinex are searching for ways to steal simple traders' money and get away with it. Again, this is possible but not very likely because there is no interest for the beneficiaries to scam since this is what reckless printing of tethers ultimately amounts to. On the other hand, being legally different entities may help a lot if there is an external attack on either one (by SEC or their likes) as in that case they can get rid of any without seriously affecting the end users

For example, if things go wrong for the exchange, they can quickly move the exchange funds through Tether and start a new exchange without losing a coin. Everyone and his dog would know that it will be six of one and half a dozen of the other but legally it won't be so

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