On stablecoins

[deisik]

I wish in near future, banks will accept crypto deposit at least bitcoin or top 10 crypto. If bitcoin accepted by banks, i think we dont need stable coin anymore and crypto become commodity or investment instrument. If this happen, i think government can regulate cryptocurrency market and investor will more confident to invest in crypto

It's not going to happen

I mean, not in the near future. And if it is going to happen in the end, fiat banks won't be relevant already. When Bitcoin takes off for real and goes mainstream, you would need banks like a fifth wheel. Just in case, you wouldn't need stablecoins then, either. We need banks because we need fiat but if Bitcoin becomes that fiat (i.e. replaces it), banks will no longer be required as Bitcoin already has a "bank" built in or, to put it differently, it is a bank in its own right

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[Snaic]

I consider stable coins not as a full-fledged cryptocurrency, but as auxiliary coins for ease of use of cryptocurrency. Stable coins can not be profitable as a regular cryptocurrency, but it is generally very useful because it creates ease of use of cryptocurrency. In practice, this is a buffer between a cryptocurrency and a common currency or between different types of cryptocurrencies and, as a rule, funds are kept in stable coins temporarily, until a certain expected circumstance occurs.

[superstarbtc]

2019 is the year of stable coins most of the stable coins are coming up in every country stable coins for government organisations to financial institutions stable coins is good exposure to crypto community

[deisik]

I consider stable coins not as a full-fledged cryptocurrency, but as auxiliary coins for ease of use of cryptocurrency. Stable coins can not be profitable as a regular cryptocurrency, but it is generally very useful because it creates ease of use of cryptocurrency. In practice, this is a buffer between a cryptocurrency and a common currency or between different types of cryptocurrencies and, as a rule, funds are kept in stable coins temporarily, until a certain expected circumstance occurs

From my perspective, they are of no particular use. Here I refer to centralized stable coins which are issued by exchanges (or via exchanges proxies), for example, Tether which has Bitfinex behind it. As many posters already said, they give a feeling of safety (safety from volatility), something which the dollar in your account would provide, but it is a false feeling as they are as risky as keeping your money in exchange account itself. If you really want to hedge against volatility, you should use other tools

Decentralized stable coins, on the other hand, is a completely different animal

[fauzan Ichsan]

I consider stable coins not as a full-fledged cryptocurrency, but as auxiliary coins for ease of use of cryptocurrency. Stable coins can not be profitable as a regular cryptocurrency, but it is generally very useful because it creates ease of use of cryptocurrency. In practice, this is a buffer between a cryptocurrency and a common currency or between different types of cryptocurrencies and, as a rule, funds are kept in stable coins temporarily, until a certain expected circumstance occurs.

different from me, that in crypto there is no stable coin, of course it makes traders not interested. because with high volatility there are many opportunities to get rich in a short time

[superstarbtc]

2019 is the year of stable coins like the way we have seen 2017 and 2018 the year of icos this year we see many stable coins from all organisations and all walks of life

[deisik]

Banks accepting bitcoin or other stuff is not "impossible". They are already working with ripple and using their blockchain to send money from one place to another already, ripple made sure of that and right now there are many banks that have contracts with Ripple for that system. Which means banks are already interested in blockchain technology, even bank of america who speaks badly about bitcoin all the time has blockchain patents.

It means the mass adoption of crypto in banks is not that far away, if you mean by this summer yeah it won't happen but I don't doubt in 10 years time we will have bitcoin as a currency in bank accounts as well. Right now, I have my local fiat in my bank account and with it I can get dollars, euroes, basically almost all fiat in the world and with that in mind I don't doubt bitcoin will be added to that as well.

Are you sure you posted your reply in the right thread?

Regardless, I don't think that banks are so much against crypto (contrary to what many people think here). If it helped boost their profits, they would without doubt use it. But here's the catch. It is not up to banks to decide whether they are going to accept crypto (e.g. into deposit accounts). Right now, we can't even have a single fucking ETF (in America, at least) as regulators are reluctant to change their views on crypto (too volatile, too much manipulation going on). So it may take a little longer until banks are in fact allowed to work with cryptocurrencies like fiat

[hxtop]

Since we have struggled by fluctuations in 2018, it is not a suprising thing to see such alternatives or promises on the market. However, you can't control or make stable enoug price of a coin only by support of a company which is not known or trusted. As we experienced in some years, even central banks can't totally control exchange rates of a fiat currency and a financial crisis happens periodically.

[eroejoe]

I think that stable coins will not be useful at the end game. Right now stable coins have great value for trading with crypto, but I do not see any other use case for them.

[mu_enrico]

I think that stable coins will not be useful at the end game. Right now stable coins have great value for trading with crypto, but I do not see any other use case for them.

Wut? How about to use it for international trade? How about for minimizing volatility?
Assumed that the 3rd party vault really store the underlying asset and it's being audited continuously, this tech is quite useful.

[Ranly123]

i think top coin from 1 to 50 can be say stable coin, because price movement are slowly and also follow bitcoin price.
not like other coin,while btc is dumping they pump, but you can make great profit it you have a great timing to buy.

I don't think it's considered stablecoins. Some of the top 50 cryptocurrencies are not backed by Fiat currency or other tangibles. Maybe we can say Bitcoin and ethereum are stablecoins so as ripple since they can directly traded to Fiat to avoid the price volatility of crypto.

