Topic: What is a stablecoin? - page 2. (Read 1038 times)
It seems to me the most stable coin at the moment is bitcoin and I invest in it because I am confident in its further growth
here's one of the few papers about that question:
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2508296
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2508296
Yes, the more the sphere of cryptocurrencies develops, the more there will be a need for such tokens. But the question is. How to make these projects?
Yes that's the question!
As said, the double coin scheme with a share coin backed by an external cryptoasset and a stable coin tethered to a reference basket by a decentralized reserve asset bank is the most promising approach IMHO....
A token like USDT is a stable currency.
There are QC, and this token is the same stable coin, which is linked to RMB one to one.
There are QC, and this token is the same stable coin, which is linked to RMB one to one.
As there is no active usage of crypto coins in real life for now, I think people do not take an interest in stable coins for now.
When the crypto is used frequently and effectively, they will be needed, for sure.
When the crypto is used frequently and effectively, they will be needed, for sure.
Yes, I agree. But the lack of a decentralized, permissionless, stable coin is one of the main reasons for not having a true real life usage for cryptos....
Yes, the more the sphere of cryptocurrencies develops, the more there will be a need for such tokens. But the question is. How to make these projects?
As there is no active usage of crypto coins in real life for now, I think people do not take an interest in stable coins for now.
When the crypto is used frequently and effectively, they will be needed, for sure.
When the crypto is used frequently and effectively, they will be needed, for sure.
Actually there isn't a true stable coin, fiat or crypto.
However, in my perspective, a true stable-coin is exactly what we need, and I'm waiting keen for someone who will be able to implement that kind of feature in the near future, It is probably the missing brick in the Nakamoto vision.
The most fascinating model I've ever seen in that field, is a kind of Hayek double coin system backed by an external "cryptoasset" as reserve asset. Essentially a double coin system made by a stable coin tethered to a reference basket, and a share coin, offered by an IPO and paid by whatever the best external crypto-asset would be available (actually, bitcoin).
The share-holders would be, in fact, a sort of DAO, acting as a Decentralized Reserve Asset Bank, keeping the stable-coin tethered to the reference basket by using the bitcoin reserve, obviously everything being regulated by an immutable, permissionless, distributed ledger's protocol/algorithms.
That kind of stable-coin would be emitted or bought by the the DRAB to keep its purchasing power in a predefined channel with the reference basket. The shares would be backed by bitcoins, so that, the asset, will be used for its primary essence. Also, new shares, should be emitted in exchange of bitcoins, thus increasing the BTC asset reserve of the DRAB, but not diluting the shares.
In this scheme, the protocol proposed for the distributed ledger consensus, by some of its supporters, would be something called "proof of payment", where "miners" would use the external crypto asset (bitcoin) to concur for the Block Validations, by offering a rational asset amount (compared to the share price), exactly as a POW-miner offers his hashing power and electricity in a POW protocol.
All the bitcoins spent for that, will be not burnt like in a Proof-of-Burn protocol, but will simply go to increase the asset reserve of the DRAB.
Anyone would be able to build up his System, as is to create a new "cryptocurrency", but by an IPO, so investing his own funds and not using money from others as with any sorts of ICOs or crowds.
In fact, the validity of the reference basket (that the DRAB should be able to change and regulate in some way) and the team, building up and advertising a good platform, should be, really, the major factors for the success of any of those "Hayek systems".
Non-fungibility between the 2 coins, an asset reserve made by an external crypto-commodity, as well as the proof-of-payment idea, are the main features of this concept.
This scheme could be extended (with some obvious differences) as well to actual fiat central banks, in some way replicating a gold standard 2.0: a CriptoGold standard. The reference basket would be than the fiat currency of that central bank, with probably no need for shareholders, and, probably, fast transactions and low fees would be the major resting features of what the cryptos offers.....but the external reserve asset, BTC in this case, should gain value and would not be in exponential need for scaling, as well as the share-coin, because the stable-coin would cover that need.
Some experts say that Hayek theory is in contrast with the BTC revolution despite some evident similarities, and with good reasons: because of its non-fungibility, scarcity, thus extreme volatility and lack of unit of account. The non inter-fungible Double coin idea backed by an external crypto asset, would make the Hayek dream of healthy competition between privates money systems possible, and open the route for even extremely different visions of a monetary cultural shift.
