On stablecoins

[haufranco]

Wiki. Who told it’s any reliable?

[1715663544]

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[1715663544]

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[1715663544]

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[uray]

Wiki. Who told it’s any reliable?

No one is asking you take this as a reliable data, but the content about stable coins being described can be taken as a source of study and there is nothing wrong in it unless they claim that those data are reliable and verified.

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

The depute was proved when Tether who also claimed to have  backed every penny to dollar later had to retract their claims and recently they have to say that not everything is backed by dollar but equivalent, you never know what that equivalent is, you really cannot trust those centralized stable coins and i am sure we will see major regulations preventing their use in the future.

[deisik]

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

The depute was proved when Tether who also claimed to have  backed every penny to dollar later had to retract their claims and recently they have to say that not everything is backed by dollar but equivalent, you never know what that equivalent is, you really cannot trust those centralized stable coins and i am sure we will see major regulations preventing their use in the future

That goes without saying

But I'm not sure whether there'll be such regulations and, more importantly, whether we need these regulations to prohibit entities like Bitfinex from creating them. Well, Bitfinex may in fact be the one which should be stopped from creating more Tethers but they are not the only kid on block evidently as other exchanges are also now creating such coins. But what about decentralized stable coins then? They seem to be a completely different animal as their value is balanced via market means and not (presumably) pegged to a base currency via someone saying so

[bonker]

For the future everything is important so investing on every table kinds is also helpful for the future right now that is developing with lots of stability that's why the investment process and thoughts will came for the people to invest in this currency also.

[imstillthebest]

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 ...

Stable coins has some benefits to a trader/investor and that is to secure or to prevent the value of thier cryptos to go down  . This why stable coins are called stable because they are like dollar  . It saves you alot of fees and hassel from cashing your cryptos from time to time if you were a kind of person that is conscious about the volatility of the market  .

I dont believe that stablecoins can drop much compare to a regular crypto . They can decrease but not too much , same as what you experience on a regular dollar bill  .

[Snaic]

No need to look for the disadvantages or advantages of stable coins compared to Bitcoin or other coins. Stable coins are actually digital copies of ordinary currency and are intended only to assist in the use of cryptocurrency. This is not a real cryptocurrency, since it cannot be used for profit. It simply makes it easy to use cryptocurrency and therefore very useful.
  I can not understand why some are so negative about stable coins. If someone doesn’t like them, just don’t use them, but don’t stop them from doing it to others who see them as good.

[Netnox]

Stablecoins have no advantages over fiat and no advantages over crypto.They are used only as a ponzi scheme and scam projects.They have no other purpose than that.End of discussion.
By the way,Wikipedia can't be used as a trusted source of information.

I wouldn't generalize all the stablecoins. There are a few reliable ones out there, which are backed up by assets in fiat cash (either hard cash, or cash equivalents). But as the ongoing Tether-Bitfinex drama has shown, it is wrong to have an assumption that stablecoins such as USDT are 100% reliable. Look at what happened to USDT. As per the information given to the authorities, Tether is only 74% backed up with real assets. This is despite the fact that they had always claimed that every USDT token is backed up by US Dollar, 1 to 1.

[Xampeuu]

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 ...

Stable coins has some benefits to a trader/investor and that is to secure or to prevent the value of thier cryptos to go down  . This why stable coins are called stable because they are like dollar  . It saves you alot of fees and hassel from cashing your cryptos from time to time if you were a kind of person that is conscious about the volatility of the market  .

I dont believe that stablecoins can drop much compare to a regular crypto . They can decrease but not too much , same as what you experience on a regular dollar bill  .

for now maybe we won't find a stable coin. different if cryptocurrency is recognized by most countries in the world, it is certainly volatile unlike today. and it could be acting like a dollar now, which one is the current currency

[darklus123]

the biggest problem that i see with stablecoins is that they are centralized and not like fiat centralization, but worse since they are issued by a company that can go under or run away. with fiat at least the whole country has to go under for their fiat to become worthless but the stablecoin the company which has a high risk of going under can do that and the coin can become worthless in an instant!

In most cases most of the stablecoins are made trough bank corporation. Following the banking principle which is mostly against crypto which made it really centralized. You are also right this type of coin can be easily worthless if the management fails to do its job and by that being said crypto still has a more unique approach when it comes to currency and again I love to categorize such coins as a sh*tcoin

[deisik]

No need to look for the disadvantages or advantages of stable coins compared to Bitcoin or other coins. Stable coins are actually digital copies of ordinary currency and are intended only to assist in the use of cryptocurrency. This is not a real cryptocurrency, since it cannot be used for profit. It simply makes it easy to use cryptocurrency and therefore very useful

You are talking about centralized stable coins

But there are other stable coins of a decentralized nature which use smart contracts to keep their value close to parity (say, 1 US dollar) and thus can be considered real cryptocurrencies. And since the parity is obtained via market means versus authoritative fixing (i.e. unlike what Tether and its likes do or are supposed to do), these can in fact be used for earning profits (strictly speaking even centralized stable coins can be used for that purpose too). Obviously, the market mechanism which is used to support parity has some delay before it kicks in and moves the price toward the parity, sometimes there are significant shifts from it which allows for profit earning opportunities to arise

[Nuxxorcoin]

I think its block the rise of cryptocurrencies. People are starting to flee to fixed coins because they see price reductions. The fact that they exist is a big question mark for me.

