Topic: Stable Currency: the Inevitable Process of Historical Development (Read 129 times)

Peoples believe in this industry because they feel it's decentralised and they can do anything without the involvement of the third parties. In last 6 months there are huge rise in number of stable coins like USDT, DAI, USDC, GUSD, PAX, HUSD, BitUSD etc, all this stable coins pegged to USD are inflammatory and are not decentralised.

I haven't used GDAX but aren't them using the real dollars? Also Japanese, European and Korean exchanges are also direct with their fiats money? In my country we already have one just lately but I haven't tried as I am still used to Binance.

I still expect the exchanges to evolved into a sort of "banking" or "forex" system where people can actually deal with regular currencies as well.

We have stuff like "usdt" and "usdc" and what not that represents your coins however it doesn't really mean that they are dollars, they are just tokens for it and are really definitely useless things outside of the exchange. I am expecting the exchanges to evolved into real dollars, real euroes, real sterling and whenever you want you can withdraw fiat as well.

There are real exchanges with real bank ties that allows you to withdraw dollars or buy with dollars, there are places like binance that allows you to trade between hundreds of coins as well, all we are left with is combining those two types of exchanges and in the end I can send dollars to an exchange, buy bitcoin, trade it to dash, trade back to bitcoin and get dollars and withdraw it to my bank account. Only exchanges that allows this direct deposits will survive in couple of years.

Judging by the text, this is taken from some kind of article, and as far as I can see, the source is not indicated. For such an act, the forum can award a ban for plagiarism. From the reading above, I do not even know what to select. As a whole, there is a lot of it, but there is little confusion. Conclusion, do not dream about death $, this will not happen. Just as there is no scam USDT.

Stable currency is a tough thing to maintain actually, the already existed cryptocurrency USDT is actually backed by the US dollars, which is also volatile and will affect the price of USDT. So a currency can be Stable if it is not backed by other, i guess.and then new history can be made.

Stable currency is new kind of currency as in USDT as in it is to create to erase the volatility of the crypto to assure people gaining more trust about it. But the problem is having a measuring unit as USD to back it up. When a stable currency is not backed by something or measured by others value it will certainly create a history in the development of the crypto world.

I really like how DAI stablecoin works, check it out.

Every form of FIATs has gone through some form of development, with inflation and deflation. Tether is going through the same scenario of historic development of currency and it is only natural.

For something to have value it needs to be backed up by something physical or valuable. The value increases or decreases according to the shortage or availability of it in the market. Tether expected to keep its value stable but naturally failed as a result of historical development.

At around 14:00 pm yesterday, during the lunch break, Bitcoin suddenly ushered in a 13% increase, and the price of BTC/USDT reached a maximum of $7,600. There’s no doubt that it is the most exciting thing for the investors who has experienced a 10-month bear market from the beginning of the year to the present. However, after excitement, investors suddenly found that something seemed wrong, the price change was just the transaction cryptocurrency and USDT, but there was no significant change in the transaction of the legal currency. After two or three hours, the market began to calm down, and the price gradually fell back to around $6,800. People gradually saw the clues and returned to calm from the initial excitement.

We can find that this so-called skyrocketing is just a stand-alone game of the USDT transaction against the crypto assets, and this turmoil creates a short-term panic in the market. It is a transfer of encrypted assets from USDT to the encrypted assets themselves. Because there is no new capital to enter, there is no growth. But this time, the “fake bull market” can also reflect the value of Bitcoin for investors from the side.

In fact, the complaint against USDT is not just beginning. Some people have questioned the stability of USDT and the opacity of funds. The plunge on October 15 has also aggravated investors' distrust of USDT.

The volatility of encrypted assets is actually similar to some economic cycles in history, and the collateral of “stable coin” is not first created by USDT. After the Second World War, a system similar to the gold standard system was established under the leadership of the United States. Under this system, national currencies are pegged to the US dollar, and the US dollar is pegged to gold, which is equivalent to $35 in the price of one ounce of gold. Then the excess dollar caused the end of the Bretton Woods system. After that, anchoring oil had an similar experience. The dollar needed to embody its value by binding a value that had been already ingrained in people's minds. As the US national strength became stronger, the dollar no longer needed external force. The dollar has realized the transformation of collateral to credit currency, and truly fulfilled the function of value scale.

Absolutely, the USDT can't compare the US dollar, because there is no such a huge system like United States to create continuous value behind it. But it has became a value tag that is deeply rooted in people's minds just like American Dollar. History shines into reality. The birth of stable currency is an inevitable trend in the history of cryptocurrency. Its emergence was only a short historical stage in the process of currency digitization, and will not become the end. The replacement of stable currency is also an inevitable trend, but the change of history needs time. As far as the current situation is concerned, a large number of stable coins have begun to rise. The USDT that temporarily maintains its advantage is constantly being hit by competing products, but USDT will not fall for the time being. The market share is too big, if the sudden collapse will cause a very large earthquake in the market.

Imagine that if there is a international currency such as the US dollar issued by the government as legal cryptocurrency, so the stable currency arched by legal currency will naturally no longer be needed; and if there are other financial instruments that are better than the stable currency, the status of the stable currency will also be affected. Therefore, the replacement of USDT is an inevitable and slow process, perhaps a legal cryptocurrency, or perhaps another financial instrument. In any case, the stable currency will eventually complete the inevitable process of historical development.