[eroejoe]

I think that stable coins will not be useful at the end game. Right now stable coins have great value for trading with crypto, but I do not see any other use case for them.

Wut? How about to use it for international trade? How about for minimizing volatility?
Assumed that the 3rd party vault really store the underlying asset and it's being audited continuously, this tech is quite useful.

Stable coin takes everything bad from fiat, and takes everything bad from crypto... With too many points of failure. For fiat to fiat payments cryptos will never be better choice.

[deisik]

I think that stable coins will not be useful at the end game. Right now stable coins have great value for trading with crypto, but I do not see any other use case for them.

Wut? How about to use it for international trade? How about for minimizing volatility?
Assumed that the 3rd party vault really store the underlying asset and it's being audited continuously, this tech is quite useful.

Stable coin takes everything bad from fiat, and takes everything bad from crypto... With too many points of failure. For fiat to fiat payments cryptos will never be better choice

Yeah, but there are also decentralized stable coins

Which, as I wrote earlier, are a completely different animal. Though I should admit that somehow I expected a little more from them initially. More specifically, I looked into Dai (being first mentioned in this post) as well as BitShares. At first I thought they were a good thing (expecting it to be something like you have at Bitfinex with only 25% of collateral required). But with these coins (or rather tokens), you have to provide over 150% of collateral in the underlying which makes the whole idea stillborn (well, at least to me)

[Spaffin]

I do not think that stable coins should be compared with the usual cryptocurrency. Stable coins are not full-fledged cryptocurrency and can not bring us profit. However, stable coins are very useful, since they significantly increase convenience when working with cryptocurrency. It is better not to use them for long-term storage of their funds. Stable coins should be considered as a kind of buffer zone between a cryptocurrency and a common currency.

[Adriano2010]

I also don't think stable coins can be compared to crypto coins which are volatile because this is the kind of crypto, but indeed the stable coins have their role on market and who want can keep money on stable coins, but this happen most on traders.

[Lanatsa]

I do not think that stable coins should be compared with the usual cryptocurrency. Stable coins are not full-fledged cryptocurrency and can not bring us profit. However, stable coins are very useful, since they significantly increase convenience when working with cryptocurrency. It is better not to use them for long-term storage of their funds. Stable coins should be considered as a kind of buffer zone between a cryptocurrency and a common currency.

They are just useful when there is some market problems like "dumping" where you can secure out your profits or your BTC & Alts to stable coins to avoid further loss and the
convert it back when the market goes to normal again.

I also don't think stable coins can be compared to crypto coins which are volatile because this is the kind of crypto, but indeed the stable coins have their role on market and who want can keep money on stable coins, but this happen most on traders.

When it comes to volatility then there no question about that and thats why they are called "stable coins" because price has no volatility at all. 

[Artemis3]

If you don't know what stablecoins are, read this Wiki article

With that read, there is an ongoing dispute over the advantages of these coins before Bitcoin and other cryptocurrencies. Many suggest that they are not actually backed up by real currencies or other assets as the companies behind them vigorously claim, that they are centralized beyond any hope, and without proper audits they can be printed out of thin air just like fiat money, which would culminate in their hyperinflation, devaluation and failure

For simplicity's sake, let's assume that these accusations are unfounded. So do these coins have any advantages compared to Bitcoin under given assumptions? In these conditions stablecoins essentially become fiat that they are representing, i.e. the US dollar, Euro, or whatever. So the whole thing is not so much about some stablecoin versus Bitcoin but rather a good old question of a fiat currency versus a cryptocurrency

And I guess you already know the answer to that question

Well i can tell you right now another disadvantage they have is that they are tokens using someone else's blockchain. So even if you get a wallet, you still need two different coins in it, the stablecoin itself and the coin of the blockchain it operates with to pay tx fees.

With Tether its more confusing, because there are 3 variations that work on 3 different blockchains: Bitcoin, Ethereum and Tron. The others are all ERC-20 so just Ethereum (gas). You need both coins in your wallet to move a transaction, that is not user friendly.

For the time being they appear to be intended to be used inside an exchange as hedge in trading or such, but not directly like you would use any other crypto...

[deisik]

When it comes to volatility then there no question about that and thats why they are called "stable coins" because price has no volatility at all. 

Technically, it is not quite so

If these coins are traded (since otherwise how you would buy them), the law of supply and demand is applicable to them as well. So their value oscillates around parity but there can certainly be sudden volatility just like with any other coin out there. Stable coins which use market means to provide stable value are more susceptible to this kind of volatility and people use it to squeeze profits from such price action

[incomefromcoins]

Most of the stable coins are being developed by big corporate companies like JP Morgan and Bank of America and even government organizations are coming up with stablecoins stable coins are good for the cryptocurrency which brings of dollars in turnover

[jrrsparkles]

Most of the stable coins are being developed by big corporate companies like JP Morgan and Bank of America and even government organizations are coming up with stablecoins stable coins are good for the cryptocurrency which brings of dollars in turnover

Which is good and profitable for the one who created it but the investors will not get benefits from it and literally the value of stable coin keep losing even if the prices is approximately one dollar because the value of dollar keep decreasing due to inflation.Use stable coin if you don't want to cashout your profits on cryptos which can be used to reinvest without much expenses.