On stablecoins | Bitcointalksearch.org

TrevorS

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Quote from: deisik on May 22, 2019, 03:15:57 PM

Quote from: Vishnu.Reang on May 21, 2019, 11:11:31 AM

I don't really understand the purpose in having all these stable coins. If you don't like the volatility of the cryptocurrencies such as Bitcoin and Ethereum, then just convert your coins to fiat currency. Why bother converting them to stablecoins such as USDT or TUSD?

The answer is easy

If you convert your cryptocurrencies to fiat (like dollars or whatever), you may have to pay hefty fees trying to withdraw the fiat proceeds (and wait for days until you receive the funds). But with centralized stable coins, say tethers, you can completely bypass the fiat system (read, banks and all that pain in the ass that comes with them) and move your tethers either to your Tether account (or how it is called) or to another exchange where they are accepted. Essentially, these coins are working like fiat while without making use or having to use the banking system (under whatever name)

All right. The stable of the coin is precisely t thanks to which it is possible to quickly and with minimal fees fixed in a stable currency. However, the centralized side of these coins confuses me. It turns out that we, in the distance of cryptocurrencies, depend on two factors at once. The first is the project itself producing a stable coin, as Tezer knows, there are quite a few conflicts with the law that are still being resolved. The second factor is the exchange on which we speculate with this coin.

deisik

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Quote from: Sithara007 on October 06, 2019, 02:36:08 AM

Quote from: deisik on October 05, 2019, 08:22:41 AM

Whether withdrawing to Tether is of any use to you personally depends on your use case

Indeed, if you want to purchase something, then withdrawing to Tether doesn't make a lot of sense unless your seller is willing to accept tethers. But this is not what tethers and, more broadly, stable coins (both centralized and decentralized) are used for. There are two major uses for stable coins. The first is to effortlessly move funds between exchanges without exposing yourself to volatility, while completely bypassing the banking system as a nice bonus of sorts. And the second use is about preserving the dollar value of your cryptocurrency stash without exposing yourself to third party risks (that mostly refers to stable coins based on cryptocurrencies like DAI)

Many thanks for the very detailed explanation. I guess Tether won't be of much use for me, because I don't move my assets from one exchange to another very often. And I don't care much about volatility, as I always measure my assets in terms of BTC (and not in terms of USD). I guess this is one of the advantages of being a long-term holder, rather than being a cryptocurrency trader

You're welcome too!

Quote from: Sithara007 on October 06, 2019, 02:36:08 AM

This also proves why the government restrictions on the cryptocurrency trading is not very successful. The cryptocurrency users are always one step ahead of the government, and they have made use of the loophole by using stablecoins instead of fiat cash. The only thing that should concern these users is the frequent hacks targeting the cryptocurrency exchanges. There is always a chance of someone hacking the exchange and stealing the user funds

This issue, i.e. third party risks, can also be alleviated to a degree

It is called hedging, and I explained how it works on numerous occasions already (even in this very thread). In fact, you can use hedging not only for reducing your risks in this realm (i.e. someone hacking the exchange and stealing the money) but pretty much as an effective and efficient substitute for stable coins themselves (though it is not applicable to every exchange out there). In essence, hedging allows you to kill two birds with one stone (and then pick up that stone for further bird shooting)

Sithara007

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Quote from: deisik on October 05, 2019, 08:22:41 AM

Whether withdrawing to Tether is of any use to you personally depends on your use case

Indeed, if you want to purchase something, then withdrawing to Tether doesn't make a lot of sense unless your seller is willing to accept tethers. But this is not what tethers and, more broadly, stable coins (both centralized and decentralized) are used for. There are two major uses for stable coins. The first is to effortlessly move funds between exchanges without exposing yourself to volatility, while completely bypassing the banking system as a nice bonus of sorts. And the second use is about preserving the dollar value of your cryptocurrency stash without exposing yourself to third party risks (that mostly refers to stable coins based on cryptocurrencies like DAI)

Many thanks for the very detailed explanation. I guess Tether won't be of much use for me, because I don't move my assets from one exchange to another very often. And I don't care much about volatility, as I always measure my assets in terms of BTC (and not in terms of USD). I guess this is one of the advantages of being a long-term holder, rather than being a cryptocurrency trader.

This also proves why the government restrictions on the cryptocurrency trading is not very successful. The cryptocurrency users are always one step ahead of the government, and they have made use of the loophole by using stablecoins instead of fiat cash. The only thing that should concern these users is the frequent hacks targeting the cryptocurrency exchanges. There is always a chance of someone hacking the exchange and stealing the user funds.

bitcon

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Stablecoin is a litte defirent than bitcoin and any other cryptocurrency because they say it is way stable and less inflation unlike fiat money that there a lot of inflation.

Many stablecoins are criticized precisely for the lack of a philosophy of "traditional" cryptocurrencies. However, they help investors to trade. For example, a trader can wait a while for one cryptocurrency to depreciate and transfer funds to stablecoin, where you can safely expect the market to grow again. In this case, you can bind not only to fiat currency but also to assets like precious metals, oil or something else.

Pab

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Stable coins like Tether are simply very useful.Tether and other stable coin are offering easy way to exchange crypto to fiat alternative.And stable coins are widely used for arbitrage
But hold for a while because of Libra regulators begin to watch that market
Take a look at that article
FSB chair Quarles says rise of stablecoins could pose regulatory challenges

https://www.theblockcrypto.com/linked/42046/fsb-chair-quarles-says-rise-of-stablecoins-could-pose-regulatory-challenges?utm_source=newsletter&utm_medium=email&utm_campaign=2019-10-04

deisik

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Quote from: Pearls Before Swine on October 05, 2019, 09:14:42 AM

Quote from: deisik on May 25, 2019, 01:08:47 PM

That these so-called stable coins are just a crappy substitute for fiat, with fiat being a better option if you want to pull out.

All right, I guess you just answered my question then. I hear so much about them that I've often wondered what the big deal is. Their trading volumes are higher than btc if I'm not mistaken, but that makes sense if there are pairs of crypto that trade with USDT or another stable coin. I wouldn't assume that any trader really wants to own any of the stable coins for the long term

You're welcome, bro

The problem with stable coins is that they are not tested in extreme market conditions yet. That mostly refers to stable coins based on cryptocurrencies since we don't really know how stable they are going to be when the underlying cryptocurrency loses like 90% of its value overnight (or just fast enough). In other words, putting your entire wealth in one such coin is like playing with dynamite. If things go massively awry, you are likely to fare a lot better in the long run if you just keep the underlying cryptocurrency (say, Ethereum)

The case with centralized stable coins like Tether seems to be pretty obvious on its own as the stability of these coins depends entirely on the company issuing them (read, whether they are in fact backed up by anything). And as recent events have shown (I refer to Bitfinex "borrowing" dollars backing up tethers, which effectively meant that the latter were only partially backed up by the former), third parties cannot be trusted in these matters because it is only a matter of time till they start to abuse people's trust in them

Pearls Before Swine

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Quote from: o_e_l_e_o on December 15, 2018, 07:33:18 PM

If we are assuming, as you say, that these stablecoins are fully backed up by fiat currency, then all you are doing is pushing the problem of printing out of thin air and inflation back a step. Instead of the crypto itself being printed out of thin air, the fiat currency that is pegged to is instead. The end result for the crypto in question is still the same - devaluation.

