Are Stablecoins A Necessary Evil?

[TheHas]

I don't see why they are evil, but they are necessary.

They can help with shorting crypto, or purchasing to account for volatility.

Eventually, you might not even want to have a stablecoins pegged to USD or another fiat. If you prefer, you could have a stablecoin pegged to the price of gold or silver if you don't like the idea of crypto still relying on fiat as the benchmark for value or stability.

I actually think a stablecoin pegged to gold or another auditable product like that could be really useful.

[bitcoinikdotcom]

Stable coins like Tether (USDT) are necessary for the crypto market. Stable coins provide easy and negligible fee (as compared to fiat) to transfer between different exchange and wallets. Good stable coins are hard to manipulate and remain equivalent to 1 USD maximum times. Stable coins play an important role in the upcoming bull run and mass adoption.

[Wayan_Pedjeng]

Although I don't like the concept of stablecoins, I don't want to demonize them. Since BTC and the other cryptos are highly volatile, some of the users might be tempted to convert at least a part of their holdings to Stablecoins such as USDT. And this situation will remain the same as long as the crypto market remains volatile.

[TheClownSong]

Although I don't like the concept of stablecoins, I don't want to demonize them. Since BTC and the other cryptos are highly volatile, some of the users might be tempted to convert at least a part of their holdings to Stablecoins such as USDT. And this situation will remain the same as long as the crypto market remains volatile.

I think stablecoin needed to measure the value of bitcoin. Beside that, daily traders must be need stablecoin to convert their asset in fiat when bear market. I dont think crypto will replace US Dollar or fiat money because we are living with government and every people trust on government money

[harrypotpot]

"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

I think its ironic to say, "necessary-evil" let us focus on saying, stable coins are savior in my opinion. Not considering the fact that these stable coins are better in business and investments. I am just using it to save my profit on a downfall of my altcoins. As simple as that.

[OLDARH]

In order to successfully track and predict the rates of many altcoins, a binding to any coordinate system is necessary.
Bitcoin is often the starting point.
But the thing is that it often has very high volatility and that is why stable coins are necessary in order to track the fluctuations in the rate of the Bitcoin itself, without resorting to direct binding of cryptocurrency to FIAT.

[South Park]

I don't see why they are evil, but they are necessary.

They can help with shorting crypto, or purchasing to account for volatility.

Eventually, you might not even want to have a stablecoins pegged to USD or another fiat. If you prefer, you could have a stablecoin pegged to the price of gold or silver if you don't like the idea of crypto still relying on fiat as the benchmark for value or stability.

I actually think a stablecoin pegged to gold or another auditable product like that could be really useful.

That is a nice idea and something I would like to see but there have been many attempts to try this in the past and all of those attempts ended in a scam so it is understandable why many people do not really trust in the possibility of that happening in the future, however stable coins backed by fiat are good enough in my opinion even if there have been some controversies about whether or not those coins are actually backed by the amount of dollars their developers claim.

[DeadCoin]

If you deeply look into, stable coins are the ones investors look at always when investing on other coin with more fluctuations. Its another best choice to increase the profit . When the value goes up and you sell the altcoin into USDT, and the value goes down. Then with the USDT earned, you can very well buy more coins with what you have. 

[cryptowolfsu]

They are needed for trading and  for mass adoption of crypto as merchants do not want to deal with
volatile coins. Stable coins are needed, but what I do not like that most of them is centralized.
Would like to see more decentralized solutions like DAI

[Gary Levanevskii]

Every day, more and more stablecoins are being created. I think many of them cannot be trusted. It will be very bad if it adversely affects the market.

[lobat999]

I still regard stable coins as a joke to cryptocurrency world. Just recently a scandal broke out involving Tether and Bitfinex which could be the reason for today's price of BTC in a sudden plunge. Here is the news about it. - https://www.wsj.com/articles/bitfinex-used-tether-reserves-to-mask-missing-850-million-probe-finds-11556227031 and I think it could send crypto prices downward for a couple of days until it will become stabilized or resolved.

