It's always easy to control your risk with stable coins. You have this upper hand against immense liquidation of market and any form of unfortunate situations.
Though the problem with this stable coin is their transparency system, they are not always clear as they usually state in their website. USDT for example, some users claimed they aren't fully backed by physical dollar which is a major problem.
Topic: Will stable coins take control of Bitcoin as crypto adoption in the future? - page 4. (Read 570 times)
June 19, 2021, 04:26:09 PM
June 19, 2021, 02:41:34 PM
A stablecoin is a cryptocurrency that is backed, added, or backed by an underlying asset. low volatility with stablecoins being the main benefit to continue to attract both individual and institutional interest. Exchange rate stability is useful for both holders and those trying to integrate Bitcoin and other cryptocurrencies into the wider financial system.
But an investemnt into stable coins makes no sense because as the name already indicates the price of them is stable. The reason why stable coins exist is the need of crypto investors for a save haven currency that is on the blockchain because if you keep your funds as FIAT on a Bank account then you can not react quickly if you suddenly want to buy a certain coin because the price dumped because a bank transfer usually takes 3 days and then the buying opportunity is probably gone. So yes stable coins are an important "tool" within the crypto-sphere but only as a place to park your funds.
June 19, 2021, 01:58:50 PM
A stablecoin is a cryptocurrency that is backed, added, or backed by an underlying asset. low volatility with stablecoins being the main benefit to continue to attract both individual and institutional interest. Exchange rate stability is useful for both holders and those trying to integrate Bitcoin and other cryptocurrencies into the wider financial system.
OK, and how exactly is that going to somehow allow stable coins to take control of the market? I can understand why stable coins exist and they perform an important function but make no mistake without bitcoin those stable coins will not exist.Also you are forgetting that in the past we have seen some assets backed by another and governments have destroyed those coins, in fact it is interesting they are tolerating stable coins but if one day they decide to not do so anymore they can confiscate a few servers, bank accounts and arrest some people and the coin will die while this is impossible to do to bitcoin.
June 19, 2021, 11:28:14 AM
It would serve as the currency when they want to enter, exit, or just take a look at the market situation without risking too much. I think that's why stablecoin is created in the first place. It doesn't compete with Bitcoin or other chains, it serve other purposes. Even if it takes the first place on the marketcap ranking, people won't buy stablecoin for the sake of holding them.
June 19, 2021, 10:53:43 AM
it won't. I think that you should compare the main purpose of the stable coin compared with bitcoin in term of its usefulness.
The main purpose of stable coin to give an alternative way for the trader to fix the scalability and it has nothing to do with the bitcoin. Bitcoin can be considered as a digital asset like gold and how it is possible for the stable coin to be like that. Stable coin is just a way to bring more people and adopters to the bitcoin. it will not take bitcoin as crypto adoption.
The main purpose of stable coin to give an alternative way for the trader to fix the scalability and it has nothing to do with the bitcoin. Bitcoin can be considered as a digital asset like gold and how it is possible for the stable coin to be like that. Stable coin is just a way to bring more people and adopters to the bitcoin. it will not take bitcoin as crypto adoption.
June 19, 2021, 10:10:19 AM
if what you mean is for payment where volatility is a bad thing, then sure, but the problem with stablecoins that are privately owned, it gives the power to the issuer to blacklist an address and freeze the balance.
it could work with decentralized stablecoins like DAI but right now it's not really widely adopted yet, after all these stablecoins are just smart contract, so it's not gonna overtake bitcoin adoption.
the best thing these stablecoins can do is to become alternative just like any other coins.
it could work with decentralized stablecoins like DAI but right now it's not really widely adopted yet, after all these stablecoins are just smart contract, so it's not gonna overtake bitcoin adoption.
the best thing these stablecoins can do is to become alternative just like any other coins.
June 19, 2021, 09:13:52 AM
adoption in what? if this is for a means of payment, indeed stablcoin has a greater chance. bitcoin is not suitable for daily payments, the price is expensive and the fees are quite large making it less suitable. but stablecoins can do that. bitcoin can do other things, like a very good investment.