Don't know who bumped this thread since I haven't finished reading it yet but I'm glad they did, since I obviously missed it. You make an excellent point about the case where a stable coin is pegged to an inflationary currency.

Traders generally dont hold stable coins for the long term, do they? Ive always thought they were simply intermediate cryptos used instead of cash when they trade their bitcoin or other *real* crypto for a cash equivalent. There would be no real need to own a stable coin that I can see, since you can't spend it and can't do much with it aside from buying other cryptos. That might change if and when Libra is introduced, but as of right now those stable coins are just a proxy for fiat. Right?

Quote from: deisik on May 25, 2019, 01:08:47 PM

That these so-called stable coins are just a crappy substitute for fiat, with fiat being a better option if you want to pull out.

All right, I guess you just answered my question then. I hear so much about them that I've often wondered what the big deal is. Their trading volumes are higher than btc if I'm not mistaken, but that makes sense if there are pairs of crypto that trade with USDT or another stable coin. I wouldn't assume that any trader really wants to own any of the stable coins for the long term.

deisik

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Quote from: Sithara007 on October 05, 2019, 06:13:52 AM

Quote from: deisik on May 22, 2019, 03:15:57 PM

Quote from: Vishnu.Reang on May 21, 2019, 11:11:31 AM

I don't really understand the purpose in having all these stable coins. If you don't like the volatility of the cryptocurrencies such as Bitcoin and Ethereum, then just convert your coins to fiat currency. Why bother converting them to stablecoins such as USDT or TUSD?

The answer is easy

If you convert your cryptocurrencies to fiat (like dollars or whatever), you may have to pay hefty fees trying to withdraw the fiat proceeds (and wait for days until you receive the funds). But with centralized stable coins, say tethers, you can completely bypass the fiat system (read, banks and all that pain in the ass that comes with them) and move your tethers either to your Tether account (or how it is called) or to another exchange where they are accepted. Essentially, these coins are working like fiat while without making use or having to use the banking system (under whatever name)

But withdrawing to Tether is of no use, right? If I want to purchase something, and I need fiat currency for that, then obviously I need to cash out these Tether tokens using any of the exchanges or peer2peer platforms. And once again, this process is going to cause unwanted delays. The conversion to Tether will be adding another unnecessary layer and the delay associated with it

Whether withdrawing to Tether is of any use to you personally depends on your use case

Indeed, if you want to purchase something, then withdrawing to Tether doesn't make a lot of sense unless your seller is willing to accept tethers. But this is not what tethers and, more broadly, stable coins (both centralized and decentralized) are used for. There are two major uses for stable coins. The first is to effortlessly move funds between exchanges without exposing yourself to volatility, while completely bypassing the banking system as a nice bonus of sorts. And the second use is about preserving the dollar value of your cryptocurrency stash without exposing yourself to third party risks (that mostly refers to stable coins based on cryptocurrencies like DAI)

timerland

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Quote from: Sithara007 on October 05, 2019, 06:13:52 AM

Quote from: deisik on May 22, 2019, 03:15:57 PM

Quote from: Vishnu.Reang on May 21, 2019, 11:11:31 AM

I don't really understand the purpose in having all these stable coins. If you don't like the volatility of the cryptocurrencies such as Bitcoin and Ethereum, then just convert your coins to fiat currency. Why bother converting them to stablecoins such as USDT or TUSD?

The answer is easy

If you convert your cryptocurrencies to fiat (like dollars or whatever), you may have to pay hefty fees trying to withdraw the fiat proceeds (and wait for days until you receive the funds). But with centralized stable coins, say tethers, you can completely bypass the fiat system (read, banks and all that pain in the ass that comes with them) and move your tethers either to your Tether account (or how it is called) or to another exchange where they are accepted. Essentially, these coins are working like fiat while without making use or having to use the banking system (under whatever name)

But withdrawing to Tether is of no use, right? If I want to purchase something, and I need fiat currency for that, then obviously I need to cash out these Tether tokens using any of the exchanges or peer2peer platforms. And once again, this process is going to cause unwanted delays. The conversion to Tether will be adding another unnecessary layer and the delay associated with it.

One advantage of Tether that I could think of is for usage in countries where crypto to fiat trade is prohibited. And this is one of the reason why the majority of the trade volumes originate from China. And another advantage is that in some of the countries capital gains are not computed when you convert one cryptocurrency to another. You can avoid paying the capital gains tax, as long as you don't sell your crypto for fiat cash.

I know a lot of people that use tether as a great way to keep their assets when they don't want to be gambling with the BTC prices, or they want out of an altcoin.

It's actually a great way to hold coins, especially when you don't want to actually cash out, trading from tether to BTC is a lot easier then going from USD or your regular fiat currency to BTC, and doesn't carry a lot of the fees that fiat conversation has.

Sithara007

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Quote from: deisik on May 22, 2019, 03:15:57 PM

Quote from: Vishnu.Reang on May 21, 2019, 11:11:31 AM

I don't really understand the purpose in having all these stable coins. If you don't like the volatility of the cryptocurrencies such as Bitcoin and Ethereum, then just convert your coins to fiat currency. Why bother converting them to stablecoins such as USDT or TUSD?

The answer is easy

If you convert your cryptocurrencies to fiat (like dollars or whatever), you may have to pay hefty fees trying to withdraw the fiat proceeds (and wait for days until you receive the funds). But with centralized stable coins, say tethers, you can completely bypass the fiat system (read, banks and all that pain in the ass that comes with them) and move your tethers either to your Tether account (or how it is called) or to another exchange where they are accepted. Essentially, these coins are working like fiat while without making use or having to use the banking system (under whatever name)

But withdrawing to Tether is of no use, right? If I want to purchase something, and I need fiat currency for that, then obviously I need to cash out these Tether tokens using any of the exchanges or peer2peer platforms. And once again, this process is going to cause unwanted delays. The conversion to Tether will be adding another unnecessary layer and the delay associated with it.

One advantage of Tether that I could think of is for usage in countries where crypto to fiat trade is prohibited. And this is one of the reason why the majority of the trade volumes originate from China. And another advantage is that in some of the countries capital gains are not computed when you convert one cryptocurrency to another. You can avoid paying the capital gains tax, as long as you don't sell your crypto for fiat cash.

Ozero

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Quote from: wuvdoll on May 28, 2019, 10:24:35 PM

Even if it was 1 to 1 backed by the corporations that claims they are backed by real fiat (which some even came clear about not being 1 to 1 backed anymore so I don't know why they are worth like that) its still not the same with bitcoin. There is always risk of printing more, there is always risk of centralized issues of withdrawing money from the market, and the biggest threat of all there is always an issue of "lol gotcha" of the corporation that reeped the benefits of it and than leave as an exit scam.

