Bitcoin Forum

The founder of the Avalanche network, Emin Sirer, claims that the “reasonable” value of stablecoins will give them an edge over other cryptocurrencies. He believes that we will not complete the formation of the crypto market until stablecoin becomes the number one coin, that is, the first sign of the massive success of cryptocurrencies will be the fact that any stablecoin will overtake Bitcoin and become the leading digital currency.

It's understandable cause apart from being able to stabilize price volatility, stablecoins are also supported by multiple sources of assets. It could be a traditional currency like the US dollar, commodity, precious metals, or algorithmic functions, or other cryptocurrencies.

However, the risk level for stablecoins is greatly influenced by its backing, so isn't that a "too much" claim?

https://markets.businessinsider.com/news/currencies/avalanche-avax-emin-guen-sirer-founder-bitcoin-stablecoin-tether-usdc-2021-10

https://swapzone.io/blog/stablecoins

You can never compare apples and oranges. You have to compare things that are in the same category. So when you are comparing centralized tokens you have to compare them with their similar centralized tokens for example compare a stablecoin with PayPal and see which one is on top and whether the stablecoin can overtake PayPal or not.

If some day someone could invent a new technology that could ensure decentralization while having a stable value then it has a pretty good chance of replacing bitcoin. But I don't believe such a technology is even possible because of how economics work. And until then what we have are centralized, premined, mutable semi-stable coins that can't even come close to bitcoin in terms of usage let alone want to compete with it.

Besides, bitcoin value will eventually stabilize after reaching mass adoption and growing to its true potential which makes the idea of using a centralized stablecoin moot.

That is the founder of a centralized platform with a massive premine and a fundraising of about $200 million by dumping those premined AVX tokens.

Lol! Cryptocurrency market is a parallel ecosystem so it absolutely makes no sense to replicate the mainstream economic structure into the crypto market. Stablecoins are definitely needed but no so much that it overtakes bitcoin. Crypto market is all about free market where the price of an asset is driven by the market demand. Whereas stablecoins are driven by the value of its underlying assets.

In my language, we have a saying that - Baap baap hota hain!

Bitcoin will remains as the Baap of all cryptos till the time cryptos remain alive. Doesn't matter what the founder of a centralized currency thinks!

Fun fact: Most people don't even know the risks of centralized stablecoins. Most think that it's a token hence it's somewhat trustless despite being centralized. They have no idea that the stablecoins can get frozen on their wallets.

As for a stablecoin overtaking bitcoin, yea I wouldn't be surprised to be honest. But bitcoin getting kicked out of the #1 spot doesn't make it less good. Doesn't change anything.

The most important characteristic of a good cryptocurrency is decentralized. Bitcoin has it from the beginning and maintains it so far.

Altcoins are abundantly on the market but they are centralized in their core developer teams. Stable coins are mostly centralized too. Do you really think stable coins are really stable? Most of them peg with fiat and this approach does not help them to be really stable. If fiat lose their value by hyper inflation, stablecoin pegged by fiat will lose their value at the same rate or worse.

Stablecoins will never make it to the top. I would rather hold my bitcoins and wait for it to appreciate than hold stable coins and get nothing in return.
This is the principle why many would hold an appreciating asset making bitcoin stay on the top until any other appreciating coin takes it's place.
Stable coins might make it to the top temporarily for example in a bear market but in the long run bitcoin will remain in the #1 position.

Stable coins is so stagnant, i don't know if it's possible or how is that possible to happen wherein even its so obvious that bitcoin is so expensive and very high than other assets.. Infact bitcoin price is almost near at the price of silver in the market and only stablecoins can over take in it? Lol i prefer to hold bitcoin no matter what happen. Because to be honest it like your dumb holding a very stagnant asset..