[glendall]

actually the existence of a coin stable really helps a trader or a holder to secure his assets.
but what I don't like, a lot of stable coins have appeared, this should be a problem,
I think 1 to 2 stable coins is enough,
but this is just my opinion.

[julius caesar]

If they are giving protection against volatility, They are helping to increase liquidity then I do not think terming them "evil" is correct.
I do not think our dependence on them is going to reduce because market will not like to reduce the liquidity.

I think that is because, they are promoting large business and to invite big businessman here on the cryptocurrency space? Because if we are going to look at the situation, when investors think about a stable market price, they might buy and accumulate huge amount of it. Disregarding other crypto's leaving behind.

[GreatArkansas]

For what I observed, stable coins are very helpful for mass adoption for cryptocurrency. Since, some new people will try to use those stable coins to buy crypto, such as Bitcoin. And it is the best on stable coins are backed up with currency like USD, AFAIK, like USDT is backed up on USD. Since last year, a lot of stable coins are popping out.

[corrado25]

I will not be precise to say that stablecoins are evil but if they are really not backed up by dollars then that's very bad. personally, I do not hold stablecoins because any news is negative about that stablecoin is not backed up by a real dollar leading to panic and falling prices. although I like that for example, usdt can be translated between exchanges

[veraro]

I believe stablecoins is necessary. It is allow traders and people who invest in crypto save their funds. It is good for market actually. But i am not sure is it necessary to exist that much stablecoins as now. May be after selection in the end there leave only few the best.

[lobat999]

For what I observed, stable coins are very helpful for mass adoption for cryptocurrency. Since, some new people will try to use those stable coins to buy crypto, such as Bitcoin. And it is the best on stable coins are backed up with currency like USD, AFAIK, like USDT is backed up on USD. Since last year, a lot of stable coins are popping out.

Ideally, stablecoins should serve on that purpose and I agree with what you've mentioned but its a bit ironic now that a well known stablecoin such as Tether turns out to be unstable at all and all its outstanding purpose seems to have been compromised and was easily manipulated unbeknownst to the crypto community. I may not be surprised at all if there will be another issue that will surface involving another stablecoin soon though I hope I'm wrong with that.

[Bitfling]

For what I observed, stable coins are very helpful for mass adoption for cryptocurrency. Since, some new people will try to use those stable coins to buy crypto, such as Bitcoin. And it is the best on stable coins are backed up with currency like USD, AFAIK, like USDT is backed up on USD. Since last year, a lot of stable coins are popping out.

Ideally, stablecoins should serve on that purpose and I agree with what you've mentioned but its a bit ironic now that a well known stablecoin such as Tether turns out to be unstable at all and all its outstanding purpose seems to have been compromised and was easily manipulated unbeknownst to the crypto community. I may not be surprised at all if there will be another issue that will surface involving another stablecoin soon though I hope I'm wrong with that.

Stablecoin should be used for trading purpose. But if stablecoin can used for withdrawal to the banks, i think its getting more better. Tether price unstable because investor dont trust on the audit and i think tether should be transparant to keep investor trust.

[jrrsparkles]

Literally they were just useless since we already have fiat money in the digital for so having virtual centralized currency is also just same as those but it is more worse to hold stable coins which is created by someone rather than banks or you government.

[South Park]

Literally they were just useless since we already have fiat money in the digital for so having virtual centralized currency is also just same as those but it is more worse to hold stable coins which is created by someone rather than banks or you government.

If you do not like stable coins that is fine since no one is going to force you to use them but they are far away from being useless, their main use is to allow the users of cryptocurrencies to get a form of fiat that is easy to convert back and forth without incurring huge fees or having to give explanations to your bank about where you got your money, since there have been many instances in the past in which as soon as a bank found out of your operations with cryptocurrencies they will cancel your account.