StableCoins might increase crypto adoption by big companies ? - page 3.

Questat

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Quote from: gunhell16 on October 14, 2019, 02:55:28 PM

If stable coin will get more investors and those companies will just have that then what is the main purpose of cryptocurrency?

The major purpose of cryptocurrency actually is decentralization and a store of value for your money, that's what I understand as that concept is coming from bitcoin which is the most popular, stable coins are just created later, or use for trading to hedge from volatility.

Now, there's a lot of stable coin with different purpose, and the most anticipated was Libra was is being criticize but once it will be launch it will gain a lot of users that would help to increase adoption in crypto space.

Quote from: gunhell16 on October 14, 2019, 02:55:28 PM

crypto is designed for freedom of currency and the anonymous gaining and saving of your wealth!
Crypto is here and the stable coin will not add anything but the demand is the best way to get more demands from people!

That was the original purpose but this market is growing and its normal to see more coins created, and stable coin and volatile coins are both useful as in real world, most of the things and services are still bought through fiat.

numizmat

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There are also some new investment tools, allowing to get returns on stablecoins investing, for example, Invictus Margin Lending (IML) Fund that aims to provide investors with exposure to margin lending returns. Average annualized daily rates for USD in this capacity on Bitfinex have been in excess of 16% for the past 12 months.

The fund only holds USD or USD-equivalent TrueUSD (TUSD) stablecoins. Fund capital is lent out to traders, who borrow these assets primarily for leveraged trading. There is on-demand liquidity for IML token holders, who are able to invest or redeem from the fund on a daily basis. Traders borrow these assets primarily for leverage trading via major cryptocurrency exchanges.
Because the demand is strong and growing while several platforms have recently introduced margin trading functionality or increased the maximum leverage available to traders. Returns have exceeded the hurdle rate since inception, with consistent net returns at rates of approximately 11%.

plast555

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I think Stable coins prevent the price of Bitcoin or other altcoins from increasing at large rates. If Stable coins had never existed, the price of Bitcoin would probably be much more than that now.

But for the adaptation, I agree with the author's opinion. Firms can adapt to blockchain more quickly with the help of stable coins. That's because fluctuations in the price of altcoins outside stable coins can pose an element of risk for large firms.

So I think it's right that stable coins should be preferred more for adaptation.

lobat999

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Quote from: ChrisPop on October 14, 2019, 02:03:08 PM

Well.. it is not really stable coins we're trying to implement here isn't it? Because we already have the electronic payment methods which are pretty much the same as using a wallet to send money & you only need to swipe your card. I think that Bitcoin's mission is much bigger than that - to become a worldwide universal currency that is not governed by banks and people control it, not governments or central entities. The current stable coins have many reliablility problems. DAI sometimes has some brutal volatility spikes that are not a good sign at all. USDT is shady and the other stable coins are rarely used. I've noticed that crypto enthusiasts don't manifest much interest for them.

Actually, there are mechanisms that could overcome sudden effects of crypto volatility and with it, we could even disregard the use of stablecoins as a payment option to foster merchant adoption! And I think one way that could do this is to replicate what local exchanges are doing or adopt strategies in their business model to mitigate volatility.

I am not an expert on this field and I assume this local exchanges are doing the right way combating volatility because if they were not performing right on this field, then they would have been gone out of their business and succumbed to the competition a long time ago! So its up to the merchants if they really want to adopt crypto into their businesses and should find ways to further grow their business through crypto adoption, but no stablecoins please.

gunhell16

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If stable coin will get more investors and those companies will just have that then what is the main purpose of cryptocurrency?
crypto is designed for freedom of currency and the anonymous gaining and saving of your wealth!
Crypto is here and the stable coin will not add anything but the demand is the best way to get more demands from people!

tenakha

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Quote from: apoorvlathey on October 13, 2019, 07:45:28 PM

You all might be knowing that Steam used to accept payments in bitcoin through BitPay, but they abruptly stopped it stating the price volatility of bitcoin to be the issue.
Stablecoins eliminates this very issue, could this encourage Steam or other companies like Amazon,etc. to start incorporating cryptocurrencies into their payment systems.
Is it possible some stablecoin might outperform bitcoin regarding this?

