Will stable coin be the necessary thing in public chain? - page 2.

pooya87

legendary

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Quote from: Jennifer1023 on December 20, 2019, 05:13:05 AM

Maybe every public chain without a stable coin will vanish eventually. Any ideas my friend?

there is no relationship between these stable coins and cryptocurrencies. so this question doesn't make much sense to me. the fact that these coins using another chain (like Tether using bitcoin blockchain) doesn't mean the main chain is relying on them!

stable coins are only satisfying a need that exists right now. the need to first transfer money between exchanges without needing banks and second the need for something stable in market that is extremely volatile specially altcoin market.
if some day that purpose could be achieved with banks (like having faster bank transactions with lower fees and little to no KYC) then stable coins would die overnight.

Tipstar

sr. member

Activity: 1932

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Quote from: Jennifer1023 on December 20, 2019, 05:13:05 AM

Public chain with 'Bitcoin or ETH'(which price will keep going high) can support its ecosystem business going scale, Clearly the costs to the DAPP developer and the customers is going high along with.

Maybe every public chain without a stable coin will vanish eventually. Any ideas my friend?

They are at least for now. Our economy is totally revolving around fiat that's why the fiat are relatively stabler than crypto. One of the reason why people are not accepting crypto as a currency is due to it's volatility and stable coins could solve that problem to some extent.

Jennifer1023

newbie

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Quote from: DooMAD on December 20, 2019, 09:43:50 AM

The problem is that you generally have to compromise on decentralisation to achieve it. The arguments in support of "stablecoins" generally hit the same wall as the arguments in support of greater throughput, except that stablecoins hit it right away. With things like increasing blocksizes, centralisation creeps in gradually over time. But with stablecoins, right from the offset, there's generally a central entity keeping funds in reserve to (supposedly) back the digital tokens 1:1. While not everyone would agree, many would argue that's too high a cost to pay just to keep the price steady.

I have heard some decentralized stable coin solution,and I was convinced by their ideas,check this out:meter.io Glad to hear your opinion.

oleg681010

jr. member

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In the future, perhaps not, stable coins are rather needed for the transition from fiat to crypto.

DooMAD

legendary

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Leave no FUD unchallenged

The problem is that you generally have to compromise on decentralisation to achieve it. The arguments in support of "stablecoins" generally hit the same wall as the arguments in support of greater throughput, except that stablecoins hit it right away. With things like increasing blocksizes, centralisation creeps in gradually over time. But with stablecoins, right from the offset, there's generally a central entity keeping funds in reserve to (supposedly) back the digital tokens 1:1. While not everyone would agree, many would argue that's too high a cost to pay just to keep the price steady.

Jennifer1023

newbie

Activity: 23

Merit: 0

Public chain with 'Bitcoin or ETH'(which price will keep going high) can support its ecosystem business going scale, Clearly the costs to the DAPP developer and the customers is going high along with.

Maybe every public chain without a stable coin will vanish eventually. Any ideas my friend?

Topic: Will stable coin be the necessary thing in public chain? - page 2. (Read 216 times)