Are Stablecoins A Necessary Evil?

[catsmile]

"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

Personally, I find this really a lack of stable coins. They need to be upgraded and overcome, I think. However, they help people feel easier when joining crypto world. That's why it is both necessary and dangerous.

[jacafbiz]

For me, i think people fail to give these stable coins the credits they deserve, they have done well for the space, look at BTC for example people lost millions investing into it but no one in their right sense criticize it for being rubbish or nothing, but something that give you guarantee on your money is painted black, do you know how much is charge to get in and out of crypto using credit cards

[jigawagawa]

As far as cryptocurrencies are concerned, I think they are needed, because most businesses lthat have their platforms platforms integrated to blockchain love to convert their proceeds to stable coins in order to avoid the aftermath of the high level of volatility experienced in the space

[prof7bit]

For me, i think people fail to give these stable coins the credits they deserve, they have done well for the space, look at BTC for example people lost millions investing into it but no one in their right sense criticize it for being rubbish or nothing, but something that give you guarantee on your money is painted black, do you know how much is charge to get in and out of crypto using credit cards

I am not a supporter of moving capital into stable coins. For me, Bitcoin itself serves as a very stable and liquid coin! I believe only in Bitcoin!

[e@symode]

For traders, this is the only way not to use cryptocurrencies. You understand what exactly so today people try to use stable tokens. Who knows how stable they are? Probably no one will ever know.

[BlueStackz]

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.

I think the existence of stable coins in the market has been of great influence as regards creating awareness and making the crypto space easier for these business men to operate. If we look at the cryptocurrency world and its volatility, we will realize that this period only favors more of investors and not institutions or an individual that wishes to use the crypto strictly for utility token.

As these businessmen gets acquainted to using stables coins for savings and making necessary payments without the fear of volatile or the value of the fund they intend using for some particular payment settlements plunges overnight, it will become easier for all of them to migrate to BTC easily in near future when it becomes stable too.

[Ezenwanyi1]

Stablecoin backed by Fiat are very necessary .
It's estimated that the tether stable coin has a daily volume of billions.
This is a testament to the fact that there's a demand for the development of more stable coins here.
Stable coins would accelerate mainstream Adoption of cryptocurrency.

[cchub]

"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

This is an interesting article. I believe crypto is here to stay! Crypto with lower volatility is also needed. We need stablecoins for that, to make some apps (dapps) function better and stable.

[Snaic]

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.

I wonder how much criticism and dissatisfaction with stable coins. And at that time, when it is clearly visible that they greatly facilitate the work with cryptocurrency. Nobody forces anyone to use them. I am very pleased with the appearance of stable coins. This is really a new stage in the development of cryptocurrency. Cryptocurrency continues to evolve. Perhaps, in the future, something more perfect will appear, but for now we have stable coins in their form.

[TheHas]

Well one thing about stablecoins, you might not make any money - but you'll never lose any money either

Unless its USDT, then maybe you will when the house of cards crumbles...

[South Park]

Well one thing about stablecoins, you might not make any money - but you'll never lose any money either

Unless its USDT, then maybe you will when the house of cards crumbles...

And this is the biggest issue with coins backed by something, they are centralized which means that is very easy for the ones emitting the coin to defraud the trust of their investors in a way similar to banks and governments, if the recent news are correct then each tether is only backed by 74 cents and while many probably do not mind this investors were assured they were investing in an asset completely backed by US dollars, so it will not surprise me if USDT disappears during the next years as people lose trust in the coin.

[3core]

Why hold stable coin, when I can keep my money in fiat currency, stable coins are not cryptocurrency. Stablecoins are regulated and centralized which is not a feature of any cryptocurrency.

[Danslip]

For liquidating the winning trading position we need to re-think about the our views on the stable cryptocurrencies. Altcoins have higher volatility and these type of stable coins can solve these problems.

[jak3]

I do not consider them to be evil until now. as the principal is almost the same as a coin on water. support if you put 1coin on the boat and then sail the boat into the water. it will float and even jump on the water but as the coins weight increases, the boat will become more stable and at a point when the coin becomes too much valued the boat is even gonna sink into the water and not gonna move anymore.

[levvv]

A stable coin is something that we need to measure the cryptocurrency with fiat value.
But too much stable coins is not good, because some of them maybe turned to be a scam coin.
There is no profit from holding stable coin, so it is not necessary to be created more of them.

[Jeborn]

Indeed stables coin are very much needed neccesary evil. If not for all everything stable coins offer but for the fact that stable coins is a safe haven for trader during continuous down trends. It more than neccesary to have them around I ll say it's compulsory for our safety

[Argoo]

Why hold stable coin, when I can keep my money in fiat currency, stable coins are not cryptocurrency. Stablecoins are regulated and centralized which is not a feature of any cryptocurrency.

Stable coins make it easier to work with cryptocurrency. They are not really intended for a long storage period. It is convenient to use them when you need to quickly withdraw funds from a particular  cryptocurrency, but the time has not yet come to invest these funds in other coins or to withdraw them in fiat.
At the same time, if someone does not like to use them, it is their right.

[Ayobami99]

My opinion is that they are actually good especially to attract more adopters who might be afraid of loosing money due to an unstable market when they do business transactions. Imagine using btc,  the one who accepts it will rather loose or gain when the market rises of falls. Apart from the accusations around USDT I'm sure stable coins are very cool

[Wolfwar]

My opinion is that they are actually good especially to attract more adopters who might be afraid of loosing money due to an unstable market when they do business transactions. Imagine using btc,  the one who accepts it will rather loose or gain when the market rises of falls. Apart from the accusations around USDT I'm sure stable coins are very cool

The fact is that I can not understand why the author considers stable coins as evil.  In any case, These coins enable many users of cryptocurrency to minimize their losses.  I have repeatedly used USDT when another cryptocurrency market collapsed and I was able to stall my capital level at a certain place.

[CryptoGosu]

Currently, stablecoins can create many problems in the market. This may have strong negative consequences. But in general, I think that the stablecoins are useful for the development of the market.