Are Stablecoins A Necessary Evil?

[gentlemand]

I think one of the reasons why people use stablecoins instead of exchanging to fiat on exchanges is that it's either:

• They don't trust their local currency
• They don't trust the exchange

Kraken only rejects residents of these countries - Afghanistan, Cuba, Iran, Iraq, Japan, North Korea, Tajikistan.

They have real Euros and a perfect security record so far. I have no idea why anyone would choose some fuckhole with potentially non existent money over that. I'd rather take the hit on exchanging whatever alt to something I can sell into EUR on Kraken rather than stay put in USDT for any period of time.

Maybe I'd do it for a few hours but if I was sitting out an apocalypse no way would I take the risk.

[Irvinn]

I do not consider stable coins to be evil in any form. Stable coins are very necessary for us, because they serve the activity of a real cryptocurrency. In fact, stable coins are not full-fledged cryptocurrency, they have only a cryptocurrency shell, but in fact they are a digital copy of the currency of a particular state that they represent.

[mk4]

They have real Euros and a perfect security record so far. I have no idea why anyone would choose some fuckhole with potentially non existent money over that. I'd rather take the hit on exchanging whatever alt to something I can sell into EUR on Kraken rather than stay put in USDT for any period of time.

I don't know either. But I assume the reason why they trust USDT so much is that it ran fine for years, with a bit of price hiccups here and there. Not to mention that some people might actually think they're holding actual USD. Don't underestimate ignorance I guess. 🤷‍♂️

[antisocial77]

i never understand those stablecoins.how come their price are not equal to usd?and another thing is they cause to inflation.i dont see any good effect to market.

[South Park]

"Fiat-backed stablecoins are therefore rarely actual cryptocurrencies, which causes them to inherit their main characteristics and shortcomings from the centralised banking system. Ultimately, they function in the same manner as fiat, backed by what amounts to an IOU."

Danial Daychopan wrote a short article linked below that has got me thinking. Are stablecoins bad for the cryptocurrency ecosystem because they are essentially fiat in digital form, or are they beneficial as they provide stability in an extremely volatile market? Curious to hear your thoughts, give it a read and let me know your angle on it.

https://medium.com/@DDhopn/stablecoins-3b93b4f1ddc5

Whether we like them or not it was inevitable that stable coins will appear, if you are a trader and you want to get out of the market because you think it is going to go down your only option before was to sell your coins for fiat and this was a huge problem for those that wanted to retain their privacy because now they will need to go through KYC, but now stable coins offer you the possibility to get out of the market without getting out of the market.

[EncryptKnomes]

I do not consider stable coins to be evil in any form. Stable coins are very necessary for us, because they serve the activity of a real cryptocurrency. In fact, stable coins are not full-fledged cryptocurrency, they have only a cryptocurrency shell, but in fact they are a digital copy of the currency of a particular state that they represent.

Agreed, an important difference to note. However, the article is saying that means they are inheriting many of the negative attributes of regular fiat currency which could be bad for the crypto ecosystem as a whole.

[cribusen]

They are not evil, we really need some stable coins on this market. It is a pretty great thing if you want to stay out of the market, but you need you funds to be ready to invest directly from an exchange. The only thing I do not get, do we really need 10 stable coins?

[EncryptKnomes]

They are not evil, we really need some stable coins on this market. It is a pretty great thing if you want to stay out of the market, but you need you funds to be ready to invest directly from an exchange. The only thing I do not get, do we really need 10 stable coins?

I agree stablecoins are necessary, but are they actually backed by the dollar and stable?

[jan.nicolas]

I think that this is so. And they really pose a threat, because stable Coins in general are not related to cryptocurrencies, which are limited. This needs to be understood and that is exactly what separates cryptocurrencies from fiat money.

[sockpuppet1911]

Evil is a strong, subjective word. They are just an assets trading on the same exchanges as cryptos. They are not cryptocurrencies but they obviously have their use cases, otherwise they would not be needed.

[HodlChampion]

Very interesting article, and I completely agree that they are necessary for the growth of the cryptocurrency ecosystem, despite potentially being the crypto equivalent of the federal reserve bank.

[elitemobb]

I do not see anything wrong with stable coins as the market attracts a lot of investment due to them. This type of tokens is created so that you can fix your capital and not be afraid for it.

[nikola22]

stablecoins are not an evil but a tool for crypto/fiat transfers and there is no danger from them for traditional cryptocurrencies.

[Adriano2010]

I think people still need stablecoins to hold their money on before and buy with after crypto coins, because is better to hold money on stable, not 100% safe, maybe in future something will happen and stablecoins will die, who know.

[boazsalosa]

They have real Euros and a perfect security record so far. I have no idea why anyone would choose some fuckhole with potentially non existent money over that. I'd rather take the hit on exchanging whatever alt to something I can sell into EUR on Kraken rather than stay put in USDT for any period of time.

I don't know either. But I assume the reason why they trust USDT so much is that it ran fine for years, with a bit of price hiccups here and there. Not to mention that some people might actually think they're holding actual USD. Don't underestimate ignorance I guess. 🤷‍♂️

Holding USDT is the same as holding real money so they will be more trusting it is compared to altcoins who have good potential, so they don't underestimate anything.

[Febo]

"Fiat-backed stablecoins are therefore rarely actual cryptocurrencies, which causes them to inherit their main characteristics and shortcomings from the centralised banking system. Ultimately, they function in the same manner as fiat, backed by what amounts to an IOU."

Danial Daychopan wrote a short article linked below that has got me thinking. Are stablecoins bad for the cryptocurrency ecosystem because they are essentially fiat in digital form, or are they beneficial as they provide stability in an extremely volatile market? Curious to hear your thoughts, give it a read and let me know your angle on it.

https://medium.com/@DDhopn/stablecoins-3b93b4f1ddc5

Any crypto asset backed with a physical item is tricky thing. No one grantee o you that that item really exist. or that you will really get it when you will want to redeem it.

[pushups44]

What I don't understand about the cryptocurrency space is why people have an either/or mindset. You cannot have decentralization everywhere - if you are an intruder I will neutralize you on my property - acting as a centralizing agent within my space. I will expect central authorities to be in charge of things around my community or county. I expect central authorities to be involved in the computer made for me - at an organizational level - to type on now. NOT EVERYTHING HAS TO BE DECENTRALIZED.

Similarly, not all currencies have to be decentralized. We can have decentralized and centralized cryptos working together.

[pushups44]

To use an analogy, imagine the wheel. The wheel was important for civilization and advantages in war. Now imagine crowds awestruck by the wheel insisting everything has to be round. "Why are you using arrows? They are not shaped like the wheel!" "Why are you using bricks for the house? They are not shaped like the wheel!"

Well, the wheel has a specific purpose. The wheel is not for everything.

[bitcoin-shark]

unfortunately the stablecoin are obligatory with this market too variable, i use them to get out from the altcoin at the end of the evening, at the end of the day trading...

[zhekinsp]

It is completely against the crypto currencies but it is good thing for traders,so these coins can never be used for holding long term.