I don't think stablecoins should even be counted as cryptocurrencies. In most cases, these are only digitized currencies of states. They have a generally stable value and it is unlikely that we will see that bitcoin, for example, will cost less than one dollar. Therefore, the logic of this reasoning is completely incomprehensible to me. Stablecoins will never play a dominant role among decentralized cryptocurrencies.
This will be especially noticeable when states also issue their stablecoins from central banks.

Let's talk about stable coins.
- Their value is backed up by another asset
Which does mean there is a scope for growth, there is a much less scope for crashing but at the same time there is literally no scope for this much volatility that bitcoins shows.

From 25k to 75k in a year, this sounds not only unrealistic but it's also amazing since it's coming from a market affected by COVID-19 undoubtedly.

For me bitcoins would be the top for sure because unlike bitcoins stable coins gives less returns and let's be clear on it, the third party is not really something we can push out of the picture.

So how would an asset dependent upon another asset, controlled by third party, giving way less returns and less volatile as well take over bitcoins?? That's my question.

Stablecoins are the very definition of an IOU.  It only exists to represent something else.  It barely even qualifies as crypto in my mind.  I'd argue that more people embracing IOUs is wholly antithetical to success for crypto and that this Emin Sirer character might be a bit of a pillock.

sadly it's hard to come true. it is very unlikely to shift bitcoin now or later. stablecoins may be good, but the goal of people in crypto is profit. they say adoption and so on, but their main goal is profit. if stablecoin is number one, it means that market volatility is gone. the market becomes stable and it is difficult to profit from such a situation. so if choosing which one is the best, everyone will vote bitcoin must remain number one.

I do not think banks will die in 5-10 years later as the banks are one product from the government. The government does not want to see their product will die and will do many things they can to still exist among the people. Maybe the government will modify the system and who knows, the government will try to integrate the system with the blockchain so the banks can evolve into the blockchain.

If the government allows people to use crypto and make sure the banks still exist, people will have the freedom to manage their finances and not just depend on the banks.

I'm pretty sure Emin Sirer was referring to stablecoins overtaking bitcoin in terms of either marketcap, or transaction usage. It would be exceptionally dumb to actually expect bitcoin to drop below a stablecoin in terms of unit price($1) lol.

Yea I also would not consider Stablecoins as a "pure cryptocurrency". Stablecoins will always need some underlying asset which probably is managed in a central manner. Actually it is pretty odd that they appear in rankings such as CMC...  ::)

At least the title was still a question and the thing is "it won't". I think Sirer was totally defining Bitcoin losing in terms of its market cap. To be perfectly honest, it's not impossible if they could print billions weekly, e.g. USDT.

As far as crypto remains I think BTC will continue to grow more steadily and its just the backbone of digital currency with decentralization and value giving to it by demand and supply The more users which will definitely not cease the more use case you get

Bitcoin is successful because people are investing in it, so how can people choose a stablecoin over bitcoin when they can't invest in a stablecoin.

The difference is huge, bitcoin = decentralized, while stable coin = centralized.
In fact, in the early days of crypto stablecoin is not yet created so it will not change the reality that crypto should be lead by decentralized currencies not a stablecoin.

In the event that the stablecoin is issued by the national bank of a country with a developed economy, the risks will be practically reduced to zero. In this case, the stablecoin will in fact be just another form of the national currency and, accordingly, the risks will be the same as those of fiat.

It actually makes sense. When picking a stablecoin to either hold or trade, you'd check which stablecoin has the highest trading volume because stablecoins that have higher trading volume tend to be less volatile or more "stable". You can actually sort using the column:

https://i.imgur.com/STLV819.png

He is right. One of the reason many people stay away from crypto is their belief of how unstable crypto is. Stablecoins as an investment would be a good introduction to such people.
We can see how prominent the stable coins are by marketcap. And if we are to have a bullish market, larger value would be driven to stable coins and we could probably see stable coins being on the top of crypto by marketcap. There were several predictions about which coin would replace bitcoin and it would not be a wonder if it would be Tether.

