Topic: What happens if a stable coin is in high demand? - page 3. (Read 631 times)
Many people will invest and trade.It will be very beneficial especially to those who are in the digital world.You can trade anytime.Many people will be intereated in investing as well.
Your question is pointless,because a coin with a stable price will never have high or increasing demand.
The price volatility and the possibility for the price to do up is what drives the market demand for a particular asset.I don't see any altcoins with a stable price.Tether is the only example,but I don't think that this is a real
cryptocurrency.Tether is fake crypto.
The price volatility and the possibility for the price to do up is what drives the market demand for a particular asset.I don't see any altcoins with a stable price.Tether is the only example,but I don't think that this is a real
cryptocurrency.Tether is fake crypto.
There is a misunderstanding of the definition of the stablecoins and linked one.
What you are talking about Tether where the price is a reflection of the value associated with it "1 USD", they claim that they put one dollar in a bank account and produces "1 Tether blockchain value."
So the volume of Tether tokens increases when people want to buy bitcoin, so they buy Tether for it, as it happens when selling.
For more read [1].
[1] Bloomberg: $500 million in Tether (USDT) Has Made No Impact on Bitcoin (BTC) Price
What you are talking about Tether where the price is a reflection of the value associated with it "1 USD", they claim that they put one dollar in a bank account and produces "1 Tether blockchain value."
So the volume of Tether tokens increases when people want to buy bitcoin, so they buy Tether for it, as it happens when selling.
For more read [1].
[1] Bloomberg: $500 million in Tether (USDT) Has Made No Impact on Bitcoin (BTC) Price
Let's look at thether. When there are big corrections the demand for Tether is astrnomical, it has almost the same voulume as BTC on exchanges and it's supply can never end. Look how much Tether is being printed constantly. Most important thing is that it is back by a true US dollar.
There is a fix nunber of token in contract.
If the price of a coin is stable and suddenly have high demand from the people there will be shoetage due to holdings.
The price will rise even golds have this kind of nature.
If the price of a coin is stable and suddenly have high demand from the people there will be shoetage due to holdings.
The price will rise even golds have this kind of nature.
I think the price of altcoin is in great demand, especially for us the prices of bitcoin and ethereum will also increase, so for them they will also find it easier to get a lot of profits.
Stable coins sometime can be not-so-stable, we have already seen this phenomenon with Tether. Also, you can take a look at what's happened to Money Market funds in 08.
In the cryptomarket , if a stable coin is in high demand , the ratio is still the same ,of tgat demand is high and the supply of coin is very scarce then the price of this stable coin in the market will rose high because of its high demand, coins in high demand ,will have itscprice value elevated higher than ususl demand.
I think you are misinformed about the stable coins because they will always out number themselves as compared to the other coins and they know it very well because they already know people will tend to buy it more and more as soon as the south direction of the market has started to rise up. I guess this is why they are unlimited in the number. Mostly the coins which are stable coin are made un such way that they will always fulfil the demand by having more supply emitted constantly over the time. So better check that twice, they produce more supply thats why they can keep the price stable even in the demand situation.
i think the stable coin always has fixed supply, so, the coin can't be created and destroyed based on the demand
You are certainly not wrong with respect to the supply but since it is centralized and controlled, most times, stable coins supply can be increased at any point just to meet up with the demand which is one of the reasons USDT gets minted most times, though they claim it is tied to real fiat available in the projects bank account.
What I simply see is the fact that they always will have a way to work round it since like I said, they are mostly centralized. In the case where some people are left out, I want to assume it cannot be that bad that no one will find it hard to get even into fiat since most times, it is like an auction and will variably have to sell even at loss. Remember someone elses loss is someone elses gain. Someone should correct me if I am wrong as well though.
What I simply see is the fact that they always will have a way to work round it since like I said, they are mostly centralized. In the case where some people are left out, I want to assume it cannot be that bad that no one will find it hard to get even into fiat since most times, it is like an auction and will variably have to sell even at loss. Remember someone elses loss is someone elses gain. Someone should correct me if I am wrong as well though.
Most stable coins have a variable demand as is the case with coins like Tether. The price can fluctuate in times of high or low demand but a very small amount because people know they're losing out if they trade in such times.
In your example the expectation for the fall in the crypto market would have to exceed the loss they'll get for buying the stable coin at a higher price or selling it at a lower dollar price.
In your example the expectation for the fall in the crypto market would have to exceed the loss they'll get for buying the stable coin at a higher price or selling it at a lower dollar price.
A stable coin is any cryptocurrency pegged to a stable asset, such as gold or fiat currencies. In theory, a stablecoin will remain constant in price, as it is a representation of a known amount of an asset.
My question is: Does a stable coin have a set total coin supply? Or does it have to be able to create and destroy based on the demand?
The image in my head goes like this:
A stable coin pegged to a currency started off its business saying it would have a coin supply of $5 billion. Everything works well until one day, the crypto market goes south and everyone rush to buy the stable coin. The coin is unable to sell to everyone because the demand for the coin is too high, so some people are left out.
Please correct me my misconception
My question is: Does a stable coin have a set total coin supply? Or does it have to be able to create and destroy based on the demand?
The image in my head goes like this:
A stable coin pegged to a currency started off its business saying it would have a coin supply of $5 billion. Everything works well until one day, the crypto market goes south and everyone rush to buy the stable coin. The coin is unable to sell to everyone because the demand for the coin is too high, so some people are left out.
Please correct me my misconception
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