Stable Currencies: Fiat vs Crypto

[GabrielleGGG]

If a stable coin does not have an 1:1 all-cash reserve, do you think this means it fails to keep its value on par with USD?

As the media questions whether Tether has enough USD reserve to support its value in the recent USDT/Bitfinex drama, SophonEX did a data analysis of fiat currencies pegged to USD and comparison to stable coins.

https://medium.com/sophonexchange/stable-currencies-fiat-vs-crypto-a2ab0a50e903?source=friends_link&sk=f34d3104f7c3ca7bbe91ae508f556e56

[Adriano2010]

If a stable coin does not have an 1:1 all-cash reserve, do you think this means it fails to keep its value on par with USD?

As the media questions whether Tether has enough USD reserve to support its value in the recent USDT/Bitfinex drama, SophonEX did a data analysis of fiat currencies pegged to USD and comparison to stable coins.

https://medium.com/sophonexchange/stable-currencies-fiat-vs-crypto-a2ab0a50e903?source=friends_link&sk=f34d3104f7c3ca7bbe91ae508f556e56

I really don't know if all crypto stable coins have real backup, and i think this will drop and is better to not save the money on stable coins, and also is real and some complain against USDT because have not real back up to fiat money.

[ricardobs]

If a stable coin does not have an 1:1 all-cash reserve, do you think this means it fails to keep its value on par with USD?

As the media questions whether Tether has enough USD reserve to support its value in the recent USDT/Bitfinex drama, SophonEX did a data analysis of fiat currencies pegged to USD and comparison to stable coins.

https://medium.com/sophonexchange/stable-currencies-fiat-vs-crypto-a2ab0a50e903?source=friends_link&sk=f34d3104f7c3ca7bbe91ae508f556e56

I think this companies lies with the first exchanges that they are listed and then other exchange have to follow suit, I am saying this because we all saw what happened in USDT, yet the price of the coin still remained at $1 after everyone has discovered that the reserve is no longer with bitfinex, so my conclusion is that once you can talk with the exchanges that you want to peg the coin to a particular rate, they would be able to do it for you.

[Red-Apple]

you can never find out whether a stable coin actually has 1:1 reserves of fiat with their token or not. even the authorities are going to have a very hard time figuring it out because if the company wants to hide it they can easily do that and prolong the investigations without any result.
all you can do is make random low quality guesses.

in the end the only thing that matters should be the fact that these "stable coins" are centralized and that is the biggest negative side of them that is so much bigger than their supply and whether it is backed by fiat 1:1 or not.

[dimonarka]

As far as I know, two months ago, this company stated that their token is no longer supported by the dollar rate and I consider it to be correct because lately cryptocurrency has become an independent ecosystem of the financial market and it seems to me that all stable Coin should be tied to an example to Bitcoin.

[delarossa]

This is the main different of Fiat currencies and crypto. I think for the greater stable currency is the fiat money, because fiat still use for everyone in around the world for the main currencies. Another thing with crypto, you will surprised if your balance of money will be increase drastically, but sometimes will decrease drastically too. This is a fluctuative situation, so you should prepared for that

[Ucy]

There are some Stablecoins that are partially pegged to fiat currencies. They are usually decentralized Stablecoins. They are pegged to gold and other stable stuff. Some are pegged to USD with cryptocurrency as reserve instead of the USD. and I understand why they do this.

The most important thing in all this is transparency and decentralization.
And It is totally wrong for developers to print coins whenever they want. They should not have the power to print the coins at all.

[Twinkledoe]

There are some Stablecoins that are partially pegged to fiat currencies. They are usually decentralized Stablecoins. They are pegged to gold and other stable stuff. Some are pegged to USD with cryptocurrency as reserve instead of the USD. and I understand why they do this.

The most important thing in all this is transparency and decentralization.
And It is totally wrong for developers to print coins whenever they want. They should not have the power to print the coins at all.

Most of these stable-backed coins don't have the actual money in possession. I believe it is more of a marketing ploy. Remember before, USDT admitted that they didn't have that much money. And now, I think they are covering that amount. I really don't see the actual value of stable coins for now.

[BicycleMan]

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