Accepting crypto as payment gives hope to other options. But it is a bit suspicious that it is stablecoin, not crypto. What is the difference between controllable stablecoins with paper money? It is useful to pay less fees in cryptotrade. But what does it mean to be accepted as a payment? Stablecoins are not real cryptocurrencies. Besides why should they use it, when we even thought it is scam? Stablecoins are useless outside this area.

Cryptoletsgo1

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100% agree with that. I think stablecoins are already doing that actually, they are light and mobile friendly for future apps and payment channels 👍🏼✌🏼

PuertoLibre

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Quote from: crypoco on October 14, 2019, 11:43:21 AM

I do not know why most the popular company not accept payment in stablecoin, if they do not like to accept bitcoin due wide range price, stablecoin not.

The problems of stable coins don't let popular companies accept stable coins as a payment method. Stablecoins lost the popularity after the Tether scandal and the big crypto exchanges especailly Bitfinex was sued by the investors AFAIK. I don't guess the formal payment methods will be ignored and the preference will be given to the stable cryptocurrencies.

ChrisPop

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Well.. it is not really stable coins we're trying to implement here isn't it? Because we already have the electronic payment methods which are pretty much the same as using a wallet to send money & you only need to swipe your card. I think that Bitcoin's mission is much bigger than that - to become a worldwide universal currency that is not governed by banks and people control it, not governments or central entities. The current stable coins have many reliablility problems. DAI sometimes has some brutal volatility spikes that are not a good sign at all. USDT is shady and the other stable coins are rarely used. I've noticed that crypto enthusiasts don't manifest much interest for them.

beerlover

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I think stablecoins will not but those big companies may make their own ones. We already know that most stablecoins like usdt are scamming people anyway, you can't even withdraw dollars right now so I have no idea why people still use it, big companies will definitely not adopt something like USDT that worth zero, they are not that idiots, huge companies are bigger than most nations, if they make their own currency slowly then people may start to use that.

Think about it, applepay or whatever is already a good thing, how about applecoin? Facebook is big enough, how about Libra? Starbucks is huge everywhere, what about stars bucks or whatever. I mean stablecoin idea itself is good for companies to make their own but they will definitely not use the scam ones we have now.

crypoco

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I do not know why most the popular company not accept payment in stablecoin, if they do not like to accept bitcoin due wide range price, stablecoin not.

electronicash

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businesses always want stability. one would understand that they are for profit, holding btc in their wallets are just going to risky for them since they know the prie could just drop to a hundred to thousands in a single day, who wants that.

those who has the mind to really look at the future and where is cryptocurrency going to go, they are looking into it and must have seen it that way that stability of a cryptocurrency will make them accept it like fiat.

lobat999

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Quote from: NathanJB on October 14, 2019, 09:40:07 AM

First, why would they use stablecoins when they can use cashless transactions? That is basically the same for me. Stablecoins are pegged on the US Dollar and so if I buy stuff from Steam and Amazon I could very well use my card instead.

A wise decision indeed! I guess using cards for online purchases could be more handy and comfortable than using a stablecoin! On the contrary, stablecoins specifically with Tether have known risks associated with it that is why most merchants could not be easily convinced in adopting it - one reason mainly because it has been controversial with regards to the integrity of fiat backing and until this date, the holding company of Tether hasn't provided any verifiable proof that Tether has indeed a 1:1 backing for U.S. dollar!

So in essence, if you buy goods or services using your cards, the merchants are assured it has fiat backings courtesy from the bank of financial institutions that issued it whereas if you use a stablecoin such as Tether, merchants are not really sure if it indeed has fiat backing - the reason why stablecoins would not get a wider audience and adoption in the long run. Imho.