However, in my perspective, a true stable-coin is exactly what we need, and I'm waiting keen for someone who will be able to implement that kind of feature in the near future, It is probably the missing brick in the Nakamoto vision.
The most fascinating model I've ever seen in that field, is a kind of Hayek double coin system backed by an external "cryptoasset" as reserve asset. Essentially a double coin system made by a stable coin tethered to a reference basket, and a share coin, offered by an IPO and paid by whatever the best external crypto-asset would be available (actually, bitcoin).
The share-holders would be, in fact, a sort of DAO, acting as a Decentralized Reserve Asset Bank, keeping the stable-coin tethered to the reference basket by using the bitcoin reserve, obviously everything being regulated by an immutable, permissionless, distributed ledger's protocol/algorithms.
That kind of stable-coin would be emitted or bought by the the DRAB to keep its purchasing power in a predefined channel with the reference basket. The shares would be backed by bitcoins, so that, the asset, will be used for its primary essence. Also, new shares, should be emitted in exchange of bitcoins, thus increasing the BTC asset reserve of the DRAB, but not diluting the shares.
In this scheme, the protocol proposed for the distributed ledger consensus, by some of its supporters, would be something called "proof of payment", where "miners" would use the external crypto asset (bitcoin) to concur for the Block Validations, by offering a rational asset amount (compared to the share price), exactly as a POW-miner offers his hashing power and electricity in a POW protocol.
All the bitcoins spent for that, will be not burnt like in a Proof-of-Burn protocol, but will simply go to increase the asset reserve of the DRAB.
Anyone would be able to build up his System, as is to create a new "cryptocurrency", but by an IPO, so investing his own funds and not using money from others as with any sorts of ICOs or crowds.
In fact, the validity of the reference basket (that the DRAB should be able to change and regulate in some way) and the team, building up and advertising a good platform, should be, really, the major factors for the success of any of those "Hayek systems".
Non-fungibility between the 2 coins, an asset reserve made by an external crypto-commodity, as well as the proof-of-payment idea, are the main features of this concept.
This scheme could be extended (with some obvious differences) as well to actual fiat central banks, in some way replicating a gold standard 2.0: a CriptoGold standard. The reference basket would be than the fiat currency of that central bank, with probably no need for shareholders, and, probably, fast transactions and low fees would be the major resting features of what the cryptos offers.....but the external reserve asset, BTC in this case, should gain value and would not be in exponential need for scaling, as well as the share-coin, because the stable-coin would cover that need.
Some experts say that Hayek theory is in contrast with the BTC revolution despite some evident similarities, and with good reasons: because of its non-fungibility, scarcity, thus extreme volatility and lack of unit of account. The non inter-fungible Double coin idea backed by an external crypto asset, would make the Hayek dream of healthy competition between privates money systems possible, and open the route for even extremely different visions of a monetary cultural shift.
stablecoin? all coins are stable, the unstable is the price.
You will still have 100 ETH in your asset deposit until you redeem it with something else. As long as you do not trade it, you will still have 100 ETH. Your ETH is stable.
Price depends on demand and supply in the market, even the best coin will experience price fluctuations. No one can predict it unless you have 60% of all current digital assets
You will still have 100 ETH in your asset deposit until you redeem it with something else. As long as you do not trade it, you will still have 100 ETH. Your ETH is stable.
Price depends on demand and supply in the market, even the best coin will experience price fluctuations. No one can predict it unless you have 60% of all current digital assets
The prime function of a stablecoin is stability.
In these times of volatility, people are looking for a stablecoin because they want to be sure its value tomorrow will be predictable and close to today’s value.
This criterion favors fiat-backed tokens as they will track the price of the underlying asset rather than other digital assets and therefore most of them are easy to value... for example Tether and their cryptocurrency USDT pegged to the US Dollar.
But it was recently announced that Tether received subpoena from the U.S. Commodity Futures Trading Commission (CFTC). Would you agree there is room for improvement? What other stablecoins do you know/support?
In these times of volatility, people are looking for a stablecoin because they want to be sure its value tomorrow will be predictable and close to today’s value.
