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shinharu10282016
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May 22, 2019, 06:08:45 PM
 #81

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.

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May 22, 2019, 08:15:57 PM
Last edit: May 22, 2019, 08:47:16 PM by deisik
 #82

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?

The answer is easy

If you convert your cryptocurrencies to fiat (like dollars or whatever), you may have to pay hefty fees trying to withdraw the fiat proceeds (and wait for days until you receive the funds). But with centralized stable coins, say tethers, you can completely bypass the fiat system (read, banks and all that pain in the ass that comes with them) and move your tethers either to your Tether account (or how it is called) or to another exchange where they are accepted. Essentially, these coins are working like fiat while without making use or having to use the banking system (under whatever name)

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May 23, 2019, 02:51:09 PM
 #83

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?

The answer is easy

If you convert your cryptocurrencies to fiat (like dollars or whatever), you may have to pay hefty fees trying to withdraw the fiat proceeds (and wait for days until you receive the funds). But with centralized stable coins, say tethers, you can completely bypass the fiat system (read, banks and all that pain in the ass that comes with them) and move your tethers either to your Tether account (or how it is called) or to another exchange where they are accepted. Essentially, these coins are working like fiat while without making use or having to use the banking system (under whatever name)
Though both the currencies are implementing the concept of Stablecoin, yet they have so many similarities and differences between them.
Similarities are: Both the coins are providing security to the investors by protecting them from price crash due to high volatility as per the market conditions.
Both the coins are backed by US dollars and each is providing 1:1 conversion as each coin is redeemed for each US dollar. TUSD is not as popular as USDT due to the late release in the crypto world and hence is unable to gain that much popularity.
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May 23, 2019, 04:38:15 PM
 #84

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?

The answer is easy

If you convert your cryptocurrencies to fiat (like dollars or whatever), you may have to pay hefty fees trying to withdraw the fiat proceeds (and wait for days until you receive the funds). But with centralized stable coins, say tethers, you can completely bypass the fiat system (read, banks and all that pain in the ass that comes with them) and move your tethers either to your Tether account (or how it is called) or to another exchange where they are accepted. Essentially, these coins are working like fiat while without making use or having to use the banking system (under whatever name)

Its only a token, you can use a wallet, say ETH for its erc-20 variant, put some eth in it (gas) and store your tethers. Then send them the same way you do with any other coin. It is a little more complicated than bitcoin due to this use somebody else's blockchain.

Fiat vs stable main reason they were made is so that exchanges don't have to follow the "rules" which are far more strict for actual fiat controlled in the country the operate within. An exchange can add a stable coin immediately, while for actual fiat they have to follow a long list of rules and regulations.

Stablecoins seem to do well within an exchange, for hedging trades etc, but poorly for common transactions due to this added complexity. And then there is the whole credibility issue, audits, and what not. A stable coin is technically a token whose value is pegged to some other coin. So if the pegged coin inflates 2%, they have to as well.

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May 25, 2019, 06:30:39 AM
 #85

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
I don't even know what they are made of or how everything works about stable coins, the only thing I know is that you can use the wage your money, just pull it out from Bitcoin and invest in any of those stable coins and your money will stay there for you without you losing or gaining anything as well.

But I don't have interest in stable coins, and I don't buy them, cause I don't really see any need for it. I just invest in Bitcoin and other cryptocurrencies that fluctuates in price and whenever I want to pull out, I just do so by shifting to dollars quickly.
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May 25, 2019, 06:08:47 PM
 #86

But I don't have interest in stable coins, and I don't buy them, cause I don't really see any need for it. I just invest in Bitcoin and other cryptocurrencies that fluctuates in price and whenever I want to pull out, I just do so by shifting to dollars quickly

That's what you come to on proper consideration

That these so-called stable coins are just a crappy substitute for fiat, with fiat being a better option if you want to pull out. Another option is using shorts as a hedge (just in case, this is my preferred method of doing things in this department). But this may be not what people think or consider en masse. Besides, you can send these coins (e.g. tethers) to other exchanges (other than Bitfinex, in case of tethers) where they are accepted. Technically, you can send fiat (like dollars or whatever) too, but this is typically cumbersome and rather expensive. So there's at least one use case which accounts and allows for their existence

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May 26, 2019, 09:11:55 AM
 #87

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
It seems that that coin only has small advantages which is to avoid volatility of cryptocurrency. But this concept is not right. I think we don't need cryptocurrency like that. What we need is a cryptocurrency which  really backed by gold or silver where the creation of that coin will be supervised by global institution. So by coin like that we can really replace fiat. In USDT case actually it still useful to guide new investors. I mean is it can attract people who don't have enough braveness to invest in crypto which the price movement is very extreeme. So they will feel more comfortable to use Cryptocurrency.

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May 29, 2019, 03:24:35 AM
 #88

Even if it was 1 to 1 backed by the corporations that claims they are backed by real fiat (which some even came clear about not being 1 to 1 backed anymore so I don't know why they are worth like that) its still not the same with bitcoin. There is always risk of printing more, there is always risk of centralized issues of withdrawing money from the market, and the biggest threat of all there is always an issue of "lol gotcha" of the corporation that reeped the benefits of it and than leave as an exit scam.

Why would anyone prefer stablecoins over bitcoin I don't know, if you want to use regular fiat just use fiat anyway, there is no one stopping you to use dollars for example, that is what many people do, if you want to use bitcoin than use bitcoin but if you use tether for example that is neither as safe as bitcoin nor as accepted as dollars so whats the point.
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