StableCoin it's bullshit term?

[new_ethnos]

Idea of StableCoin have no real meaning.

StableCoin it should be stable regarding what?
Stable against the dollar? It means that it will be not crypto coin – it will be USD wallet.
Stable against the gold or oil? It means that it will be gold futures, not crypto coin.

Stable – it’s economic property of the coin and not a technological feature. Bitcoin can be stable like gold with sufficient prevalence.

[jseverson]

I completely agree that they're barely cryptocurrencies. They basically have no purpose other than to help facilitate crypto trading though, so people just roll with them. Cryptocurrency, as a word, has a very loose definition anyway. This is how Wikipedia defines it:

cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.

So yeah, they still kind of check out.

[cryptocrusher]

I completely agree that they're barely cryptocurrencies. They basically have no purpose other than to help facilitate crypto trading though, so people just roll with them. Cryptocurrency, as a word, has a very loose definition anyway. This is how Wikipedia defines it:

cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.

So yeah, they still kind of check out.

Just because by definition they're cryptocurrency doesn't mean that in practice they aren't something else. Have to agree that stable is misleading because the prices of all the things they're pegged to are able to fluctuate. I may create a truestable coin. At all times I will peg it to 0 dollars and it will be redeemable by me at all times.

[avikz]

Idea of StableCoin have no real meaning.

StableCoin it should be stable regarding what?
Stable against the dollar? It means that it will be not crypto coin – it will be USD wallet.
Stable against the gold or oil? It means that it will be gold futures, not crypto coin.

Stable – it’s economic property of the coin and not a technological feature. Bitcoin can be stable like gold with sufficient prevalence.

I have somewhat different idea than you! The first mistake you have made is to benchmark the definition of stable coin against the current set of definitions available. Stable coins in crypto space should have a different definition. The way bitcoin can't be bench-marked against the current definition of currency, similar way, crypto stable coins can't be bench-marked against the current definition of stable currency! That's wrong!!

Secondly, Stable coins are just a virtual representation of backed asset. If a stable coin is backed by USD, it can be called as USD future as per the current available definition, but not as per the crypto space where new sets of definitions are needed. It certainly is a economic property and not a technological one - Stablecoins represents the economic value only and not the technological aspect of it! So the argument is itself wrong! At least according to me!

I believe Stable coins are great for the crypto market because it provides convenience to the users. It surely looks like a future derivative of the backed asset, but it has many other utilities in the crypto space!

[jseverson]

-snip-

Just because by definition they're cryptocurrency doesn't mean that in practice they aren't something else. Have to agree that stable is misleading because the prices of all the things they're pegged to are able to fluctuate. I may create a truestable coin. At all times I will peg it to 0 dollars and it will be redeemable by me at all times.

I completely agree, as I have said, but if OP's beef is with the terminologies then definitions do have their place in the conversation. I get the hate, but the end of the day they're still regrettably considered to be crypto. If you're saying they shouldn't be though, well, I have no problem with that.

I don't find the word stable to be misleading at all because it's only stable relative to what it's pegged against. Creators never imply it to be stable beyond that. Some stables are more accurate than others though, as Tether has shown, which is why it's hard to trust them.

[Pmalek]

Stablecoins are not useless.

Imagine buying cryptocurrency X as your investment. A few months later the project starts losing value and your portfolio is down 5-10%. This is the part stablecoins come in. You decide to exchange your cryptocurrency X for a stablecoin in order to prevent more losses. You now have a stablecoin asset and in the weeks or months to come you notice that your cryptocurrency X has lost another 30% in value and you just saved yourself a whole lot of problem.

Yes you could have exchanged that cryptocurrency X for Bitcoin but who can say what value Bitcoin would have had in that same period of time.
But in the case of your stablecoin it will still be worth $1 or around $1 per one coin. And the USD is more stable than regular cryptocurrencies.

[cryptocrusher]

-snip-

Just because by definition they're cryptocurrency doesn't mean that in practice they aren't something else. Have to agree that stable is misleading because the prices of all the things they're pegged to are able to fluctuate. I may create a truestable coin. At all times I will peg it to 0 dollars and it will be redeemable by me at all times.

I completely agree, as I have said, but if OP's beef is with the terminologies then definitions do have their place in the conversation. I get the hate, but the end of the day they're still regrettably considered to be crypto. If you're saying they shouldn't be though, well, I have no problem with that.

I don't find the word stable to be misleading at all because it's only stable relative to what it's pegged against. Creators never imply it to be stable beyond that. Some stables are more accurate than others though, as Tether has shown, which is why it's hard to trust them.

Well said, I think a lot of people just get caught up in the word stable and think it's fixed. I see a lot of people complaining when tether is .097:1 on exchanges outside of bitfinex but never was it promised that it wouldn't be. The price can and will still fluctuate just within a very narrow range. I guess in an ideal world we would refer to them as peggedcoins instead of stablecoins, that way it would be a little clearer to the less acute members of the crypto community.

[timerland]

Idea of StableCoin have no real meaning.

StableCoin it should be stable regarding what?
Stable against the dollar? It means that it will be not crypto coin – it will be USD wallet.
Stable against the gold or oil? It means that it will be gold futures, not crypto coin.

Stable – it’s economic property of the coin and not a technological feature. Bitcoin can be stable like gold with sufficient prevalence.

You're completely right. I'm not a big fan of stablecoins either because it either relies on trust of a centralized entity, like Tether, while still having to trust that the fiat you're holding won't lose value dramatically, or the trust of a certain decentralized process, like BitUSD.

But it does play a role in some scenarios.

For example, in countries such as India where the government and the central bank has cracked down on bitcoin transactions, they have relied on stablecoins as a proxy in order to trade fiat against crypto. Of course, I would never consider stablecoins as a legitimate decentralized long term storage of wealth, nor am I concerned about bitcoin's fluctuations at the moment. I completely agree with the statement that with enough adoption, bitcoin will see intrinsic stability.

[mu_enrico]

Yeah, and don't forget about how they make profits!
This dev/company who create and maintain this stable coin network need to make money. I'm pretty sure with tx fees alone, they wouldn't be able to cover their operational costs.
How they secure their vault? Can they be audited? Did they implement fractional reserve policy? These questions need to be addressed before we can say "stable."
IMO the purpose of this stable coins is only to make tx fees cheaper, maybe to replace international wire transfer and/or PayPal.

[davis196]

Idea of StableCoin have no real meaning.

StableCoin it should be stable regarding what?
Stable against the dollar? It means that it will be not crypto coin – it will be USD wallet.
Stable against the gold or oil? It means that it will be gold futures, not crypto coin.

Stable – it’s economic property of the coin and not a technological feature. Bitcoin can be stable like gold with sufficient prevalence.

Who is using the term "stable coin".I don't see anyone on the forum or somewhere else to use this term.
There aren't any notable stable coin projects.The famous Tether coin is just a useless token,
Many people make the mistake to think that fiat currencies,like the US dollar,are stable.That's not true.
So a coin backed by USD can't be stable.