This criterion favors fiat-backed tokens as they will track the price of the underlying asset rather than other digital assets and therefore most of them are easy to value... for example Tether and their cryptocurrency USDT pegged to the US Dollar.
But it was recently announced that Tether received subpoena from the U.S. Commodity Futures Trading Commission (CFTC). Would you agree there is room for improvement? What other stablecoins do you know/support?
I haven't read anything about a subpoena regarding Tether. But I'm not really following that closely to be honest.
Tether and TrueUSD are fiat-collatarized stablecoins.
Another form are crypto-collatarized stablecoins.
There is an article you can read about those special coins -> https://hackernoon.com/an-overview-of-stablecoins-cf3fac75dcf7
I think that steblecoin simply necessary for the market. In addition, the ico projects are expected to raise money in that currency. Because it is not the case when a team collects the same amount of ether and then it turns out that he fell by 60%
For I know, the most stable coins is not exist. Even though the USDT and QC( USDT is equal to US dollar, QC equal to China RMB). This is a investment market, so the absolutely stable is hard to maintain.
only traditional coin are stablecoin that exist one this days. but in cryptocurrency i think this is not existing because lot of traders do some dump and pumping of coin thats why it will never have this type of coin.For I know, the most stable coins is not exist. Even though the USDT and QC( USDT is equal to US dollar, QC equal to China RMB). This is a investment market, so the absolutely stable is hard to maintain.
only traditional coin are stablecoin that exist one this days. but in cryptocurrency i think this is not existing because lot of traders do some dump and pumping of coin thats why it will never have this type of coin.
The most stablecoin I know (or rather new of) was Bitconnect but where is Bitconnect today? This shows that for a coin to last long it has to be unstable. Price movement should go up or down at relative intervals and not just go up and keep going up due to market manipulation.
The main problem of any stable coin is the lack of transperancy! All of them are centralized and any amount of tokens can be issued! Just look at the Tether! They have printed 120 mil more tokens! And how can I ensure that all of that 120 mil tokens are backed?? It is not the decentralization at all, the only connection with blockchain here is just the name "blockchain project"
Well, there are plenty other stable coins, as Heaven or LibreCash. As for the last it is based on ETH smart contracts and all the info about backing is visible, u may check any time u want how much are backed and how may tokens is issued. TrueUSD is also a good option Well...Fine with u,i will deeply investigate how LibreCash works, probably Im missing smth
Stablecoin is growing in popularity and has gained traction since last year. However, it seems that most crypto viewers have trouble understanding the concept of 'stablecoin'. No one is to blame for this mainly because of the fact that they are quite difficult concepts to grasp, especially given that most projects are not ready for use on a large scale, or just white paper, which is always elusive. We should to support stablecoin to succeed in the future
A stablecoin is an asset that offers price stability characteristics, which makes it suitable for certain functions, such as a: medium of exchange, unit of account.
if what they are offering is a concept of asset price stability, there probably will not be too many people who will be interested because the price is stable and that means it will be hard to find profit, because the conditions are less fluctuating. but if offered about the security system on our assets, maybe much to attract the attention of investors The main problem of any stable coin is the lack of transperancy! All of them are centralized and any amount of tokens can be issued! Just look at the Tether! They have printed 120 mil more tokens! And how can I ensure that all of that 120 mil tokens are backed?? It is not the decentralization at all, the only connection with blockchain here is just the name "blockchain project"
Well, there are plenty other stable coins, as Heaven or LibreCash. As for the last it is based on ETH smart contracts and all the info about backing is visible, u may check any time u want how much are backed and how may tokens is issued. TrueUSD is also a good optionThe main problem of any stable coin is the lack of transperancy! All of them are centralized and any amount of tokens can be issued! Just look at the Tether! They have printed 120 mil more tokens! And how can I ensure that all of that 120 mil tokens are backed?? It is not the decentralization at all, the only connection with blockchain here is just the name "blockchain project"
Well, there are plenty other stable coins, as Heaven or LibreCash. As for the last it is based on ETH smart contracts and all the info about backing is visible, u may check any time u want how much are backed and how may tokens is issued. TrueUSD is also a good option
I dont think any coin can fixed and stable because its not centralized to control its value. Crypto market fluctuate all the time and there are many alt coins coming to market everyday.
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