[deisik]

I think its block the rise of cryptocurrencies. People are starting to flee to fixed coins because they see price reductions. The fact that they exist is a big question mark for me

This is a very shaky reason (and proposal)

If we continue your line of reasoning (starting with the assumption that folks flee to stable coins in order to avoid losses), then we should just ban cashing out as this is what stable coins are about. Essentially, they are a proxy to fiat (as explained in the OP) and refusing people to use them is the same as refusing people to trade as they see fit (i.e. buy and sell what they want and when they want it). If we hypothetically implement what you suggest, that will lead to the death of cryptocurrencies rather than their rise

[Vishnu.Reang]

I don't really understand the purpose in having all these stable coins. If you don't like the volatility of the cryptocurrencies such as Bitcoin and Ethereum, then just convert your coins to fiat currency. Why bother converting them to stablecoins such as USDT or TUSD? I don't trust these stablecoins, due to their association with fiat. They can go down anytime.

[KlepZ]

Stablecoins are the ones whose value remains stable, hence the name(which is one of the benefits of a stable coin), and that is pegged to the value of an underlying asset.
The best stable coins to look forward in 2019 is
Tether (USDT)
TrueUSD (TUSD)
MakerDAO (DAI)

[shinharu10282016]

For the future everything is important so investing on every table kinds is also helpful for the future right now that is developing with lots of stability that's why the investment process and thoughts will came for the people to invest in this currency also.

Investing is one thing but you have to add more just so you  know. Your money won't work for you because if you want that you should've been a millionaire by now.

[Blacknavy]

Cryptocurrencies and cryptocurrencies exchanges are not controlled by states in any way, I don't think many of the companies that must hold 1 USD for each 1 stable coin under normal conditions have enough dollars.

[nur rochid]

For the future everything is important so investing on every table kinds is also helpful for the future right now that is developing with lots of stability that's why the investment process and thoughts will came for the people to invest in this currency also.

Investing is one thing but you have to add more just so you  know. Your money won't work for you because if you want that you should've been a millionaire by now.

for stable coins, of course there are those who expect it. one of them is an opportunity to function as a currency to be open. but it needs a role from the government, because to achieve it I think it requires recognition from many countries

[wuvdoll]

I think the main reason why they were started was the ease of trading, not for profiting. The main idea was putting dollars vs bitcoin was difficult some people had to withdraw their currencies from the exchanges like binance where fiat was not allowed and put it on places like coinbase and trade it to fiat and do the reverse whenever they want it back on binance.

However, right now there is almost a trillion stable tokens created, everyone and their dog starts a new stable coin, which caused some issues of course but we can't deny that it made it easier to trade fiat vs bitcoin on wherever you want, that is why it was loved. I believe tether people are scammers, I believe there are plenty of stable coin scammers but in the end success only happens after you endure the pain in this business.

[Vishnu.Reang]

Stablecoins are the ones whose value remains stable, hence the name(which is one of the benefits of a stable coin), and that is pegged to the value of an underlying asset.
The best stable coins to look forward in 2019 is
Tether (USDT)
TrueUSD (TUSD)
MakerDAO (DAI)

Out of the three you had listed, TUSD is clearly my favorite. They had recently conducted an external audit, which showed that the coin is 100% backed up with cash or cash equivalents. And very soon, we will be able to check the TUSD reserves in real time.

On the other hand, USDT is only 74% backed up with cash (although the promoters are claiming that this is a temporary issue and very soon they will be having full backup. DAI is also facing issues in securing 100% backup. They are even considering to increase the stability fee, so that the deficit will be covered.

[shinharu10282016]

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 ...

Stable coins has some benefits to a trader/investor and that is to secure or to prevent the value of thier cryptos to go down  . This why stable coins are called stable because they are like dollar  . It saves you alot of fees and hassel from cashing your cryptos from time to time if you were a kind of person that is conscious about the volatility of the market  .

I dont believe that stablecoins can drop much compare to a regular crypto . They can decrease but not too much , same as what you experience on a regular dollar bill  .

The stablecoins also has the advantage over projects since most of them are those that started even before the boom in 2017 and that shows how people are still into them despite the markets' ups and downs.

We should probably say these stablecoins will be able to stay no matter what happens to the market since most of them has their own use.