Although bitcoin tends to be corrected, overall, the digital coin with a market cap of more than US$1 trillion is still holding in the price range of US$60,000-US$63,000.we'll see how big a wave will make.

stablecoins definitely get the best portion to store the assets we have because they don't have a high risk like bitcoin. but in my opinion there is no other altcoin that can replace the popularity of bitcoin in the cryptocurency world. although bitcoin has a high risk. but it is a trade. trades that can provide profits and can also provide losses.

Why does everyone fixate on volatility where there are far more serious risks to consider?  

• Bitcoin cannot become insolvent.  Stablecoins can.
• Bitcoin doesn't have a "trusted" custodian that can renege on their promises.  Stablecoins do.
• Bitcoin cannot be completely shut down or wiped out by a single regulator or law enforcement agency.  Stablecoins can.

You aren't "storing" anything and it's not an "investment".  You are surrendering real assets in exchange for a vague promise that the IOU they've given you can later be redeemed for the same value.  It's utterly stupid.  

Trust is more dangerous than volatility.  If someone here on the forum told you they had millions of dollars worth of assets backing their random shitcoin 1:1 and then took every opportunity to avoid providing any evidence to support that claim, would you "invest" in it?  Or would you think "Actually, that sounds shady as fuck" and stay the hell away from it?

You trust blindly and it's going to get you into trouble sooner or later.

What you said is very clear where Bitcoin which is only corrected by 3% more is still able to be at a price of $63K for one unit in the market, and this indicates that the power of Bitcoin is still very large compared to others and is still able to have an impact on others. in the market.

This technically could happen one day. I mean imagine how we have so much USDT, it is just tether printing billions into the market and just let it be, there is really no hidden secret thing behind it, and that's all they do, there is really nothing we need to consider when we are talking about USDT and how it could go up, just simple printing. This means as long as the demand goes up, and as long as they can keep getting away with it, then they could one day print more than 1 trillion dollars worth and nobody could stop them.

The only thing that could ever stop them is the demand going down, when that happens they will have to pay up to get it back and that will eventually happen as we all know. This is why there is a "chance" but the demand must be going insane for that to happen, with more coins sharing the market, I doubt that it could go up that much.

Please, pearls are still pearls even in a pile of garbage. Bitcoin is still Bitcoin even though there are many shitcoins and any altcoins with thousands of types. I think you have understood what we mean. What is the meaning of an altcoin if in the end Bitcoin becomes the leader above all else. It will never be a stable coin with any concept.

Just say frankly that you prefer to store assets in stable coins? because of its stable value. But during a bull run market you just become a hypocrite to take profit and go back to the room with a stable pile of coins.

too many coins declare stablecoin but bitcoin is only one ,in terms of one it means rare like the sun that illuminates the earth and it is impossible for a star to shine without the sun ,same with this case !  so bitcoin will still be the number one asset in cryptocurrency ,I think stablecoin are not long term asset and to be honest they are only short term to minimize send from market 1 to market 2 due to the limitations of currencies in different market

If the market cap of a stablecoin is higher than the market cap of Bitcoin, then Bitcoin will be controlled by an authority. This worsens the situation of crypto which is known for its decentralized and transparent nature.
We know that currently stable coins whose number continues to grow makes us worry that stable coins will control the entire crypto market. Those who can develop stable coins freely play in the crypto market. And it will be an authoritarian crypto market.

Well, I don’t really see how having a stable coin at the top in the cryptocurrency market is going to make it successful. The reasons you have given here isn’t enough for me to really believe that, because even what you stated here can't prove that the cryptocurrency market is going to become very successful when a stable coin stays at the top of the market. The cryptocurrency market is already successful, and I don’t know what other success you are looking for that would require stable coins to achieve.

There are already lots of countries these days that are adopting cryptocurrency, and the market has been growing with lots of institutional investors becoming part of this huge success. Even the stable coins you’re talking about are paired with Fiat which keeps on depreciating every time. So, tell me how that is going to contribute to the success of the community, if it is at the top? Holding a stable coin is just the same as holding Fiat, So, what is the need?

