Are stable coins the solution for price volitility?

[bobnexxus]

Cryptocurrency is often criticized for its price volatility. Some solutions are attempting to control price volatility by price controls (i.e. USDT, Ample).  Is this really the correct solution?

The current crypto price volatility is caused by 100% buyer demand dependency on speculative trading. Emotional speculators turn with the latest news or hype.  Of course, prices will be most volatile when they are solely dependent on speculation.   

More mature publicly traded assets like gold and silver don't have the price volatility of crypto because the majority of their buyer demand comes from their utility. Gold and silver are guaranteed to be purchased regularly for its utility purpose of manufacturing electronic components, jewelry, etc.   

Similar to the dot com era, many napkin ideas had millions of dollars thrown at them, but the only ones that survived were the ones with a sustainable business model.

As crypto matures, the successful projects will be those that create the majority of their buyer demand from real utility. 

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[makishart]

That's really the correct solution. how many platforms are tried to fix it by used their own formula and you can see as the result the demand and supply will always create the volatility. The only solution to fix it to make a crypto that backed by fiat or commodity and that will fix the volatility.

[BitFinnese]

I guess yes, but if cryptocurrency is dominated by stable coins then this industry will get boring.  And many investors will turn its back unless this stablecoins are like security tokens where holders can get a share of the company's profit.

[akram143]

Cryptocurrency is often criticized for its price volatility. Some solutions are attempting to control price volatility by price controls (i.e. USDT, Ample).  Is this really the correct solution?

The current crypto price volatility is caused by 100% buyer demand dependency on speculative trading. Emotional speculators turn with the latest news or hype.  Of course, prices will be most volatile when they are solely dependent on speculation.   

More mature publicly traded assets like gold and silver don't have the price volatility of crypto because the majority of their buyer demand comes from their utility. Gold and silver are guaranteed to be purchased regularly for its utility purpose of manufacturing electronic components, jewelry, etc.   

Similar to the dot com era, many napkin ideas had millions of dollars thrown at them, but the only ones that survived were the ones with a sustainable business model.

As crypto matures, the successful projects will be those that create the majority of their buyer demand from real utility. 

it is not the only reason available to solve these kinds of problems because it involve lots of politics and also lots of confused decision will made this type of situation to be happened otherwise if we find the right situation only we can easily solve them

[mirawantirinjana]

no, stable coins are not a solution to price volatility, they are only as a counterweight to prices in the price volatility in the market exchange. but remember this is not a solution to the price volatility in the market.

[NeuroticFish]

Is this really the correct solution?

I think that stable coins are part of the problem and make it worse; they're not the solution.

The solution would be healthy volumes. Volumes that are not driven by speculation bots selling and buying and equalizing the prices between various exchanges. The solution would be exchanges with no 0-fee and fake volumes. The solution would be to allow the market mature.

[Partisson]

I guess yes, but if cryptocurrency is dominated by stable coins then this industry will get boring.  And many investors will turn its back unless this stablecoins are like security tokens where holders can get a share of the company's profit.

I agree with you, if the coin is stable, it will be difficult for investors to profit, it is precisely where the uniqueness of the altcoin cannot be stable, it can change at any time in unexpected periods of time.

[AltcoinsBattle]

no, stable coins are not a solution to price volatility, they are only as a counterweight to prices in the price volatility in the market exchange. but remember this is not a solution to the price volatility in the market.

Almost so. Stable coins look like a prop or an island of silence in times of volatility.
In the stock market, investors often convert their assets into dollars. Hedging is also used. However, there is always mainstay like a dollar. Crypto assets can also have a dollar as a base.

[omonuyak]

I guess yes, but if cryptocurrency is dominated by stable coins then this industry will get boring.  And many investors will turn its back unless this stablecoins are like security tokens where holders can get a share of the company's profit.

I agree with you, if the coin is stable, it will be difficult for investors to profit, it is precisely where the uniqueness of the altcoin cannot be stable, it can change at any time in unexpected periods of time.

There is notting much any one can do about the stability of bitcoin and altcoins price except the forces of demand and supply. It is the laws of economic that bitcoin is also following. If the demand keeps increasing which will likely happen then the volatility will be there no matter how many stable coins we have in the market.

[Ridho_ost]

I guess yes, but if cryptocurrency is dominated by stable coins then this industry will get boring.  And many investors will turn its back unless this stablecoins are like security tokens where holders can get a share of the company's profit.