Why would anyone prefer stablecoins over bitcoin I don't know, if you want to use regular fiat just use fiat anyway, there is no one stopping you to use dollars for example, that is what many people do, if you want to use bitcoin than use bitcoin but if you use tether for example that is neither as safe as bitcoin nor as accepted as dollars so whats the point.

About five months passed, during this time the idea of creating a stable Libra coin came up, they began to actively discuss this idea and, I see, the general attitude towards stable coins has changed for the better. Yes, and statistics say that the stable USDT coin in terms of trading volume exceeded the trading volume in bitcoins. Cryptocurrency users still began to understand certain advantages and conveniences of stable coins. Of course, stable coins are necessary for people and useful for cryptocurrencies, since they attract attention and interest to it. Stable coins and a common cryptocurrency will occupy each its niche in human financial activity.

wuvdoll

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Even if it was 1 to 1 backed by the corporations that claims they are backed by real fiat (which some even came clear about not being 1 to 1 backed anymore so I don't know why they are worth like that) its still not the same with bitcoin. There is always risk of printing more, there is always risk of centralized issues of withdrawing money from the market, and the biggest threat of all there is always an issue of "lol gotcha" of the corporation that reeped the benefits of it and than leave as an exit scam.

Why would anyone prefer stablecoins over bitcoin I don't know, if you want to use regular fiat just use fiat anyway, there is no one stopping you to use dollars for example, that is what many people do, if you want to use bitcoin than use bitcoin but if you use tether for example that is neither as safe as bitcoin nor as accepted as dollars so whats the point.

Nunoluck

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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

It seems that that coin only has small advantages which is to avoid volatility of cryptocurrency. But this concept is not right. I think we don't need cryptocurrency like that. What we need is a cryptocurrency which really backed by gold or silver where the creation of that coin will be supervised by global institution. So by coin like that we can really replace fiat. In USDT case actually it still useful to guide new investors. I mean is it can attract people who don't have enough braveness to invest in crypto which the price movement is very extreeme. So they will feel more comfortable to use Cryptocurrency.

deisik

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Quote from: Cosbycoin on May 25, 2019, 01:30:39 AM

But I don't have interest in stable coins, and I don't buy them, cause I don't really see any need for it. I just invest in Bitcoin and other cryptocurrencies that fluctuates in price and whenever I want to pull out, I just do so by shifting to dollars quickly

That's what you come to on proper consideration

That these so-called stable coins are just a crappy substitute for fiat, with fiat being a better option if you want to pull out. Another option is using shorts as a hedge (just in case, this is my preferred method of doing things in this department). But this may be not what people think or consider en masse. Besides, you can send these coins (e.g. tethers) to other exchanges (other than Bitfinex, in case of tethers) where they are accepted. Technically, you can send fiat (like dollars or whatever) too, but this is typically cumbersome and rather expensive. So there's at least one use case which accounts and allows for their existence

Cosbycoin

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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

I don't even know what they are made of or how everything works about stable coins, the only thing I know is that you can use the wage your money, just pull it out from Bitcoin and invest in any of those stable coins and your money will stay there for you without you losing or gaining anything as well.

But I don't have interest in stable coins, and I don't buy them, cause I don't really see any need for it. I just invest in Bitcoin and other cryptocurrencies that fluctuates in price and whenever I want to pull out, I just do so by shifting to dollars quickly.

Artemis3

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Quote from: deisik on May 22, 2019, 03:15:57 PM

Quote from: Vishnu.Reang on May 21, 2019, 11:11:31 AM

I don't really understand the purpose in having all these stable coins. If you don't like the volatility of the cryptocurrencies such as Bitcoin and Ethereum, then just convert your coins to fiat currency. Why bother converting them to stablecoins such as USDT or TUSD?

The answer is easy

If you convert your cryptocurrencies to fiat (like dollars or whatever), you may have to pay hefty fees trying to withdraw the fiat proceeds (and wait for days until you receive the funds). But with centralized stable coins, say tethers, you can completely bypass the fiat system (read, banks and all that pain in the ass that comes with them) and move your tethers either to your Tether account (or how it is called) or to another exchange where they are accepted. Essentially, these coins are working like fiat while without making use or having to use the banking system (under whatever name)

Its only a token, you can use a wallet, say ETH for its erc-20 variant, put some eth in it (gas) and store your tethers. Then send them the same way you do with any other coin. It is a little more complicated than bitcoin due to this use somebody else's blockchain.

Fiat vs stable main reason they were made is so that exchanges don't have to follow the "rules" which are far more strict for actual fiat controlled in the country the operate within. An exchange can add a stable coin immediately, while for actual fiat they have to follow a long list of rules and regulations.

Stablecoins seem to do well within an exchange, for hedging trades etc, but poorly for common transactions due to this added complexity. And then there is the whole credibility issue, audits, and what not. A stable coin is technically a token whose value is pegged to some other coin. So if the pegged coin inflates 2%, they have to as well.

KlepZ

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Quote from: deisik on May 22, 2019, 03:15:57 PM

Quote from: Vishnu.Reang on May 21, 2019, 11:11:31 AM

I don't really understand the purpose in having all these stable coins. If you don't like the volatility of the cryptocurrencies such as Bitcoin and Ethereum, then just convert your coins to fiat currency. Why bother converting them to stablecoins such as USDT or TUSD?

The answer is easy

If you convert your cryptocurrencies to fiat (like dollars or whatever), you may have to pay hefty fees trying to withdraw the fiat proceeds (and wait for days until you receive the funds). But with centralized stable coins, say tethers, you can completely bypass the fiat system (read, banks and all that pain in the ass that comes with them) and move your tethers either to your Tether account (or how it is called) or to another exchange where they are accepted. Essentially, these coins are working like fiat while without making use or having to use the banking system (under whatever name)

Though both the currencies are implementing the concept of Stablecoin, yet they have so many similarities and differences between them.
Similarities are: Both the coins are providing security to the investors by protecting them from price crash due to high volatility as per the market conditions.
Both the coins are backed by US dollars and each is providing 1:1 conversion as each coin is redeemed for each US dollar. TUSD is not as popular as USDT due to the late release in the crypto world and hence is unable to gain that much popularity.

deisik

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Quote from: Vishnu.Reang on May 21, 2019, 11:11:31 AM

I don't really understand the purpose in having all these stable coins. If you don't like the volatility of the cryptocurrencies such as Bitcoin and Ethereum, then just convert your coins to fiat currency. Why bother converting them to stablecoins such as USDT or TUSD?

