– The need for asset-backed stablecoins in uncertain times

leea-1334

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Quote from: ccFOUND on August 12, 2021, 06:58:49 AM

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Prices are actually not so stable and can even drop below $1 for most of the time as I can observe on platforms.

Yes, that is true, we have also noticed enough shakeouts in BUSD/USDT when USD Index (DXY) was doing great which plunged USDT and it shot down to $0.97 against BUSD that was enough to shake anybody's beliefs in stablecoins as to how stable they are. Please visit charts at Binance and check for dates 18/4/21 and 19/5/21. This can be taken as an example while using stablecoins and it is also not good to keep all your eggs in one basket, like going for USDT or BUSD only while trying to keep your assets safe from manipulation.

Yes,,, and 97 cents does not look like much but that is still 3% drop and this in the context of being a stablecoin is a lot of money. Not to mention that fees in most exchanges including Bittrex and Binance is about 0.5% of total for stablecoins the last time I checked you are losing a lot of money with every exchange.

aemma

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Every good cryptocurrency have it's use in the crypto market, and depending on the use or rather use case, will then show if the cryptocurrency will last long term or not, because the main idea of investing in any good coin is long term usability, if that idea of long term isn't there, you might wake up one day to realize the token is now worthless.
Nevertheless, with the little above explanation, stablecoins are good, at least their usefulness have always been seen when the market is in a bad shape, and currently there are many of them, and it looks like more exchanges are on the verge of having theirs. However, saying they are the future of the crypto space might be hard to swallow, at least USDT and USDC have been around for a long time now, but it doesn't look like they are being considered as such. In my opinion, in as much as, stablecoins are great but they lacks what it takes to replace most cryptocurrencies and become the future of this space, and with the rate they are coming up, it's time to start paying attention on the ones to have anything to do with.

Silberman

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Quote from: Nathrixxx on August 11, 2021, 01:45:18 AM

It always feel good whenever you're rest assured of your earnings are well secured, you might need the insightful thought on stable coin for those in the run for a good token assets.

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Several experts consider stablecoins to be the future of cryptocurrencies. As the name suggests, stablecoins are safer and more resilient to crypto volatility than other cryptocurrencies. Some stablecoins are backed by fiat currencies such as USD, or EUR, while others are backed by hard assets such as gold, diamond, oil, etc.

People prefer stablecoins because of their base asset, which helps crypto tokens become more resistant to fluctuations. Also, as a single entity does not rule them, they remain decentralized regardless of being pinned by an asset.

Over time, several blockchain projects have launched their own stablecoins backed by different fiats and hard assets. However, Eurst became the first platform to design a Euro Stable Token to digitize Euro currency and start a crypto transition in the European economy.

Source link:
https://ambcrypto.com/eurst-the-need-for-asset-backed-stablecoins-in-uncertain-times/?utm_source=thecryptoapp

I understand why stable coins exists as they without a doubt facilitate and make smoother the transition from cryptocurrencies to fiat and vice versa, however I disagree with any attempt to try to use them as a store of value even when those stable coins are supposedly backed by hard assets, and the reason for this is simple if you want to have an asset that is a store of value then get that store value directly and do not use a proxy for it, if you want gold then get gold and not a cheap imitation.

ccFOUND

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Quote from: ?? on ??

<>
Prices are actually not so stable and can even drop below $1 for most of the time as I can observe on platforms.

Yes, that is true, we have also noticed enough shakeouts in BUSD/USDT when USD Index (DXY) was doing great which plunged USDT and it shot down to $0.97 against BUSD that was enough to shake anybody's beliefs in stablecoins as to how stable they are. Please visit charts at Binance and check for dates 18/4/21 and 19/5/21. This can be taken as an example while using stablecoins and it is also not good to keep all your eggs in one basket, like going for USDT or BUSD only while trying to keep your assets safe from manipulation.

Findingnemo

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Stable coins are.good.for someone to start their trading career along with bitcoin and also they can keep the profits in the stable coin instead of cashing out to your bank account every time. But stable coins are not safe and USDT is at the risk of reaching zero because they have no real backed up assets for the tokens they keep printing.

hugeblack

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There is no such thing as stablecoins. There are currencies pegged to the dollar or some paper money or any of the assets, and therefore their value is linked to the value of those assets, which are not considered stable due to inflation, as the US dollar has lost a lot of its value from 1970 to the present day.

Thus, stablecoins are worthless when central banks issue digital currencies.

ccFOUND

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It looks more as an advertisement to ~~sell~~ share the news about a new stablecoin. But are so many alternatives needed by those who back such stablecoins when they are "not being governed by any regulatory body"? If all the countries start coming up with their own government-backed digital currencies (i.e.; stablecoins) and make it mandatory for their citizens to use that digital money of their country only to trade in crypto, what will happen to these stablecoins if they will be banned by governments? Will decentralisation end if you use your country's government-backed digital currencies if all your financial data will again come into the hands of the governments through this?

TheUltraElite

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Quote from: Nathrixxx on August 11, 2021, 01:45:18 AM

It always feel good whenever you're rest assured of your earnings are well secured, you might need the insightful thought on stable coin for those in the run for a good token assets.

Major reason of me using a stablecoin is as an intermediary to escape the volatility so as to multiply the bitcoins I have to the maximum while the price swings from high to low.