Seghokendil

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what I know is stable coins are centralized coins and do not have advantages like other decentralized crypturrency and the price is very volatile. so if I say about profits in investing the answer is fluctuating coins like bitcoin and some other altcoins that are not stable coins. but if you rely on stable coins as an investment tool, it will not give you more profit.

TrevorS

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In fact, stable systems are no different from ordinary national currencies such as dollars and euros.
It may well become a gateway through which the crypto community and simply cryptocurrency users can use bitcoin as a means of payment.
However, the question arises from which side Bitcoin - stablecoin and vice versa will be exchanged.

qiwoman2

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Stablecoins really were just created for people to park their money and not lose their profits in times of high volatility. Tether was created by Bitfinix to protect first the interests of the big Whales and to help those market makers in their initial dumping sessions, to dump before everyone else can do anything, so they can keep the wealth for themselves again. Of course, many people don't know how to trade and to be honest stablecoins don't have much other usage at the moment. They are good for those who have them and if they don't want to use money in their bank they can use it to buy things if a merchant allows. I don't think that's a bad thing for those who actually only earn or own crypto and not fiat.

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Quote from: o48o on October 14, 2019, 08:49:42 AM

Doesn't the bitpay service convert the bitcoin to fiat-money automatically for the retailer? So volatility shouldn't be the issue, i think that they just want to stay away from cryptos for now because of other reasons.

AFAIK Steam abruptly ended the partnership with Bitpay due to reasons unknown up to this point. It's not due to volatility since Bitpay handles all the conversions from crypto to fiat in a seamless manner. And no, I don't think stablecoins would have a say/part in e-Commerce knowing that they are basically just tools used to transfer value from one exchange to another and not necessarily as a currency per se. And with what Steam did to the payment option of bitcoin last 3 years ago, I can say that no change of heart has happened even though bitcoin and the whole cryptomarket went to the sky and fell down to where it is right now.

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Quote from: apoorvlathey on October 13, 2019, 07:45:28 PM

You all might be knowing that Steam used to accept payments in bitcoin through BitPay, but they abruptly stopped it stating the price volatility of bitcoin to be the issue.
Stablecoins eliminates this very issue, could this encourage Steam or other companies like Amazon,etc. to start incorporating cryptocurrencies into their payment systems.
Is it possible some stablecoin might outperform bitcoin regarding this?

First, why would they use stablecoins when they can use cashless transactions? That is basically the same for me. Stablecoins are pegged on the US Dollar and so if I buy stuff from Steam and Amazon I could very well use my card instead. There is no sense buying stablecoins for this sake. It is just adding another layer of transaction when it is not really necessary. If they incorporate cryptocurrency, it should be Bitcoin first and foremost. Let the volatility issue turn out beneficial to them. They can do that of course.

o48o

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Quote from: apoorvlathey on October 13, 2019, 07:45:28 PM

You all might be knowing that Steam used to accept payments in bitcoin through BitPay, but they abruptly stopped it stating the price volatility of bitcoin to be the issue.
Stablecoins eliminates this very issue, could this encourage Steam or other companies like Amazon,etc. to start incorporating cryptocurrencies into their payment systems.
Is it possible some stablecoin might outperform bitcoin regarding this?

Doesn't the bitpay service convert the bitcoin to fiat-money automatically for the retailer? So volatility shouldn't be the issue, i think that they just want to stay away from cryptos for now because of other reasons.

Maturnuwun

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like most others, I'll just say a little about this.
that stablecoin is included in the fixed price category.
so if you mean stablecoin in real assets like dollars (USD) it is a stable currency in real life
while stable coins in cryptoqurrency assets can be like USDC or USDT including stable digital currencies that exist in this cryptoqurrency market.
so, I think stable coins cannot outperform bitcoin more than what they have produced so far such as (USDT, USDC etc.)

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