The answer is easy

If you convert your cryptocurrencies to fiat (like dollars or whatever), you may have to pay hefty fees trying to withdraw the fiat proceeds (and wait for days until you receive the funds). But with centralized stable coins, say tethers, you can completely bypass the fiat system (read, banks and all that pain in the ass that comes with them) and move your tethers either to your Tether account (or how it is called) or to another exchange where they are accepted. Essentially, these coins are working like fiat while without making use or having to use the banking system (under whatever name)

shinharu10282016

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Quote from: imstillthebest on May 20, 2019, 08:58:40 PM

Quote from: jrrsparkles on April 22, 2019, 04:40:37 AM

Quote from: incomefromcoins on April 22, 2019, 03:31:00 AM

Most of the stable coins are being developed by big corporate companies like JP Morgan and Bank of America and even government organizations are coming up with stablecoins stable coins are good for the cryptocurrency which brings of dollars in turnover

Which is good and profitable for the one who created it but the investors will not get benefits from it and literally the value of stable coin keep losing even if the prices is approximately one dollar because the value of dollar keep decreasing due to inflation ...

Stable coins has some benefits to a trader/investor and that is to secure or to prevent the value of thier cryptos to go down . This why stable coins are called stable because they are like dollar . It saves you alot of fees and hassel from cashing your cryptos from time to time if you were a kind of person that is conscious about the volatility of the market .

I dont believe that stablecoins can drop much compare to a regular crypto . They can decrease but not too much , same as what you experience on a regular dollar bill .

The stablecoins also has the advantage over projects since most of them are those that started even before the boom in 2017 and that shows how people are still into them despite the markets' ups and downs.

We should probably say these stablecoins will be able to stay no matter what happens to the market since most of them has their own use.

Vishnu.Reang

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Quote from: KlepZ on May 21, 2019, 11:12:59 AM

Stablecoins are the ones whose value remains stable, hence the name(which is one of the benefits of a stable coin), and that is pegged to the value of an underlying asset.
The best stable coins to look forward in 2019 is
Tether (USDT)
TrueUSD (TUSD)
MakerDAO (DAI)

Out of the three you had listed, TUSD is clearly my favorite. They had recently conducted an external audit, which showed that the coin is 100% backed up with cash or cash equivalents. And very soon, we will be able to check the TUSD reserves in real time.

On the other hand, USDT is only 74% backed up with cash (although the promoters are claiming that this is a temporary issue and very soon they will be having full backup. DAI is also facing issues in securing 100% backup. They are even considering to increase the stability fee, so that the deficit will be covered.

wuvdoll

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I think the main reason why they were started was the ease of trading, not for profiting. The main idea was putting dollars vs bitcoin was difficult some people had to withdraw their currencies from the exchanges like binance where fiat was not allowed and put it on places like coinbase and trade it to fiat and do the reverse whenever they want it back on binance.

However, right now there is almost a trillion stable tokens created, everyone and their dog starts a new stable coin, which caused some issues of course but we can't deny that it made it easier to trade fiat vs bitcoin on wherever you want, that is why it was loved. I believe tether people are scammers, I believe there are plenty of stable coin scammers but in the end success only happens after you endure the pain in this business.

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Quote from: shinharu10282016 on May 21, 2019, 11:45:58 AM

Quote from: bonker on May 20, 2019, 03:50:22 PM

For the future everything is important so investing on every table kinds is also helpful for the future right now that is developing with lots of stability that's why the investment process and thoughts will came for the people to invest in this currency also.

Investing is one thing but you have to add more just so you know. Your money won't work for you because if you want that you should've been a millionaire by now.

for stable coins, of course there are those who expect it. one of them is an opportunity to function as a currency to be open. but it needs a role from the government, because to achieve it I think it requires recognition from many countries

Blacknavy

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Cryptocurrencies and cryptocurrencies exchanges are not controlled by states in any way, I don't think many of the companies that must hold 1 USD for each 1 stable coin under normal conditions have enough dollars.

shinharu10282016

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Quote from: bonker on May 20, 2019, 03:50:22 PM

For the future everything is important so investing on every table kinds is also helpful for the future right now that is developing with lots of stability that's why the investment process and thoughts will came for the people to invest in this currency also.

Investing is one thing but you have to add more just so you know. Your money won't work for you because if you want that you should've been a millionaire by now.

KlepZ

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Stablecoins are the ones whose value remains stable, hence the name(which is one of the benefits of a stable coin), and that is pegged to the value of an underlying asset.
The best stable coins to look forward in 2019 is
Tether (USDT)
TrueUSD (TUSD)
MakerDAO (DAI)

Vishnu.Reang

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I don't really understand the purpose in having all these stable coins. If you don't like the volatility of the cryptocurrencies such as Bitcoin and Ethereum, then just convert your coins to fiat currency. Why bother converting them to stablecoins such as USDT or TUSD? I don't trust these stablecoins, due to their association with fiat. They can go down anytime.

deisik

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Quote from: Nuxxorcoin on May 21, 2019, 07:05:41 AM

I think its block the rise of cryptocurrencies. People are starting to flee to fixed coins because they see price reductions. The fact that they exist is a big question mark for me

This is a very shaky reason (and proposal)

If we continue your line of reasoning (starting with the assumption that folks flee to stable coins in order to avoid losses), then we should just ban cashing out as this is what stable coins are about. Essentially, they are a proxy to fiat (as explained in the OP) and refusing people to use them is the same as refusing people to trade as they see fit (i.e. buy and sell what they want and when they want it). If we hypothetically implement what you suggest, that will lead to the death of cryptocurrencies rather than their rise

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I think its block the rise of cryptocurrencies. People are starting to flee to fixed coins because they see price reductions. The fact that they exist is a big question mark for me.

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Quote from: Snaic on May 20, 2019, 10:51:48 PM

No need to look for the disadvantages or advantages of stable coins compared to Bitcoin or other coins. Stable coins are actually digital copies of ordinary currency and are intended only to assist in the use of cryptocurrency. This is not a real cryptocurrency, since it cannot be used for profit. It simply makes it easy to use cryptocurrency and therefore very useful

You are talking about centralized stable coins

But there are other stable coins of a decentralized nature which use smart contracts to keep their value close to parity (say, 1 US dollar) and thus can be considered real cryptocurrencies. And since the parity is obtained via market means versus authoritative fixing (i.e. unlike what Tether and its likes do or are supposed to do), these can in fact be used for earning profits (strictly speaking even centralized stable coins can be used for that purpose too). Obviously, the market mechanism which is used to support parity has some delay before it kicks in and moves the price toward the parity, sometimes there are significant shifts from it which allows for profit earning opportunities to arise

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Quote from: BrewMaster on December 16, 2018, 11:54:08 PM

the biggest problem that i see with stablecoins is that they are centralized and not like fiat centralization, but worse since they are issued by a company that can go under or run away. with fiat at least the whole country has to go under for their fiat to become worthless but the stablecoin the company which has a high risk of going under can do that and the coin can become worthless in an instant!

In most cases most of the stablecoins are made trough bank corporation. Following the banking principle which is mostly against crypto which made it really centralized. You are also right this type of coin can be easily worthless if the management fails to do its job and by that being said crypto still has a more unique approach when it comes to currency and again I love to categorize such coins as a sh*tcoin

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Quote from: imstillthebest on May 20, 2019, 08:58:40 PM

Quote from: jrrsparkles on April 22, 2019, 04:40:37 AM

Quote from: incomefromcoins on April 22, 2019, 03:31:00 AM

Most of the stable coins are being developed by big corporate companies like JP Morgan and Bank of America and even government organizations are coming up with stablecoins stable coins are good for the cryptocurrency which brings of dollars in turnover

Which is good and profitable for the one who created it but the investors will not get benefits from it and literally the value of stable coin keep losing even if the prices is approximately one dollar because the value of dollar keep decreasing due to inflation ...