I agree with you, if the coin is stable, it will be difficult for investors to profit, it is precisely where the uniqueness of the altcoin cannot be stable, it can change at any time in unexpected periods of time.

yes I agree with you friends, for me too, if the coin has no development, it is only stable, not attractive. Maybe not for me alone. But investors also think, how money itself can develop and can generate profits if the coin do not develop

[unusualfacts30]

Cryptocurrency is often criticized for its price volatility. Some solutions are attempting to control price volatility by price controls (i.e. USDT, Ample).  Is this really the correct solution?

The current crypto price volatility is caused by 100% buyer demand dependency on speculative trading. Emotional speculators turn with the latest news or hype.  Of course, prices will be most volatile when they are solely dependent on speculation.   

More mature publicly traded assets like gold and silver don't have the price volatility of crypto because the majority of their buyer demand comes from their utility. Gold and silver are guaranteed to be purchased regularly for its utility purpose of manufacturing electronic components, jewelry, etc.   

Similar to the dot com era, many napkin ideas had millions of dollars thrown at them, but the only ones that survived were the ones with a sustainable business model.

As crypto matures, the successful projects will be those that create the majority of their buyer demand from real utility. 

Price volatility is what makes crypto exciting for many people. Yes, stable coin can help the volatility but do you really want stablility in crypto? there aren't many opportunities for investors and miners alike.

[cepot9]

we can never hope that all coins will be stable, because of the fluctuations that characterize cryptocurrency. but from the many projects here no longer need to need a stable coin and not develop because the project will continue to experience ups and downs every time it passes

[whirlcoin]

Cryptocurrency is often criticized for its price volatility. Some solutions are attempting to control price volatility by price controls (i.e. USDT, Ample).  Is this really the correct solution?

The current crypto price volatility is caused by 100% buyer demand dependency on speculative trading. Emotional speculators turn with the latest news or hype.  Of course, prices will be most volatile when they are solely dependent on speculation.   

More mature publicly traded assets like gold and silver don't have the price volatility of crypto because the majority of their buyer demand comes from their utility. Gold and silver are guaranteed to be purchased regularly for its utility purpose of manufacturing electronic components, jewelry, etc.   

Similar to the dot com era, many napkin ideas had millions of dollars thrown at them, but the only ones that survived were the ones with a sustainable business model.

As crypto matures, the successful projects will be those that create the majority of their buyer demand from real utility. 

yes your point is valid because the stable kinds makes some changes in the price volatility but we cannot 100% sure about it will only the solution for that but it make changes this problem.

[zhekinsp]

Definitely stable coins make some changes in this situation but it will not give the complete solution for the price volatility so we need to find the exact solution for that then only we can make some changes in this

[BitcoinPanther]

we can never hope that all coins will be stable, because of the fluctuations that characterize cryptocurrency. but from the many projects here no longer need to need a stable coin and not develop because the project will continue to experience ups and downs every time it passes

Lol, there are coins that were created to be equal to USD as 1:1.  They are called stablecoin if you yet to know it.  It is created to counter the high volatility of cryptocurrency so that holders can easily convert it from cryptocurrency to USD and or buy another asset or coins without worrying price fluctuaiton.

You can read this to know more about stable coins.

[rodel caling]

Great solution for crypto stop volality fluctuations, I think that's the way government need to develop because we should government want to regulate bitcoin because of high volatility movements of price value to avoid a lot of risk for the investor or crypto holder's.

[Julunguul]

That's really the correct solution. how many platforms are tried to fix it by used their own formula and you can see as the result the demand and supply will always create the volatility. The only solution to fix it to make a crypto that backed by fiat or commodity and that will fix the volatility.

If you really want good stablecoin, not only supply and demand is a problem, but the pair also has a big impact, crypto-fiat pair like USDT / USDC is better than the major coin like BTC / ETH

[hirngespenst]

I don't think it is the solution! Stable coin helps traders to back their token from dumping! BTC to stable coin trading pair is very profitable right now, people are making a profit through the stable coin! But this is not solution for the crypto volatility problem! Still, crypto coin's price gets dump or up because of news! I don't know the solution yet, but stable coins are not the solution in my view!

[Chikito]

Similar to the dot com era, many napkin ideas had millions of dollars thrown at them, but the only ones that survived were the ones with a sustainable business model.
As crypto matures, the successful projects will be those that create the majority of their buyer demand from real utility. 

I am not agree this similar dot com era, Kim have such project across the rules has created by goverment and he use other country to continue project.
Crypto haven't rules has porbiden any country, goverment not yet and still make rules for new crypto technology

[Al-e_x]

If you are a person who does not like high fluctuations, such as Bitcoin and most altcoin, then stable coin is the best choice, but the profit generated from stable coins is not the same as Bitcoin and altcoin