x

[VSYNC_]

Why even bother if you're going to peg it to a fixed time USD value, might as well just keep it at 1 BTC = 1 BTC. That's forever stable.

Since USD is centralized, USDT or Tether is the closest thing, what you would need is for some bigger corporation or even a government to back the stablecoin with the fiat. More than likely, it might just create more just like fiat does, but it can do so any time indirectly by getting fiat first.

i dont think you quite understood what im proposing here,  1 btc = 1 btc is just bitcoin itself, there is nothing like what i am proposing right now on the market, the implications could be huge, it could be used for usd/value trading without having to pick another stable fiat currency to pair it with eg usd/eur, or you could trade btc/value which over a longer term would give an exact price value realization of the past prices.

I'm still struggling to wrap my head around the concept.  Can you explain it in a few sentences?

[RooseveltOah]

It depends on how you define stability. Stability is never absolute, it’s always relative, and it exists in people’s minds and have never been objective.

What people conceive as stable, is actually what they are used to, the world is used to price things with USD, the majority of people would think USD is always stable, introducing a new standard that is pegged to say gold, real estate, farmlands, or other assets that are considered relatively stable would not gain any traction because that is not how people think.

One possible exception is if USD goes into some hyperinflation is a short period of time that causes a lot of pain, if then and only then people will start looking for alternatives to price things, and a new standard of stability would be introduced.

In a lot of the whitepapers this was mentioned, a project named Fragments (I think they changed their name into something else now), and also one of my favorite project called Reserve, in the whitepapers they have both mentioned if the value of USD starts to drop so much, they’d starting pegging their stable coins to a basket of goods, whatever that may be.

Do this as a thought experiment, if Reserve starts to peg their stable coin to a basket of goods today, and not USD, would you consider is stable? Can you imagine exchanges start pricing BTC with Reserve and gain adoption? Probably not.

[RooseveltOah]

Why even bother if you're going to peg it to a fixed time USD value, might as well just keep it at 1 BTC = 1 BTC. That's forever stable.

Since USD is centralized, USDT or Tether is the closest thing, what you would need is for some bigger corporation or even a government to back the stablecoin with the fiat. More than likely, it might just create more just like fiat does, but it can do so any time indirectly by getting fiat first.

Algorithmic solutions are going to be the way forward, there is a limited lifespan for fiat-collaterialised stable coins.

Put it this way, Tether is far and above the most successful and widely used stable coin today, it was created in 2014, and there's been nothing that has outperformed it yet.

The total marketcap of Tether is 4 billion, how much USD would need to be held by Tether in order to provide a service to the other 99.9% of the world that isn't a part of crypto markets?

Can one company be trusted to hold that much wealth and no either accidentally or maliciously mismanage it?

Same problem for any fiat-collateralised solution.

Tether and other stable coins including Dai are starting to explore multi-collateral models, this should in theory solve the scalability issue, maybe not as fast as algorithmic stable coins but I don’t see one of those gaining any traction now.

[VSYNC_]

Why even bother if you're going to peg it to a fixed time USD value, might as well just keep it at 1 BTC = 1 BTC. That's forever stable.

Since USD is centralized, USDT or Tether is the closest thing, what you would need is for some bigger corporation or even a government to back the stablecoin with the fiat. More than likely, it might just create more just like fiat does, but it can do so any time indirectly by getting fiat first.

Algorithmic solutions are going to be the way forward, there is a limited lifespan for fiat-collaterialised stable coins.

Put it this way, Tether is far and above the most successful and widely used stable coin today, it was created in 2014, and there's been nothing that has outperformed it yet.

The total marketcap of Tether is 4 billion, how much USD would need to be held by Tether in order to provide a service to the other 99.9% of the world that isn't a part of crypto markets?

Can one company be trusted to hold that much wealth and no either accidentally or maliciously mismanage it?

Same problem for any fiat-collateralised solution.

Tether and other stable coins including Dai are starting to explore multi-collateral models, this should in theory solve the scalability issue, maybe not as fast as algorithmic stable coins but I don’t see one of those gaining any traction now.

I've been trying to send you a pm.. can you either pm me or change your settings to allow newbies to pm you?

[seoincorporation]

There is the issue, stamble coins don't mean they will always have the same value, that means it will have the same value against some local coins, and that coin now days is USD dollar. But if the dollar goes up, then the stable coin goes up with it. And the ones who get really affected are 3rd world countries and other countries who don't have dollars as main value.

Maybe in the future we will have some stable coins based in Euros or Rubles.

[Dabs]

There are already stable coins based on Euros or other currencies. They're just not as popular as the USD based stable coins because ... more people would prefer to use USD than others except for their own country if a stable coin exists for their fiat currency base.

[posi]

There is the issue, stamble coins don't mean they will always have the same value, that means it will have the same value against some local coins, and that coin now days is USD dollar. But if the dollar goes up, then the stable coin goes up with it. And the ones who get really affected are 3rd world countries and other countries who don't have dollars as main value.

Maybe in the future we will have some stable coins based in Euros or Rubles.

As already said by Dabs there are already stablecoins based in euro and I believe TUSD are the first to create one but I'm a kind of person that don't totally believed in stablecoins which are backed by fiat currency because incapable of fiat currency was the reason why crypto came into the picture.
I read an article which says

Both fiat and representative money are backed by something. Without any backing, they would be completely worthless. Fiat money is backed by the government, while representative money can be backed by any number of things. For example, a personal check is backed by the money in a bank account.

[ATSgrowth]

The question that probably never be answered is: Centralized Stable Coin or Decentralized one? Or backed by a dollar or backed by collateral like DAI?
Who knows, this industry is pretty young and until something very bad happens we won´t know it.

[bitcoin-shark]

stable coins are useful for traders to exit day trading and keep the daily earnings, I like it very much that once tokenized in cdai, idai, sdai through defi sites it can give interest of up to 8% per annum through staking, then there is ekon which is guaranteed by gold and have a swiss based company...