Stable coins has some benefits to a trader/investor and that is to secure or to prevent the value of thier cryptos to go down . This why stable coins are called stable because they are like dollar . It saves you alot of fees and hassel from cashing your cryptos from time to time if you were a kind of person that is conscious about the volatility of the market .

I dont believe that stablecoins can drop much compare to a regular crypto . They can decrease but not too much , same as what you experience on a regular dollar bill .

for now maybe we won't find a stable coin. different if cryptocurrency is recognized by most countries in the world, it is certainly volatile unlike today. and it could be acting like a dollar now, which one is the current currency

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Quote from: davis196 on December 16, 2018, 01:54:13 AM

Stablecoins have no advantages over fiat and no advantages over crypto.They are used only as a ponzi scheme and scam projects.They have no other purpose than that.End of discussion. Grin

By the way,Wikipedia can't be used as a trusted source of information. Grin

I wouldn't generalize all the stablecoins. There are a few reliable ones out there, which are backed up by assets in fiat cash (either hard cash, or cash equivalents). But as the ongoing Tether-Bitfinex drama has shown, it is wrong to have an assumption that stablecoins such as USDT are 100% reliable. Look at what happened to USDT. As per the information given to the authorities, Tether is only 74% backed up with real assets. This is despite the fact that they had always claimed that every USDT token is backed up by US Dollar, 1 to 1.

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No need to look for the disadvantages or advantages of stable coins compared to Bitcoin or other coins. Stable coins are actually digital copies of ordinary currency and are intended only to assist in the use of cryptocurrency. This is not a real cryptocurrency, since it cannot be used for profit. It simply makes it easy to use cryptocurrency and therefore very useful.
I can not understand why some are so negative about stable coins. If someone doesn’t like them, just don’t use them, but don’t stop them from doing it to others who see them as good.

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Quote from: jrrsparkles on April 22, 2019, 04:40:37 AM

Quote from: incomefromcoins on April 22, 2019, 03:31:00 AM

Most of the stable coins are being developed by big corporate companies like JP Morgan and Bank of America and even government organizations are coming up with stablecoins stable coins are good for the cryptocurrency which brings of dollars in turnover

Which is good and profitable for the one who created it but the investors will not get benefits from it and literally the value of stable coin keep losing even if the prices is approximately one dollar because the value of dollar keep decreasing due to inflation ...

Stable coins has some benefits to a trader/investor and that is to secure or to prevent the value of thier cryptos to go down . This why stable coins are called stable because they are like dollar . It saves you alot of fees and hassel from cashing your cryptos from time to time if you were a kind of person that is conscious about the volatility of the market .

I dont believe that stablecoins can drop much compare to a regular crypto . They can decrease but not too much , same as what you experience on a regular dollar bill .

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For the future everything is important so investing on every table kinds is also helpful for the future right now that is developing with lots of stability that's why the investment process and thoughts will came for the people to invest in this currency also.

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Quote from: uray on May 20, 2019, 05:20:52 AM

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

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

The depute was proved when Tether who also claimed to have backed every penny to dollar later had to retract their claims and recently they have to say that not everything is backed by dollar but equivalent, you never know what that equivalent is, you really cannot trust those centralized stable coins and i am sure we will see major regulations preventing their use in the future

That goes without saying

But I'm not sure whether there'll be such regulations and, more importantly, whether we need these regulations to prohibit entities like Bitfinex from creating them. Well, Bitfinex may in fact be the one which should be stopped from creating more Tethers but they are not the only kid on block evidently as other exchanges are also now creating such coins. But what about decentralized stable coins then? They seem to be a completely different animal as their value is balanced via market means and not (presumably) pegged to a base currency via someone saying so

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Quote from: haufranco on May 20, 2019, 04:05:02 AM

Wiki. Who told it’s any reliable?

No one is asking you take this as a reliable data, but the content about stable coins being described can be taken as a source of study and there is nothing wrong in it unless they claim that those data are reliable and verified.

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

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

The depute was proved when Tether who also claimed to have backed every penny to dollar later had to retract their claims and recently they have to say that not everything is backed by dollar but equivalent, you never know what that equivalent is, you really cannot trust those centralized stable coins and i am sure we will see major regulations preventing their use in the future.

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Wiki. Who told it’s any reliable?

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Quote from: incomefromcoins on April 22, 2019, 03:31:00 AM

Most of the stable coins are being developed by big corporate companies like JP Morgan and Bank of America and even government organizations are coming up with stablecoins stable coins are good for the cryptocurrency which brings of dollars in turnover

Which is good and profitable for the one who created it but the investors will not get benefits from it and literally the value of stable coin keep losing even if the prices is approximately one dollar because the value of dollar keep decreasing due to inflation.Use stable coin if you don't want to cashout your profits on cryptos which can be used to reinvest without much expenses.

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Most of the stable coins are being developed by big corporate companies like JP Morgan and Bank of America and even government organizations are coming up with stablecoins stable coins are good for the cryptocurrency which brings of dollars in turnover

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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...

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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

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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.

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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.

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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

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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

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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

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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.

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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

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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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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.

Given how uncertain the whole situation is, and given the plethora of alternative exchanges and stablecoins available, I just don't think it's worth the risk.

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Quote from: figmentofmyass on December 29, 2018, 08:28:30 PM

Quote from: o_e_l_e_o on December 28, 2018, 02:05:27 PM

Quote from: exstasie on December 27, 2018, 07:17:00 PM

It's the same risk as holding USD on any exchange, or in particular, an unlicensed one. Assets weren't backed on Gox either, or a host of other crypto exchanges from the past. That's why anyone planning to hold USD long term should definitely be wiring that cash out ASAP.

Not quite the same. With USD, although the exchange you are holding it on might not be solvent, you know that USD itself will always have value (provided the US government doesn't collapse or something equally catastrophic). If you are holding USDT, you run the same risk of the exchange not being solvent, but you also have the added risk of USDT itself not actually being backed up 1:1 by the same amount of USD as claimed. I USDT turns out to be worthless, than it doesn't make any difference whether the exchange you are holding your USDT on are solvent or not.

it depends where the USDT is held. you can hold USDT in an omni wallet (no exchange) but you are still trusting that tether is solvent. this is exactly the same as holding a USD balance on bitfinex and trusting that bitfinex is solvent. in both cases, you are trusting the issuer to redeem real USD

I see your point

I for one agree with it. 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. So it is possible that Tether goes to hell without affecting the exchange operations too much. Without doubt, there'll be a massive "bank-run" on the exchange itself if something bad happens to Tether (or there are just rumors), but it is not set in stone they will go underwater together

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Quote from: o_e_l_e_o on December 28, 2018, 02:05:27 PM

Quote from: exstasie on December 27, 2018, 07:17:00 PM

It's the same risk as holding USD on any exchange, or in particular, an unlicensed one. Assets weren't backed on Gox either, or a host of other crypto exchanges from the past. That's why anyone planning to hold USD long term should definitely be wiring that cash out ASAP.