June 19, 2021, 08:48:56 AM
stablecoin? look at the name is stablecoin !! do I need to read the definition again here? I think you know too.
try to compare it with the volatility of Bitcoin. then you wouldn't think that institutions keep their finances in stablecoin in the long term. because it will be very useless and not get any profit. not in investing or in a trading system aimed at taking profits. So, in stablecoin, if you continue to make it number 1, where is the growth?
remember!!! stablecoin to stabilize the price when the decline occurs, after the price spikes again, whether to stay in the stablecoin?
try to compare it with the volatility of Bitcoin. then you wouldn't think that institutions keep their finances in stablecoin in the long term. because it will be very useless and not get any profit. not in investing or in a trading system aimed at taking profits. So, in stablecoin, if you continue to make it number 1, where is the growth?
remember!!! stablecoin to stabilize the price when the decline occurs, after the price spikes again, whether to stay in the stablecoin?
June 19, 2021, 08:36:22 AM
Stablecoins would always be supporting coins to crypto market. They would co-exist while people would still prefer the crypto that changes in price. With the rise of DEFIs, people would have more choices and with inter network bridges, stablecoins would just remain as a middle step for conversion or store of value when the market is volatile. Fiat transactions are already cheaper and faster on virtual banking, there's no use of turning every crypto to stable.
June 19, 2021, 08:22:18 AM
If stablecoins are going to be supported by the mobile apps for payment I think it will also be used more than BTC especially when the users and merchants need not to exchange their BTC to their local currency. The transaction fee will also be low probably like the LN transactions.
I'm using the local app we have in our country but the fees to trade local currency to BTC is very high. It'd be attractive to use stablecoins.
June 19, 2021, 08:09:25 AM
Stablecoins are centralized, they have a company that manages the peg, and this company can easily censor transactions or freeze accounts, so stablecoins are more like payment companies than cryptocurrencies. And if payment companies don't comply with regulations they get shut down.
There are also algorithmic stablecoins they are supposed to be decentralized, but these algorithms can be gamed to attack these coins. Recently a stablecoin IRON dropped to $0.7 instead of $1 as the result of its own tokenomics.
There are also algorithmic stablecoins they are supposed to be decentralized, but these algorithms can be gamed to attack these coins. Recently a stablecoin IRON dropped to $0.7 instead of $1 as the result of its own tokenomics.
June 19, 2021, 07:36:45 AM
...low volatility with stablecoins being the main benefit to continue to attract both individual and institutional interest.
I don't see why the low or zero volatility of stable coins would attract retail and institutional investors. USDT and the others are used mainly by traders to move in and out of BTC and altcoins. Exchanges also have the option to trade directly with their bank account nowadays so I don't see the usefulness of stable coins in that case. copper member
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June 19, 2021, 06:36:36 AM
why not, if people want more stable coins then stablecoins are the right choice. and bitcoin can be an option other than a means of payment. but still even if stablecoins are mass adopted, bitcoin will still be the number one crypto.
The majority of crypto user as well as traders are here because of the volatility of the market. People here become interested on crypto due to the possible gain on short period of time. If stable coins will dominate the crypto market, I believe there will be less than market interaction anymore since everything is stable. I believe Bitcoin will become stable once all supply was already mined.
June 19, 2021, 06:26:04 AM
A stablecoin is a cryptocurrency that is backed, added, or backed by an underlying asset. low volatility with stablecoins being the main benefit to continue to attract both individual and institutional interest. Exchange rate stability is useful for both holders and those trying to integrate Bitcoin and other cryptocurrencies into the wider financial system.
What makes you think stable coins can take control of Bitcoin ?Stable coins can not help you richer. I know some few days, you can get profit from stable coins but as investors, it is not the best to invest.
Bitcoin is a speculative asset and can help you to get richer in bull trend. Bitcoin can rise 50% but you can see the same thing with stable coins. If stable coins rise 50%, they are not stable and they won't be called as stable coins.
June 19, 2021, 06:25:08 AM
why not, if people want more stable coins then stablecoins are the right choice. and bitcoin can be an option other than a means of payment. but still even if stablecoins are mass adopted, bitcoin will still be the number one crypto.
June 19, 2021, 04:09:48 AM
A stablecoin is a cryptocurrency that is backed, added, or backed by an underlying asset. low volatility with stablecoins being the main benefit to continue to attract both individual and institutional interest. Exchange rate stability is useful for both holders and those trying to integrate Bitcoin and other cryptocurrencies into the wider financial system.
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