The use of stable coins or no? - page 6.

adaseb

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Quote from: zabir.brutov on November 12, 2019, 10:45:11 AM

I do not see any use in stable coins, besides keeping the money on exchanges while searching for a market entry point. Besides, the most stable coins are regulated and are backed only by a certain percentage and not in full amount.

Actually you don't need to keep stablecoins on exchanges. Keep in mind that Tether is on the OMNI network which is basically the bitcoin blockchain and the ETH network which runs under the ERC20 network. So you can actually keep it in your wallet on your computer.

This is important because you can actually keep your stablecoins on cold storage. For ETH ERC20 stablecoins you can use a Trezor and for Bitcoin OMNI network Tether you can use the Armory cold storage option and you won't need to worry about them getting stolen like your crypto.

Another good thing about Tether is that you can lend it out on Bitfinex or Binanace and get like 10% interest per year. There is no bank that will ever give you an interest rate that high so its another pro of stablecoins.

deodivine1

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Quote from: Moore234 on November 09, 2019, 05:13:54 AM

The use of stable coins has it's own advantages. It's helpful when market is unstable and you are not sure of the market. I specifically I exchange my assets to stable coin when I see a dip or unsure about the market. Stable coin is very convenient if the market seems to be bearish

It's old news to emphasize the importance of stable coins especially to traders. Infact, most short term trades I do recently are on USDT pairs looking at the dwindling market situation, even though I convert most of my holdings to BTC when I analyse and perceive an incoming uptrend.

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Quote from: barnes13 on November 12, 2019, 11:50:36 AM

Quote from: zabir.brutov on November 12, 2019, 10:45:11 AM

I do not see any use in stable coins, besides keeping the money on exchanges while searching for a market entry point. Besides, the most stable coins are regulated and are backed only by a certain percentage and not in full amount.

Besides that function, stable coins are also suitable for online payment instruments. At present we see a lot of shops that provide payment through crypto currencies that don't have a stable value, of course it has an impact if the network is slow. Prices change quickly but transaction speeds cannot match that.

the use of stable coins I think can also be used in online stores, purchasing goods with stable crypto is better in my opinion. as you said that when using a coin which stability is less profitable, people will think twice about making payments with it plus a large fee when using btc payments

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Quote from: zabir.brutov on November 12, 2019, 10:45:11 AM

I do not see any use in stable coins, besides keeping the money on exchanges while searching for a market entry point. Besides, the most stable coins are regulated and are backed only by a certain percentage and not in full amount.

Besides that function, stable coins are also suitable for online payment instruments. At present we see a lot of shops that provide payment through crypto currencies that don't have a stable value, of course it has an impact if the network is slow. Prices change quickly but transaction speeds cannot match that.

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Quote from: zabir.brutov on November 12, 2019, 10:45:11 AM

I do not see any use in stable coins, besides keeping the money on exchanges while searching for a market entry point. Besides, the most stable coins are regulated and are backed only by a certain percentage and not in full amount.

Totally wrong, stablecoin backed by funds reserved by the company behind that project with ratio of 1:1 and usually being reviewed by the authority. The sole purpose of this coin is to keep the value of your asset and nothing more. Regulation toward stablecoin is inevitable because it is essentially a centralized coin and if they are backing the coin using dollar then they need to obey the rules.

zabir.brutov

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I do not see any use in stable coins, besides keeping the money on exchanges while searching for a market entry point. Besides, the most stable coins are regulated and are backed only by a certain percentage and not in full amount.

Moore234

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The use of stable coins has it's own advantages. It's helpful when market is unstable and you are not sure of the market. I specifically I exchange my assets to stable coin when I see a dip or unsure about the market. Stable coin is very convenient if the market seems to be bearish

kogozer714

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there are many stable coins circulating in the market but there are still many users who use stable USDT coins, some of their crypto markets use BTC, ETH and USDT exchanges, I think that is a fiat alternative.