Not quite the same. With USD, although the exchange you are holding it on might not be solvent, you know that USD itself will always have value (provided the US government doesn't collapse or something equally catastrophic). If you are holding USDT, you run the same risk of the exchange not being solvent, but you also have the added risk of USDT itself not actually being backed up 1:1 by the same amount of USD as claimed. I USDT turns out to be worthless, than it doesn't make any difference whether the exchange you are holding your USDT on are solvent or not.

it depends where the USDT is held. you can hold USDT in an omni wallet (no exchange) but you are still trusting that tether is solvent. this is exactly the same as holding a USD balance on bitfinex and trusting that bitfinex is solvent. in both cases, you are trusting the issuer to redeem real USD.

holding a stablecoin on an exchange does imply additional custodial risk. there may be legit risk trade-offs there though. for instance, i think the insolvency risk of holding USDC is minimal---their bank accounts are much safer than crypto wallets (re hacking) and they are super compliant with authorities so risk of seizure is low. i'd liken it to holding USD on coinbase or gemini. if you could then use USDC in liquid altcoin markets (eg on binance), that might be a worthy trade-off.

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Quote from: exstasie on December 27, 2018, 07:17:00 PM

It's the same risk as holding USD on any exchange, or in particular, an unlicensed one. Assets weren't backed on Gox either, or a host of other crypto exchanges from the past. That's why anyone planning to hold USD long term should definitely be wiring that cash out ASAP.

The main risk is Tether and/or its bank accounts getting seized by authorities like the US government, just like what happened to BTC-e..

It's not the same risk as holding USD on whatever exchange, it's worse than that, and you just pointed the second reason why it's worse than simply having USD on an exchange. The first risk is the exchange itself going down (could be Binance, Bittrex, etc), and the second risk is that your USDT could potentially become worthless overnight. I wouldn't sleep well in any case.

I have to admit though, despite all the shit that USDT went through, it still works, has by far the most exposure throughout the market, and regained it's dollar peg.

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Quote from: BitHodler on December 28, 2018, 02:18:50 PM

Quote from: o_e_l_e_o on December 28, 2018, 02:05:27 PM

This is the most concerning thing. If they were backed 1:1 with USD as they claim, what do they have to lose by doing an audit? Literally nothing, and it would shut up all their critics for good. The only reason to refuse an audit is if they have something to hide. I have stayed well away from USDT for a long time, and there is no change I'm going back any time soon.

Obviously, they have something to hide. Don't forget that people who were affected by their 'hack' have been compensated in USDT, and that pretty quickly after the incident, which raises red flags too.

I'm not sure what you are referring to here

If you mean Bitfinex buying back their tokens after the hack, it happened a few months before USDT came about. The hack happened in August 2016, and if I'm not mistaken, they redeemed all their BFX tokens in January 2017 (maybe in February) while USDT appeared only in April 2017. So unless you actually mean something else, there is no direct connection between the "hack" (tokens redemption) and USDT

BitHodler

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Quote from: o_e_l_e_o on December 28, 2018, 02:05:27 PM

This is the most concerning thing. If they were backed 1:1 with USD as they claim, what do they have to lose by doing an audit? Literally nothing, and it would shut up all their critics for good. The only reason to refuse an audit is if they have something to hide. I have stayed well away from USDT for a long time, and there is no change I'm going back any time soon.

Obviously, they have something to hide. Don't forget that people who were affected by their 'hack' have been compensated in USDT, and that pretty quickly after the incident, which raises red flags too.

What I don't understand is how in a very short period of time they withdrew over 500 million USDT, and since then didn't print anything, while before they printed and withdrew hundreds of millions quite regularly.

With current prices it would make sense to see a bump in USDT circulation, but nothing thus far... Probably an indication that whatever they have in actual fiat holdings is close to what they have in circulating USDT?

o_e_l_e_o

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Quote from: exstasie on December 27, 2018, 07:17:00 PM

It's the same risk as holding USD on any exchange, or in particular, an unlicensed one. Assets weren't backed on Gox either, or a host of other crypto exchanges from the past. That's why anyone planning to hold USD long term should definitely be wiring that cash out ASAP.

Not quite the same. With USD, although the exchange you are holding it on might not be solvent, you know that USD itself will always have value (provided the US government doesn't collapse or something equally catastrophic). If you are holding USDT, you run the same risk of the exchange not being solvent, but you also have the added risk of USDT itself not actually being backed up 1:1 by the same amount of USD as claimed. I USDT turns out to be worthless, than it doesn't make any difference whether the exchange you are holding your USDT on are solvent or not.

Quote from: exstasie on December 27, 2018, 07:17:00 PM

Aside from that, there will never be any news confirming USDT isn't backed because there will never be an audit.

This is the most concerning thing. If they were backed 1:1 with USD as they claim, what do they have to lose by doing an audit? Literally nothing, and it would shut up all their critics for good. The only reason to refuse an audit is if they have something to hide. I have stayed well away from USDT for a long time, and there is no chance I'm going back any time soon.

automaticmoney

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2019 is the year of stable coin even a celebrity and financial institution and government and banks every one launching a stable coin so we can see stable coins bring investors to crypto market

setialovers

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If more stablecoin created, i am believe it just flooding more money to cryptomarket and its should be increasing crypto price. Maybe its good for crypto but there is should be audited by reputable auditor because if not audited, people can creating their own stablecoin withour propers responsibility

exstasie

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Quote from: 1Referee on December 19, 2018, 04:25:47 PM

Seriously, if you think there is potentially a chance that the tokens you hold might become worthless at any point if the news comes out that they aren't backed, how can you still cash out to USDT and wait for the price to have found a bottom? Roll Eyes

It's the same risk as holding USD on any exchange, or in particular, an unlicensed one. Assets weren't backed on Gox either, or a host of other crypto exchanges from the past. That's why anyone planning to hold USD long term should definitely be wiring that cash out ASAP.

The main risk is Tether and/or its bank accounts getting seized by authorities like the US government, just like what happened to BTC-e. Aside from that, there will never be any news confirming USDT isn't backed because there will never be an audit. There will only be FUD that causes USDT prices to temporarily spike below $1. It should stay pegged near $1 or otherwise fall near $0 (if shit hits the fan). Anything in between is just a temporary divergence.

I agree about USDC; seems much safer. But I'm sure its markets are way less liquid too. I'm sure that factors into peoples' decisions to hold USDT instead.

timerland

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Quote

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

Stablecoins are essentially debt instruments that don't give any interest in return.

I wouldn't say that they are useless, they are quite useful as a tool of circumventing restriction to foreign exchange in certain countries with capital control, or to buy/sell cryptocurrencies with without having to go through all the verification needed to deal with actual fiat.

