Why they always attempt to create a stable kind of coin like TUSD?

Faeton

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Quote from: silent17 on October 24, 2018, 02:01:34 PM

I'm just curious, why do exchange always attempt to create new kind of cryptocurrency that can replace USD?
In my opinion, It's much better if you can just convert it directly to USD, so trader may assure that their money in the trading site is really equal to 1usd.

What is your option on this matter?

In fact, stable coins are very convenient to use. Sometimes it becomes necessary to simply withdraw funds from cryptocurrency, but without transferring them to fiat. This may be, for example, when the cryptocurrency begins to fall in price. Or it is just necessary to withdraw it urgently for transfer to another coin, however, it’s not yet time to convert to another coin. Or you need to convert to a certain coin, and there is no direct pair for exchange. Such cases can be many. Therefore, in these cases, stable coins are irreplaceable.

PsylockReborn

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Quote from: bitChipper on October 24, 2018, 02:55:26 PM

Quote from: silent17 on October 24, 2018, 02:01:34 PM

I'm just curious, why do exchange always attempt to create new kind of cryptocurrency that can replace USD?
In my opinion, It's much better if you can just convert it directly to USD, so trader may assure that their money in the trading site is really equal to 1usd.

What is your option on this matter?

A stable coin backed by 1 USD functions better on a blockchain, ya traders could convert it to directly to USD but what if then they want to move it to another exchange? It would have to go through a bank and then to the other exchange. This is why tether was so popular, it was a away for traders to keep away from the volatility but still have the benefit of the blockchain.

As Dimon said ultimately it will be US dollars moving around on a blockchain....not bitcoin, unfortunately he was somewhat right. Undecided

I agree with you on this. This is for the convenience of everyone for we all know that every transactions that should be done using USD will go through a bank. This will lessen the burden and fees.
USDT was made for us crypto enthusiasts to have a safe haven in times of huge dips since its value is stable.

For me the most exciting part of bitcoin and other crypto is its volatility. There's always room for speculations and possibility for us to earn huge profits due to the volatile nature. It would be boring if all crypto values will be stable and fluctuations are predictable. The thrill and excitement which separates us from trading stocks will be gone.

Ozero

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Quote from: shield132 on October 24, 2018, 02:59:25 PM

Everyone has different wishes and privileges. Haven't you ever thought about saving some money in crypto if your bank accounts and etc gets locked for some reasons? And haven't you thought that if you convert usd in btc today and tomorrow you'll need it, you may lose your investment? So for this reasons we need something stable, profit doesn't matter, we know we save 100 usd and after 1 year we still have 100 usd in crypto, don't have to worry on rise and fall.

Yes, quite right, stable coins in this case serve as a good buffer between a cryptocurrency and a common currency. Also, stable coins are very good if you need to transfer the existing cryptocurrency to another cryptocurrency, and there is no direct pair for exchange. Either you just need to urgently withdraw your funds from a specific cryptocurrency, but you have not yet decided what to do with it further, or until there are no suitable conditions for transferring them to the desired cryptocurrency and they should arise over time. In general, stable coins are very convenient in many cases.

dothebeats

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Main reason is for seamless transfers in between exchanges when a trader wants to move funfs without compromising the value of his assets. It can also serve as a hedge in tough times when a trader decides to stop trading for a while and get back to action once everything settles down.

Convenience and hedging are the two reasons I see why they created stablecoins. They aren't backed by actual dollars but somehow, the ones responsible on the inception of these coins convinced people that they are useful.

silent17

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Quote from: bitChipper on October 24, 2018, 02:55:26 PM

A stable coin backed by 1 USD functions better on a blockchain, ya traders could convert it to directly to USD but what if then they want to move it to another exchange? It would have to go through a bank and then to the other exchange. This is why tether was so popular, it was a away for traders to keep away from the volatility but still have the benefit of the blockchain.

As Dimon said ultimately it will be US dollars moving around on a blockchain....not bitcoin, unfortunately he was somewhat right. Undecided

I like your opinion with regards to changing of exchange, I think that is really true that we cannot use send the usd to other exchange unless it is a Tether. I think this is one of the reasons we really tether so we can transfer our coins without losing its value.

The point i was referring to in my question was I was looking for when you use the same exchange, I want to have my coins to have a permanent value, as of the moment the only exchange that I see doing this is an exchange in the Philippines

as you see in this exchange, you can directly trade your BTC and other cryptocurrency to fiat. for it to became stable. just like what we are doing to TUSD.

gentlemand

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Quote from: DooMAD on October 24, 2018, 05:36:48 PM

I'd have thought it was pretty obvious. Most shitcoins never come close to achieving parity with the dollar and are usually worth less than a fraction of a penny. But if you could print a few million tokens out of thin air and convince people that those tokens were immediately worth the same amount in USD, so people started exchanging them, that would be the easiest money you ever made in your life.

"Yeah, here's another 500 million of them. Yeah, I've definitely got those backed by real dollars. No, I can't prove it right now." Roll Eyes

If you run towards a brand new stablecoin put together by anonymous nobodies then you are indeed cruising for a bruising. I've never really figured out how tether managed to reassure enough people.

circle or coinbase would be finished overnight if they weren't 100% above board.