Finestream

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Stable coins are very helpful, actually its good that we are seeing an increase of number of stable coins now.
We convert our bitcoin or any altcoins to stable coins if we are doubtful on its stability, when there is a bull run or the dump, you can also use stable coins to hedge your money from volatility, but it should be done properly, you should have a proper plan doing it.

Cashing out stable coin is not a problem, once the market began to stabilize, you can see it for btc then you can cash it out through usdc or whatever currency in the market that would allow you to covert your btc into fiat.

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Quote from: llecrf on November 08, 2019, 10:30:26 PM

Quote from: yazher on October 04, 2019, 06:41:10 AM

On the other day, I think of the use of stable coins. I mean, when can we use Stable coins as an alternative fiat. You see when a bull run comes and everyone will start to sell their Bitcoins and some other coins into fiat the network will be congested.

So I think if we buy Stable coins with some stable volume, we will no longer need to worry about unable to sell our bitcoin into fiat.
Rather we only need to do this thing right? is this some acceptable alternative or no?

The existence of stable coins is only to get convenience when we get profit from trading results, if we use fiat currency, it will incur additional costs to convert from Bitcoin to fiat, stable coins can be used at any time without worrying about the price going down and we can use it without worrying

Yes that's the main reason why stable coins are I vented and even I use it for the same purpose because there are days when we earn good profit through trading with any crypto Hut we know that the price will dump again then we convert it to stable coins like USDT to retain the profit value instead of losing it.

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stable coins with stable volumes do not guarantee smooth transactions, usdt uses erc-20, and a few months ago experienced a network disruption worse than the same thing experienced by bitcoin. effect on the Gas increase option needed to cut the waiting time and transaction duration can be more than 1 day at that time. even so I still make it a favorite coin compared to other stable coins.

llecrf

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Quote from: yazher on October 04, 2019, 06:41:10 AM

On the other day, I think of the use of stable coins. I mean, when can we use Stable coins as an alternative fiat. You see when a bull run comes and everyone will start to sell their Bitcoins and some other coins into fiat the network will be congested.

So I think if we buy Stable coins with some stable volume, we will no longer need to worry about unable to sell our bitcoin into fiat.
Rather we only need to do this thing right? is this some acceptable alternative or no?

The existence of stable coins is only to get convenience when we get profit from trading results, if we use fiat currency, it will incur additional costs to convert from Bitcoin to fiat, stable coins can be used at any time without worrying about the price going down and we can use it without worrying

Getmon

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Quote from: yazher on October 04, 2019, 06:41:10 AM

On the other day, I think of the use of stable coins. I mean, when can we use Stable coins as an alternative fiat. You see when a bull run comes and everyone will start to sell their Bitcoins and some other coins into fiat the network will be congested.

So I think if we buy Stable coins with some stable volume, we will no longer need to worry about unable to sell our bitcoin into fiat.
Rather we only need to do this thing right? is this some acceptable alternative or no?

This is already in use this way. A lot of account owners of trading platforms for example are not allowed to move USD from and into their exchange accounts and so they are using stablecoins like USDT instead. There are certain reasons why stablecoins like USDT have a high volume, in fact the highest if I am not mistaken, considering this situation among others.

BartS

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Quote from: yazher on October 04, 2019, 06:41:10 AM

On the other day, I think of the use of stable coins. I mean, when can we use Stable coins as an alternative fiat. You see when a bull run comes and everyone will start to sell their Bitcoins and some other coins into fiat the network will be congested.

So I think if we buy Stable coins with some stable volume, we will no longer need to worry about unable to sell our bitcoin into fiat.
Rather we only need to do this thing right? is this some acceptable alternative or no?

That is the reason for those coins to exist, selling for fiat was a slow process and if the amount you were selling was too high then your account could be blocked by banks.

