Topic: What do you think about stablecoins and price volatility? - page 2. (Read 314 times)
If you're comparing them to bitcoin nowadays then the main reason is they're more safety to invest with since there are lower volatility and lower risk. However lower volatility also make stable coin like USDT less attractive to investors, rather than stable i should say its more like the price is flat and never exceed a number and all of that make investing in these kind of coins later is just the same as when you're investing in financial investment or gold.
Hey guys, saw this read today about stablecoins and I'm curious what you think about them. Personally not a fan of tether for obvious reasons lol. Heard about the up and coming havven which isn't backed by fiat or gold. All very interesting projects that can lead to everyday transactions.
https://www.forbes.com/sites/shermanlee/2018/03/12/explaining-stable-coins-the-holy-grail-of-crytpocurrency/#71d1bb314fc6
I do not like the idea of coins that are pegged to something to become stable I know that such coins offer advantages to traders since they do not have to exchange their cryptocurrencies to fiat all the time, but such coins can be easily manipulated as well since the ones creating that cryptocurrency could state they are holding more dollars or gold than they actually are and when it is discovered they lied the price will drop like a rock. https://www.forbes.com/sites/shermanlee/2018/03/12/explaining-stable-coins-the-holy-grail-of-crytpocurrency/#71d1bb314fc6
A stable coin would be most appreciated by companies. If bitcoin would be very stable I think most would have chosen it to replace fiat currency. The idea of volatility allows coin buyers to gain profit but not the companies who wanted to use it for their online transactions. It's hard for coins tobbe used by both with different interest and uses.
I'm getting more and more disappointed each time I see articles of such qualities on Forbes (maybe it is somehow connecred with the offers of paid publications from the servicce board, duno).
Anyway a stablecoin (lets just say USDT as it is the most popular one and the idea of those coins iss the same, "our stuff is safer then the previous one") is a straight way to nowhere. No mater how good will be your coin. The initial idea of 1:1 is bad. To make this thing work you have to store the same amount of those coins in USD. Right now Tether should have about 2.2$ billions if they need to back all their coins. I highly doubt that they have those money. Also the market is growing together with the demand. And with all those things there is still a high risk that the stablecoin will face some problems and won't be backed 1:1.
The official issuer of the foat currency is the only ine who can establish the safe stablecoin connected with this currency.
Anyway a stablecoin (lets just say USDT as it is the most popular one and the idea of those coins iss the same, "our stuff is safer then the previous one") is a straight way to nowhere. No mater how good will be your coin. The initial idea of 1:1 is bad. To make this thing work you have to store the same amount of those coins in USD. Right now Tether should have about 2.2$ billions if they need to back all their coins. I highly doubt that they have those money. Also the market is growing together with the demand. And with all those things there is still a high risk that the stablecoin will face some problems and won't be backed 1:1.
The official issuer of the foat currency is the only ine who can establish the safe stablecoin connected with this currency.
I don't know what everyone else is saying lol. I see lots of potential in Havven just based on the infrastructure they have. Dual token system where it's not pegged to fiat? genius. Thought this was a good read about them - https://www.crowdfundinsider.com/2018/03/129035-record-breaking-havvens-crypto-blockchain-monetary-system-stablecoin-closes-90-minutes/
In terms of tether and the others, just looking at the cons is enough for me to opt out. There is a huge gap in the market for a stablecoin, it just comes down to execution.
In terms of tether and the others, just looking at the cons is enough for me to opt out. There is a huge gap in the market for a stablecoin, it just comes down to execution.
If cryptocurrencies were stable then they would get virtually no attention. The reason why bitcoin began receiving its initial coverage was due to the massive price rises in a relatively quick time span. When it comes to tether i dont even see tether a crypto due to the fact that its just a way for exchanges to allow users to trade their coins into usd without having to deal with the regulations that come with using usd.
Pegged-value coins are very useful for me as they let me able to store wealth in an indeed stable, and decentralized way.