Respectfully, no.  It's nowhere close to that.  Fiat may be effectively an IOU, but it's an IOU which is established and made statutory by nation states.  Stablecoins are IOUs which are merely blinked into existence from nowhere by corporations who are making empty promises they can't possibly keep.  It's only a matter of time before this veritable house of cards comes toppling down. 

People only think it's the same because they either don't want to acknowledge the risk they're taking, or they simply don't realise. 

That he makes his own and not to wonder since he is promoting his project, anyway.
There is no basis for that claims, everyone can do such a thing but they are absolutely wrong, can't just tell the future of crypto, nobody does, and that is why all of these are just false claims.

The existence of stablecoins cannot stop the growth of crypto and that is much more this time knowing the adoption is getting stronger. Perhaps, they have different use-cases which we could never find the competition to them.

Actually, I think that Bitcoin will also become more stable in the future. It is becoming more and more widely used as a means of payment by different companies and countries, so it will be used for buying products so it will follow the price that it is expected to be. In terms of stable coins, those of them that have collaterals are centralised, so they don't really fit into the concept of real crypto.

It depends on how will people accept Bitcoin in the future. Bitcoin is full of manipulation right now since the marketcap is still low considering how many early holders are still holding huge sum of Bitcoin. They can crash the price anytime they want buy just selling off percentage of there holdings since retail traders and exchange bot will follow once there's a selling pressure happening in the general market. Mass adaption is what we want so that Bitcoin will evenly distributed to different wallet in small part.

I don't think so, countries are just latecomers and can't have too much bitcoin, most of the bitcoin have gone into the wallets of investors and companies, these characters definitely don't want bitcoin to follow the stable price set by the country, they won't vomit bitcoin to the government and they need reasonable compensation when in bitcoin there's a lot of their enthusiasm and money. Of course, the government also did not come to such an agreement easily and since then, bitcoin's position in crypto has remained, stablecoin can't usurp bitcoin's throne because it's not crypto community money

that's what a lot of people would think. The current holdings of large amounts of bitcoin create concerns of its own for the future of bitcoin. although I'm sure trust will continue to grow. but when the time comes, some of the people who hold bitcoins in large numbers will surely let go of theirs. and that would be bad for market confidence.
equitable distribution will be a good future for bitcoin. but seeing as now the condition is already over, and we can only follow how they play.

yes you are right, so it would be really weird if stablecoins beat pure cryptocurrencies like bitcoin and took over the market. literally stablecoins don't deserve to be called crypto because everyone knows that they are centralized. So the statement that we won't be able to complete market formation before stablecoins are number one is a gross misrepresentation.

it's not that easy to replace bitcoin which is still number one, the factor of people's knowledge about bitcoin has been a conversation from the start and many make crypto assets that are stored neatly, but in crypto small things will become big.

Although small things can make a big difference in the crypto space, it is clear that replacing Bitcoin is not an easy matter for anyone because Bitcoin is able to influence others whereas Altcoins are not able to influence Bitcoin when they are pushed up and down.

Stablecoins are not going to beat Bitcoin because Stablecoins are very stable cryptocurrencies due to Stablecoins to maintain fiat currency reserves or retain large amounts of cryptocurrency tokens to issue lower amounts of stablecoins.
If I see Stablecoin will be widely used as a means of payment in the form of crypto currency. The price of USDT will affect the price of Stablecoins, I think Bitcoin will remain the most popular cryptocurrency of all time.

Don't know on what people been thinking and we know that Stablecoins aren't something that could replaced up on what Bitcoin did into this community and also demand will be always the thing matters.

We've seen that there might be some significant volume or liquidity but doesn't mean that Stablecoins would take over.I would rather be seeing this as a tool on which investors/traders

do tend to get rid or avoid volatility on which why there are some liquidity inclusion to it.It did really just have that wrong idea.