Stable Coins are a Threat for Bitcoin? - page 5.

Eugenar

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Quote from: micalith on October 20, 2019, 10:17:39 AM

Let's discuss the potential effects of stable coins which are bound to usd or eur. We usually use them to avoid the volatility or short bitcoin in a way. There are many stable coins in the last year. By writing threat, I didn't mean issues like tether's issue. I mean, they are not coins, they are just usd and eur.

I don't think so, because stable coins are a possible conversion of the USD and EUR at the same time, and in that case, once these coins are being converted, people can easily buy bitcoins and other coins as well. Being a threat to bitcoin isn't much likely to happen, as we know how capable they are in saving investors and traders from being eaten up by the falling market trend.

mk4

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I definitely don't see them as a threat. If anything, these stablecoins are just fiat that are easily tradable through exchanges. Sure, they're stable in value. But isn't one of the reasons bitcoin was created is for us to have something that's deflationary? In contrast to fiat stablecoins that has values that are still controlled by the fed. Don't get me wrong; stablecoins are definitely useful; but I won't hold them for more than a few months.

avikz

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Quote from: micalith on October 20, 2019, 10:17:39 AM

Let's discuss the potential effects of stable coins which are bound to usd or eur. We usually use them to avoid the volatility or short bitcoin in a way. There are many stable coins in the last year. By writing threat, I didn't mean issues like tether's issue. I mean, they are not coins, they are just usd and eur.

Can you give me a valid reason for these stable coins becoming a threat to the crypto economy? I don't think so! These stable coins are made for good reasons! it helps immensely in trading, especially the day traders are benefited the most from it. It is an arguable statement, if these are coins or not! But they are definitely a digital representation of fiat currencies like USD or EUR. It certainly helps protect your capital during a bearing market. I personally don't think they are any threat to the crypto economy rather it helps in growing the crypto economy by allowing the traders to have a straight forward calculation and faster execution!

CryptoBry

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Quote from: micalith on October 20, 2019, 10:17:39 AM

Let's discuss the potential effects of stable coins which are bound to usd or eur. We usually use them to avoid the volatility or short bitcoin in a way. There are many stable coins in the last year. By writing threat, I didn't mean issues like tether's issue. I mean, they are not coins, they are just usd and eur.

Right now, we are not seeing stablecoins as threats to the dominance of Bitcoin. In fact, I read weeks ago an article which stated that Libra as a stablecoin can in fact be helping Bitcoin be more valuable. Well, I am hoping that it can be that case if we find Libra will be operational already after battling it out with many opposing regulators and politicians. A week ago, there was this another article which posited the idea that a certain stablecoin actually propped up the value of Bitcoin. In trading, we know that there seems to have a mutual relationship between stablecoins and Bitcoin. However, stablecoins are considered to be threats to the global economy, says some regulators and this has become the basis for their strong stance against Libra.

BrewMaster

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they are all centralized and highly risky, there is no threat in that for a decentralized bitcoin like bitcoin. specially from dozens of them that keep popping up like mushrooms these days.
the only thing that could only cause a short term drama and that only in price of bitcoin is tether and that is only because it is oldest and biggest otherwise they have nothing to do with bitcoin.

serjent05

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Quote from: micalith on October 20, 2019, 10:17:39 AM

Let's discuss the potential effects of stable coins which are bound to usd or eur. We usually use them to avoid the volatility or short bitcoin in a way. There are many stable coins in the last year. By writing threat, I didn't mean issues like tether's issue. I mean, they are not coins, they are just usd and eur.

I don't think that these stable coins is a threat to Bitcoin. They have the deflationary tendency just like USD and EUR that is where Bitcoin is proven superior. Any advantage of Bitcoin against inflationary currency will be the same advantage it will have to all stable currency pegged to USD oe EUR.

Quote from: micalith on October 20, 2019, 10:49:33 AM

What if we use bitcoin without these backup stable coins? We may need to learn that we can do without these stable coins, we don't need usd or eur or other traditional money. We should start using directly bitcoin rather than its usd value. For example, an apple may cost some satoshi not cents. Apple's cost depends the traditional way, demand and supply and its price can change in return for satoshis. We should remove usd eur and others, stable or not.

We already use Bitcoin as it is, items are priced in Bitcoin with equivalent of USD price of the item, or usd converted to Bitcoin amount. We cannot remove this USD, EUR or any fiat currency pricing because it is the known universal unit of price of an item.

micalith

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Quote from: Pearls Before Swine on October 20, 2019, 10:21:00 AM

Quote from: micalith on October 20, 2019, 10:17:39 AM

By writing threat, I didn't mean issues like tether's issue. I mean, they are not coins, they are just usd and eur.

If you realize that point, then the question is moot. Bitcoin derives a lot of its popularity from the fact that its value is subject to the free market, meaning that its price moves according to supply and demand. Stable coins don't do that, and there is never going to be significant interest in them other than using them as a substitute for cash on exchanges.

So no, there isn't a stable coin in existence or one to be yet created that will present a threat to bitcoin, or to any altcoins.

What if we use bitcoin without these backup stable coins? We may need to learn that we can do without these stable coins, we don't need usd or eur or other traditional money. We should start using directly bitcoin rather than its usd value. For example, an apple may cost some satoshi not cents. Apple's cost depends the traditional way, demand and supply and its price can change in return for satoshis. We should remove usd eur and others, stable or not.

Pearls Before Swine

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Quote from: micalith on October 20, 2019, 10:17:39 AM

By writing threat, I didn't mean issues like tether's issue. I mean, they are not coins, they are just usd and eur.

If you realize that point, then the question is moot. Bitcoin derives a lot of its popularity from the fact that its value is subject to the free market, meaning that its price moves according to supply and demand. Stable coins don't do that, and there is never going to be significant interest in them other than using them as a substitute for cash on exchanges.

So no, there isn't a stable coin in existence or one to be yet created that will present a threat to bitcoin, or to any altcoins.

micalith

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Let's discuss the potential effects of stable coins which are bound to usd or eur. We usually use them to avoid the volatility or short bitcoin in a way. There are many stable coins in the last year. By writing threat, I didn't mean issues like tether's issue. I mean, they are not coins, they are just usd and eur.

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