But as a store of value, they are garbage. Even though people may perceive fiat as a good store of value, in the long run, it will depreciate due to the fact that the currency supply is continuously increasing without limitations. And they are risky because you simply do not know if they are printing coins out of thin air, or if they are actually backing it up with reserves.

Shiversnow

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At this current situation of market many people and investors prefer to buy stable coins to avoid to lose huge amount of money and at the same you can earn money and more income. There is chance that stable coins will become trend than in other coins simply because of this bearish market.

1Referee

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Quote from: o_e_l_e_o on December 19, 2018, 10:29:02 AM

I understand your point, but if it eventually comes out that Tether is not backed up by fiat as they claim, the price will dump hard. If you happen to be holding any Tether at the time, you will lose out big time.

It's mind boggling how people don't care about the potential dangers around USDT, and that while most of them do acknowledge that it could just as easily be an unbacked stable coin. Seriously, if you think there is potentially a chance that the tokens you hold might become worthless at any point if the news comes out that they aren't backed, how can you still cash out to USDT and wait for the price to have found a bottom? Roll Eyes

I rather see the fiat value of my coins tank but have them safely stored offline than holding a shitty token that could become worthless overnight. If people are so desperate to 'protect' their fiat value during corrections and bear markets, at least use a stable coin with a reliable entity such as Coinbase/Circle backing it, and not a crook as Bitfinex.

Epimetheus

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Quote from: nl247 on December 19, 2018, 12:26:29 PM

There is obviously no doubt about it that stable coins are incomparable to bitcoin as they are not even cryptocurrency in the first place. So in a way, it is more like just trying to compare fiat and bitcoin as you have said or centralization and decentralization respectively. Left for me, I feel there is really no point having them in the first place, and somehow would be more detrimental in the long run but it is what it is.
The only advantage I see with them now is just the ability to hedge crypto funds, and is it not even a lot better and more relieving to do that with real fiat? Till now, I still try to want to wrap my head around their usefulness since exchanges could just list fiats instead with regulation.

If someone is preferring stable coins then he or she should continue using fiat currency only because there is not point using such a coin.It cannot be considered as a cryptocurrency also.I don't think that there is need of such coins in the market or they should be considered as fiat currency only.Stable coins can be under the control of the governments and therefore they cannot give any profits to its users.Cryptocurrencies are far more better and give good profit amounts.

nl247

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There is obviously no doubt about it that stable coins are incomparable to bitcoin as they are not even cryptocurrency in the first place. So in a way, it is more like just trying to compare fiat and bitcoin as you have said or centralization and decentralization respectively. Left for me, I feel there is really no point having them in the first place, and somehow would be more detrimental in the long run but it is what it is.
The only advantage I see with them now is just the ability to hedge crypto funds, and is it not even a lot better and more relieving to do that with real fiat? Till now, I still try to want to wrap my head around their usefulness since exchanges could just list fiats instead with regulation.

deisik

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Quote from: Greed Dev on December 19, 2018, 10:43:06 AM

I have no idea what your problem is

I humbly admit that neither have I

Care to explain why you feel like I'm having a problem at all? Anyway, as far as feelings are concerned, I can't grasp from where you got the idea that "stablecoin was born to make our market perfect". The term "perfect market" has a very particular meaning in the context of trading and investing (in case you didn't know), and it looks like it has nothing to do with stablecoins as such. Regardless, I don't quite see how they can make investors calm (as opposite to nervous). Care to show me through while we are at it?

Greed Dev

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I have no idea what your problem is. I have a personal opinion about stablecoin. I think stablecoin was born to make our market perfect. It will have many different stablecoins and our market will attract many investors because stablecoin will never make them nervous when the market drops.

o_e_l_e_o

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Quote from: BitHodler on December 19, 2018, 09:45:27 AM

Instead of embracing the revolution and go decentralized we are sucked into more of the same shit.

This happens in crypto too. Look at the top 10 coins at the moment. XRP and EOS are both completely centralized. Both Bitcoin Cash forks are pretty much cults of personality surrounding Ver and Wright. Tether is entirely run by one organization who refuse to even allow an independent audit to verify their claims that they are backed up 1:1 with fiat as they claim.

Quote from: Snaic on December 19, 2018, 12:36:34 AM

Therefore, I especially do not even care if they are supported by fiat or not.

I understand your point, but if it eventually comes out that Tether is not backed up by fiat as they claim, the price will dump hard. If you happen to be holding any Tether at the time, you will lose out big time.

BitHodler

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Quote from: haroldtee on December 19, 2018, 05:39:09 AM

I see them more as a problem than a solution, and the worst part of it is that, their relevance as against using fiat is something that is still questionable.

This problem (as you call it) is a glimpse of what people can expect the fiat system to turn into. It's just a matter of time before we aren't using fiat as we do it right now, but strictly use stablecoins or more precisely said, tokenized fiat.

What concerns me is that most people are likely to follow any path forward of the government as long as they keep the usability and convenience of fiat, but with a couple of more perks.

This isn't innovation, but purely a continuation of a system that has been in place for many decades. Instead of embracing the revolution and go decentralized we are sucked into more of the same shit.

Theb

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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.

From what I am reading I am guessing that you really don't know what you are talking about stablecoins really don't follow the movement of Bitcoin or any other cryptocurrencies in the market as if they are they won't be called "stablecoins" to begin with. You won't really see any kind of price jumps greater than 5% as they only move around -/+ .01-.03 increments in a day or won't even move at all. Stablecoins are in fact not for your money if you are thinking that it will grow, people only buy it if they don't want to participate in the price action going on in the market.

jjjfff

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Crypto.BI

How are stablecoins different from Disney tokens?

Tokens you trade 1:1 for fiat money, which can be quickly spent at some establishments? Sounds like rollercoaster park or arcade game tokens to me!

haroldtee

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Quote from: BrewMaster on December 16, 2018, 11:54:08 PM

the biggest problem that i see with stablecoins is that they are centralized and not like fiat centralization, but worse since they are issued by a company that can go under or run away. with fiat at least the whole country has to go under for their fiat to become worthless but the stablecoin the company which has a high risk of going under can do that and the coin can become worthless in an instant!

Apparently, there is no other way to it than being centralized since they are tied to a centralized entity anyway. Although, a lot of them, most especially the new ones have claimed they are physically backed by real fiat, but pretty much from what we have seen with Tether over the years, seems like something not worth believing in.

I see them more as a problem than a solution, and the worst part of it is that, their relevance as against using fiat is something that is still questionable. Nonetheless, with the way things are going, if one will have to use stablecoin at all, I guess the best is to just consider the level of transparency and accountability, and see if it is something you can work with as a person. However, if we are to compare centralized to decentralized, I guess we all know which one makes more sense.

automaticmoney

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Now the market is turning towards stable coins governments and many organizations are showing interest in stable coin hopefully stable coin bring lot of positive branding for crypto currency industry

Snaic

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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

Stable coins are actually needed for ease of use of cryptocurrency. In fact, they are not and cannot be profitable cryptocurrency. Storage of funds on them, as a rule, is temporary. Therefore, I especially do not even care if they are supported by fiat or not. Decentralized cryptocurrency, for the most part, is also not supported by anything. All cryptocurrency is moderately risky and you should always remember this.

exstasie

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Quote from: magneto on December 18, 2018, 02:43:33 PM

Stablecoins are no different to fiat bank deposits. Even worse, these deposits are not secured by anyone, nor is there solid proof that any reserves are there at all.