I mean if someone is already investing, they are looking for the prices to be volatile - otherwise there is stagnancy and that is bad for any speculative asset, a good example of which was shown in the Q1 of 2016. The bad effect of that was the emergence of margin trading and futures trading platforms which led to many uninformed newbies attempting to do these risky bets.

Stablecoins may have more uses, but I dont really see that. I could only end up using one which I prefer and that is available on the exchange I use and that too for temporary period only.

Moreover the article quoted by the OP, I would like to know who are these "crypto experts" - I have been watching similar topics being chucked away everyday and they all seem to promote things based on "anonymous" users. I seriously doubt their motives more so since they promote a stablecoin in the article which has not be posted by the OP here.

tranthidung

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Quote from: el kaka22 on August 11, 2021, 01:58:28 PM

Anyone who imagines the current stablecoins are the future is simply just kidding themselves. Do you even know why people use crypto? I mean we all "invest" into crypto, if I am not making a profit then why am I even bothering buying stablecoin? What am I suppose to do with it, just spend it? I do not think that people would like that idea at all.

Stable coins are more stable than other cryptocurrencies but they are volatile as well. It means stable coins can bring profit or loss, depends on when you buy and sell your stable coins. Additionally, the volatility in local markets are bigger than global markets.

Quote from: livingfree on August 11, 2021, 03:22:53 PM

They are stable and that's what they can see and just leave it to the regulators which shall create their own stable, fiat-based and digitalized and that's the CBDC for them.

The obvious fluctuations are for cryptocurrencies that we're having right now and that's why if you're not fond on it, you get to save the value of your asset through stable coins.

Stable coins are not stable as many people believe. It is misleading belief. Please see my analyses below.

Stable coins - Price, volume history and changes with bitcoin fluctuations
Bitcoin pumps/ dumps and altcoin price actions (2013 - 2020). See the part for stable coins.

People can consider stable coins as means to move their capital from Bitcoin to altcoins and even to fiat currencies. They must be aware of risk from stable coins:

Volatility: most of time, stable coins are stable but in some days they are not stable and if you buy or sell your stable coins in such days, you might end with profit or loses.
Legal issues: we don't know how companies actually back their stable coins by other assets or not; we don't know what sort of regulation from governments in the future on stable coins, etc.

livingfree

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They are stable and that's what they can see and just leave it to the regulators which shall create their own stable, fiat-based and digitalized and that's the CBDC for them.

The obvious fluctuations are for cryptocurrencies that we're having right now and that's why if you're not fond on it, you get to save the value of your asset through stable coins.

el kaka22

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Anyone who imagines the current stablecoins are the future is simply just kidding themselves. Do you even know why people use crypto? I mean we all "invest" into crypto, if I am not making a profit then why am I even bothering buying stablecoin? What am I suppose to do with it, just spend it? I do not think that people would like that idea at all.

We need something that is bringing us a profit, right now there are algo stable coins but at the end of the day all of them worth something until people stop caring about it, there is a good logic behind it and it all makes sense but as soon as people stop buying and start selling then the price keeps crashing and nobody can recover that, even the tiniest thing becomes huge and it becomes worthless. That is the only profitable one so far and it sucks big time and crashes, if someone some day finds a proper way to both have stablecoin AND make a decent return, that could get some attention.

Jawhead999

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If your country use USD or Euro as the currency, it's better if you use fiat rather than stable coin since it's not safe and not decentralized. Most of people use stable coin since their currency has high inflation, holding high inflation currency only make your investment dropped.

mk4

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Stablecoins are really fine in a trading perspective, because the transferring of money from exchange to exchange is a lot easier than doing wire transfers or bank transfers. But always remember, stablecoins(outside of DAI), especially USDT and USDC, are centralized AND custodial.

Topic: [UPDATED] PSA: Most Stablecoins Can Be Frozen, Even in Your Own Wallets https://bitcointalksearch.org/topic/updated-psa-most-stablecoins-can-be-frozen-even-in-your-own-wallets-5204055

cryptoaddictchie

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I partly agreed thats because I also looking for stablecoin farms that give a really good APY cause the risk is relatively low and even volatility is kinda high the movement is quite little.

But in terms of gains and profits. We all knew that high risk high reward have more chances to gain bigger than stablecoin coin since volatility can be used to earn a lot especially if you are using perpetual trading.

Nathrixxx

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It always feel good whenever you're rest assured of your earnings are well secured, you might need the insightful thought on stable coin for those in the run for a good token assets.

Quote

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Several experts consider stablecoins to be the future of cryptocurrencies. As the name suggests, stablecoins are safer and more resilient to crypto volatility than other cryptocurrencies. Some stablecoins are backed by fiat currencies such as USD, or EUR, while others are backed by hard assets such as gold, diamond, oil, etc.

People prefer stablecoins because of their base asset, which helps crypto tokens become more resistant to fluctuations. Also, as a single entity does not rule them, they remain decentralized regardless of being pinned by an asset.

Over time, several blockchain projects have launched their own stablecoins backed by different fiats and hard assets. However, Eurst became the first platform to design a Euro Stable Token to digitize Euro currency and start a crypto transition in the European economy.

Source link:
https://ambcrypto.com/eurst-the-need-for-asset-backed-stablecoins-in-uncertain-times/?utm_source=thecryptoapp

Topic: – The need for asset-backed stablecoins in uncertain times (Read 175 times)