I'd never use tether due to their shady practices and they aren't much decentralized, they are just mean to be easily transferable between exchanges
I prefer coins like bitUSD or bitCNY which are backed by bitshares, usable in his decentralized exchange, and even start to be used by other exchanges like aex
I think it worth noting there is also other pegged-coins on the bitshares (bts) network, like bitGOLD and bitSILVER. A good way to invest into metals without having to store it
I'd never use tether due to their shady practices and they aren't much decentralized, they are just mean to be easily transferable between exchanges
I prefer coins like bitUSD or bitCNY which are backed by bitshares, usable in his decentralized exchange, and even start to be used by other exchanges like aex
I think it worth noting there is also other pegged-coins on the bitshares (bts) network, like bitGOLD and bitSILVER. A good way to invest into metals without having to store it
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Create whatever kind of coin you choose, I don't care all I ask is that you provide us with a transparent way to confirm your blockchain. I don't believe Tether has done this and if Havven and others fails to do the same, I will write them off as craptokens that cannot offer the simplest request one can make of a distributed ledger system.
Some day there may be a fully legitimised stable coin. Until then I won't be bothering.
Tether's done an impressive job so far of maintaining its value. Every previous attempt like Nubits has had phases where the peg went down the toilet.
Alternatively more regulation and more professional exchanges may increase the amount of exchanges where real fiat is available, and squash the attempts at welding fiat to alts as a condition of that.
Tether's done an impressive job so far of maintaining its value. Every previous attempt like Nubits has had phases where the peg went down the toilet.
Alternatively more regulation and more professional exchanges may increase the amount of exchanges where real fiat is available, and squash the attempts at welding fiat to alts as a condition of that.
That is a nice break down of the stable coins. They will likely be lousy "investments" ... I mean, they are designed to make increase or decrease in price ... but they may be attractive for a quick safe haven to throw your coins into in a sell off, or as the article mentioned, may actually become useful for everyday transactions.
Store owners will likely continue to avoid Bitcoin and other high volatility coins, but may accept something like the coins mentioned.
Store owners will likely continue to avoid Bitcoin and other high volatility coins, but may accept something like the coins mentioned.
I'm not that familiar with those coins except Tether. I'm hearing nowadays, Forbes is one of the best way to advertise or shill some coins. So those coins that are indicated in that article is just base on his opinion and giving people an idea that they want to pump these coins.
I'm not familiar with the other altcoins mentioned in the list except for tether Few months back I wanted to give tether a try until I found out some issue about it now i'm just watching them. Before these coins can be used to everyday transactions they should prove that these coins are reliable than any other alts because if not this will be hard task to achieve. Most of them sounds good to use but I would stick to the old reliable fiat for now because it's where everyone is used to transact and most people from my place accepts it than crypto.
Hey guys, saw this read today about stablecoins and I'm curious what you think about them. Personally not a fan of tether for obvious reasons lol. Heard about the up and coming havven which isn't backed by fiat or gold. All very interesting projects that can lead to everyday transactions.
https://www.forbes.com/sites/shermanlee/2018/03/12/explaining-stable-coins-the-holy-grail-of-crytpocurrency/#71d1bb314fc6
https://www.forbes.com/sites/shermanlee/2018/03/12/explaining-stable-coins-the-holy-grail-of-crytpocurrency/#71d1bb314fc6
IMO, stable coins and volatility coins have their pros and cons. Stable currencies like USDT help investors avoid losses when the exchange rate drops rapidly; they will exchange to USDT and hold to wait for the exchange rate to bottom and to continue investing. Volatility coins such as Bitcoin, Ethereum, NEO and the rest of the cryptos are volatile; the advantage is that they bring huge profit to investors but more risk to invest.
Hey guys, saw this read today about stablecoins and I'm curious what you think about them. Personally not a fan of tether for obvious reasons lol. Heard about the up and coming havven which isn't backed by fiat or gold. All very interesting projects that can lead to everyday transactions.
https://www.forbes.com/sites/shermanlee/2018/03/12/explaining-stable-coins-the-holy-grail-of-crytpocurrency/#71d1bb314fc6
https://www.forbes.com/sites/shermanlee/2018/03/12/explaining-stable-coins-the-holy-grail-of-crytpocurrency/#71d1bb314fc6
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