Stable coins allows you to sell your bitcoin or altcoins and lock your profits in a very short amount of time, and in a market where the price can change drastically in minutes stable coins perform a very needed function, so despite of what you may hear about those coins they are a nice addition to this market.

kanayaTabitha

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Quote from: yazher on October 04, 2019, 06:41:10 AM

On the other day, I think of the use of stable coins. I mean, when can we use Stable coins as an alternative fiat. You see when a bull run comes and everyone will start to sell their Bitcoins and some other coins into fiat the network will be congested.

So I think if we buy Stable coins with some stable volume, we will no longer need to worry about unable to sell our bitcoin into fiat.
Rather we only need to do this thing right? is this some acceptable alternative or no?

I think yes, the creation of those stable altcoin is to generalize the fiat money for around the world because many countries have each different fiat money. So, with same stable altcoin people can trade fiat between countries and exchanges so it will make people are easily to buy fiat when they think the market is not in a good condition for them to trade.

Bitfling

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Quote from: yazher on October 04, 2019, 06:41:10 AM

On the other day, I think of the use of stable coins. I mean, when can we use Stable coins as an alternative fiat. You see when a bull run comes and everyone will start to sell their Bitcoins and some other coins into fiat the network will be congested.

So I think if we buy Stable coins with some stable volume, we will no longer need to worry about unable to sell our bitcoin into fiat.
Rather we only need to do this thing right? is this some acceptable alternative or no?

From what I understand, stable coins were created to bridge the purchase of crypto because there were no direct transactions using fiat money at that time. But now there are several exchangers that facilitate deposits and transactions with fiat money directly. If direct transactions using fiat money can be used on all exchangers, I think stable coins will no longer be useful

karanggatak

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yes I think stable coins like USDT are good innovations in cryptocurrency. with a stable coin we can store the results of our profits from investing or trading crypto safely. without worrying the surges that are common in other cryptos. and usdt can be used as an ideal payment tool. and also usdt is now in fifth position as CMC's top coin. so I think we need bitcoin to make a profit and we need usdt as a place to save our money.

pixie85

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I don't like stablecoins. You don't know what you're buying really. They are based on trust just like fiat but you at least know that your fiar won't lose value in a day. I wouldn't be so sure about stablecoins. They can go bankrupt along with the company that issued them and we don't know how much of them is really backed.

People like them and they use them we can see it by looking at volume. I won't use them but if other traders like them there's a reason for their existence.

aemma

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Quote from: yazher on October 04, 2019, 06:41:10 AM

On the other day, I think of the use of stable coins. I mean, when can we use Stable coins as an alternative fiat. You see when a bull run comes and everyone will start to sell their Bitcoins and some other coins into fiat the network will be congested.

So I think if we buy Stable coins with some stable volume, we will no longer need to worry about unable to sell our bitcoin into fiat.
Rather we only need to do this thing right? is this some acceptable alternative or no?

Stable coins is actually a safe heaven for all crypto traders, enthusiasts and so on, whether there is bull run or not most people convert to it for various purposes. For traders to hedge their funds against volatility they convert to USDT and its likes. For most investors who always gets associated with IEO etc, they always keep their funds in stablecoins for easy conversion. So to me, I think Stablecoins are playing a huge role in this space, thus the reason there are more than 1.

the rise

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Quote from: tippytoes on November 08, 2019, 02:09:17 PM

And the potential problem that may arise from stable coins is the actual truth about being pegged to a certain fiat currency or asset. If that stable coin has no real backing which I think most of these stable coins are only bluffing, then, it would cause problem to its users later on. When the project starts to having problems, then its customers may not get the value what they want. Bottomline, still hard to trust those stable coins, they still have the chance to go down to what it is pegged for.

if you talk about Usdt, that is certainly true because they are not open about the issue of audit transparency, and they still often print Tether without strong responsibility. But you can try other stable coins like Tusd (trusttoken) because they guarantee their usd reserves with escrow / transparent third parties, there are better stable coin choices in terms of long-term use.

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