There are decentralized stablecoins too. I haven't totally wrapped my head around Dai, but it's based entirely on smart contracts and involves no trusted parties. It's a really interesting project with strong built-in economic incentives that drive the price towards $1 rather than relying on trusted custodians and issuers. Check it out: https://medium.com/@james_3093/the-dai-stablecoin-is-a-game-changer-for-ethereum-and-the-entire-cryptocurrency-ecosystem-13fb412d1e75

I'd much rather hold Dai than anything like USDT, but I'd still limit exposure since it's pretty new and experimental.

magneto

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Exactly. People argue that stablecoins are better in terms of being a store of value, I honestly think that it's the exact opposite.

Sure, there may be volatility in the short term that comes with bitcoin. However, when you are looking at the long run, the value of bitcoin should hedge against inflation nicely, given that adoption stays around the same or continues increasing (which is very likely), due to the fact that it has a limited figure.

Stablecoins are no different to fiat bank deposits. Even worse, these deposits are not secured by anyone, nor is there solid proof that any reserves are there at all. So there is essentially going to be long term depreciation of any value stored in stablecoins, as well as the risk that a "bank run" may happen, while the stablecoin doesn't have sufficient reserves. At the end of the day, it's an extremely risky economic proposition to me.

wuvdoll

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Main use of these coins is not having a dollar on an exchange while still having a symbol of it.

Now, if you want to open an exchange that allows people to put dollar (or any fiat) into it and buy bitcoin with it or even withdraw dollar from the exchange you need to have an agreement with a bank and you need to do a lot more securities work for it and get accepted and basically deal with the law a lot more, that is a lot of work to do and causes a lot of troubles for exchanges. Whereas if you just use usdt or whatever stablecoin you want you are not going to have these type of problems, you just put USDT on your exchange and people will basically hold their coins at fiat without making the exchange deal with a bank.

Moreover, the missing point here is that people pay bitcoin or dollars to get those USDT deal and the owners of the Tether organization basically gets free money, yeah maybe they can't touch that money because that would make it a ponzi scheme but putting that money into investments would work as well.

Basically we are making them rich for free Shocked

.

andriarto

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Quote from: avikz on December 17, 2018, 01:53:29 AM

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

Stablecoins are centralized virtual coins and it is mainly used for trading in exchanges or hedging against the falling asset price! I don't see much utility of stable coins apart from these two scenarios! It's a tool for the traders and doesn't really a cryptocurrency per-say.

as long as I participate in cryptocurrency, it always has high volatility, so that true traders like this. they can make big profits even though they carry a lot of risk, and because crypto is indeed decentralized

avikz

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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

Stablecoins are centralized virtual coins and it is mainly used for trading in exchanges or hedging against the falling asset price! I don't see much utility of stable coins apart from these two scenarios! It's a tool for the traders and doesn't really a cryptocurrency per-say.

figmentofmyass

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Quote from: BrewMaster on December 16, 2018, 11:54:08 PM

the biggest problem that i see with stablecoins is that they are centralized and not like fiat centralization, but worse since they are issued by a company that can go under or run away. with fiat at least the whole country has to go under for their fiat to become worthless but the stablecoin the company which has a high risk of going under can do that and the coin can become worthless in an instant!

that's why centralized stablecoins are just extensions of the exchange ecosystem. it's the same idea as USD or EUR balances on exchanges: those can be subject to "money printing" and fractional reserve too. like USDT, they're just issued against an exchange's internal database.

so i think the correct way to approach stablecoins is to judge the reliability of their issuers---just like banks before federal regulation and depository insurance---because it's 100% based on trust.

BrewMaster

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There is trouble abrewing

the biggest problem that i see with stablecoins is that they are centralized and not like fiat centralization, but worse since they are issued by a company that can go under or run away. with fiat at least the whole country has to go under for their fiat to become worthless but the stablecoin the company which has a high risk of going under can do that and the coin can become worthless in an instant!

TheReverend

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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.

figmentofmyass

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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

exactly---that's why they aren't competitors to bitcoin at all. they're used for hedging fiat value (ie as a complement to exchanges or banks). they aren't used as p2p currencies or speculative investments.

a centralized (exchange-issued) stablecoin is basically just an "exchange IOU". in the old days, that meant a USD balance on an exchange. now it can mean an exchange-issued USD balance that can be used on other exchanges or in p2p/decentralized markets. they're an improvement to exchanges, not to cryptocurrencies.

mu_enrico

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I think the idea of a stable coin is similar to a bank account balance. There is a big risk associated with custodian accounts, especially about trust. Let's assume they really back it with a 1:1 ratio, thus, the function will be the same as the bank balance (except 24 hours of operation and cheaper tx fees).

Moreover, if they really peg the coin 1:1 with fiat, then by nature, it's safer than the bank balance. This is because banks implement a fractional reserve system.

davis196

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Stablecoins have no advantages over fiat and no advantages over crypto.They are used only as a ponzi scheme and scam projects.They have no other purpose than that.End of discussion. Grin

By the way,Wikipedia can't be used as a trusted source of information. Grin

deisik

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Quote from: o_e_l_e_o on December 15, 2018, 07:33:18 PM

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

-snip-

If we are assuming, as you say, that these stablecoins are fully backed up by fiat currency, then all you are doing is pushing the problem of printing out of thin air and inflation back a step. Instead of the crypto itself being printed out of thin air, the fiat currency that is pegged to is instead. The end result for the crypto in question is still the same - devaluation.

That's one of the things I meant when I said you already know the answer (though I wouldn't call stablecoins crypto)

Quote from: o_e_l_e_o on December 15, 2018, 07:33:18 PM

There would still be advantages over actual fiat in terms of transaction speed and fees, but without the advantages bitcoin brings of true decentralization and capped supply.

And that's the next point I wanted to address but decided to wait until someone points it out

In that very case stablecoins should be considered competitors to fiat payment systems such as PayPal, Visa, Mastercard, whatever. And it remains to be seen whether they actually have any advantages in this league. For example, I often use a local payment system, Yandex.Money. It is instant and there's no fees if I send money to someone else using a mobile wallet

o_e_l_e_o

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

-snip-

If we are assuming, as you say, that these stablecoins are fully backed up by fiat currency, then all you are doing is pushing the problem of printing out of thin air and inflation back a step. Instead of the crypto itself being printed out of thin air, the fiat currency that is pegged to is instead. The end result for the crypto in question is still the same - devaluation.

There would still be advantages over actual fiat in terms of transaction speed and fees, but without the advantages bitcoin brings of true decentralization and capped supply.

deisik

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English ⬄ Russian Translation Services

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

Topic: On stablecoins (Read 21468 times)