DooMAD

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I'd have thought it was pretty obvious. Most shitcoins never come close to achieving parity with the dollar and are usually worth less than a fraction of a penny. But if you could print a few million tokens out of thin air and convince people that those tokens were immediately worth the same amount in USD, so people started exchanging them, that would be the easiest money you ever made in your life.

"Yeah, here's another 500 million of them. Yeah, I've definitely got those backed by real dollars. No, I can't prove it right now." Roll Eyes

gentlemand

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Here's what I don't get, why isn't everyone who is not tether collaborating on one coin? What use to the wider world is multiple stablecoins? It just makes for weak and fragmented markets.

I don't really understand the underlying aims yet. Perhaps it'll become clearer. Some think it's to get everyone safely out of tether. That's v altruistic. Altruism is not a traditional crypto industry strong point.

khaled0111

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As part of the cryptocurrency ecosystem, exchanges won't use a Fiat currency like USD.
But they have to use a coin with fixed value (needed in many cases), using USD or EURO is the easiest way since Evert one know what they are.

bartolo

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Quote from: silent17 on October 24, 2018, 02:01:34 PM

I'm just curious, why do exchange always attempt to create new kind of cryptocurrency that can replace USD?
In my opinion, It's much better if you can just convert it directly to USD, so trader may assure that their money in the trading site is really equal to 1usd.

What is your option on this matter?

For exchanges, it's easier to make their users believe that they are exchanging their coins for fiat than to reach an agreement with a bank. On the other hand, they bet on a niche market which is demanded by their users. For some reason, many people believe these coins are really stable and trustworthy.

bloodyvio

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Quote from: silent17 on October 24, 2018, 02:01:34 PM

I'm just curious, why do exchange always attempt to create new kind of cryptocurrency that can replace USD?
In my opinion, It's much better if you can just convert it directly to USD, so trader may assure that their money in the trading site is really equal to 1usd.

What is your option on this matter?

some say crypto market requires stablecoins to attract new investors
stablecoin is designed to minimize the price volatility and their value is fixed to a fiat currency
i hope that in the future banks can accept stable coins so this will make it easy for users to convert to fiat money

tenakha

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Quote from: silent17 on October 24, 2018, 02:01:34 PM

I'm just curious, why do exchange always attempt to create new kind of cryptocurrency that can replace USD?
In my opinion, It's much better if you can just convert it directly to USD, so trader may assure that their money in the trading site is really equal to 1usd.

What is your option on this matter?

So that stable money can only be traded in the same exchange, which means that it can provide earnings from interest. Also you can not make withdraw that stable money from the exchange to other, you have to change it to Bitcoin or another one. So Bitcoin's price is higher when compared with other exchanges. If you are just using an exchange, maybe this might be useful.

walemil

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I don't need to change my cryptocurrencies to fiat currency before I get stability, I should be able to get this within the cryptocurrency world and that is the problem the USDT and the like are solving. You don't need to be at the mercy of the bank to get stability.

avikz

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Quote from: silent17 on October 24, 2018, 02:01:34 PM

I'm just curious, why do exchange always attempt to create new kind of cryptocurrency that can replace USD?
In my opinion, It's much better if you can just convert it directly to USD, so trader may assure that their money in the trading site is really equal to 1usd.

What is your option on this matter?

The answer is blockchain. USD is a fiat currency which doesn't have seamless integration with the crypto exchanges. Stable coins backed by USD moves within the blockchain to provide necessary liquidity to the traders and to allow them hedging against the volatility.

Also there are many legal constraints to convert the cryptos into USD and transfer it in to a bank account located in US. Not every exchange is authorized to do that! Nowadays I have seen few exchanges are trying to build similar stable coins and I have seen two ICO with the similar plans. But I really believe that the presence of more than one stable coin will not do any good to the market unless they are able to provide liquidity to the traders. Those will just be another coin among the lot and nothing else!

shield132

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Everyone has different wishes and privileges. Haven't you ever thought about saving some money in crypto if your bank accounts and etc gets locked for some reasons? And haven't you thought that if you convert usd in btc today and tomorrow you'll need it, you may lose your investment? So for this reasons we need something stable, profit doesn't matter, we know we save 100 usd and after 1 year we still have 100 usd in crypto, don't have to worry on rise and fall.

bitChipper

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Quote from: silent17 on October 24, 2018, 02:01:34 PM

I'm just curious, why do exchange always attempt to create new kind of cryptocurrency that can replace USD?
In my opinion, It's much better if you can just convert it directly to USD, so trader may assure that their money in the trading site is really equal to 1usd.

What is your option on this matter?

A stable coin backed by 1 USD functions better on a blockchain, ya traders could convert it to directly to USD but what if then they want to move it to another exchange? It would have to go through a bank and then to the other exchange. This is why tether was so popular, it was a away for traders to keep away from the volatility but still have the benefit of the blockchain.

As Dimon said ultimately it will be US dollars moving around on a blockchain....not bitcoin, unfortunately he was somewhat right. Undecided

loveinberlin

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i think that it is a natural wish to look for stability. To my mind, everyone wants crypto market to become more stable. I hope that this will happen in the nearest future and we will enjoy stable market

silent17

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I'm just curious, why do exchange always attempt to create new kind of cryptocurrency that can replace USD?
In my opinion, It's much better if you can just convert it directly to USD, so trader may assure that their money in the trading site is really equal to 1usd.

What is your option on this matter?

Topic: Why they always attempt to create a stable kind of coin like TUSD? (Read 245 times)