does the stable coin require an underlying?

[taufik0911]

 
based on my experience in economics when currencies are printed to create a stable price that ensures the underlying and also the right financial circulation
is it like that in cryptocurrency?
If the cryptocurrency uses the underlying, will the cryptocurrency be more stable than other altcoins?
in my opinion, if a cryptocurrency uses the underlying, the cryptocurrency has a fixed value based on the value of the underlying
for example if the underlying of project X uses the real underlying property and the supply keeps changing based on the underlying, will the altcoin be said to be a real asset and can it be legal?

[Ucy]

Could you explain what you mean by "underlying"?

based on my experience in economics when currencies are printed to create a stable price that ensures the underlying and also the right financial circulation
is it like that in cryptocurrency?

Anyway, deflationary cryptocurrency (or crypto that is scarce or limited in supply) are designed to increase in price when demand for the crypto is more than supply.
Whereas National currencies, which are inflationary (or unlimited or abundant in supply), are designed to maintain fairly stable prices long-term whether demand increases or decrease.

If the cryptocurrency uses the underlying, will the cryptocurrency be more stable than other altcoins?

A deflationary cryptocurrency can certainly become as stable as national currencies if it has unlimited supply that is regulated to maintain its price long-term at certain price level... by increasing its supply when demand increases and decreases its supply when demand decreases.

in my opinion, if a cryptocurrency uses the underlying, the cryptocurrency has a fixed value based on the value of the underlying
for example if the underlying of project X uses the real underlying property and the supply keeps changing based on the underlying, will the altcoin be said to be a real asset and can it be legal?

Altcoin backed by physical(real?) assets will be dependent on the supply on the physical/real assets. It can only change in supply when the supply of the physical assets changes. It's simply backed by physical/real assets and can be considered legal.

[agan husaeni]

Could you explain what you mean by "underlying"?

based on my experience in economics when currencies are printed to create a stable price that ensures the underlying and also the right financial circulation
is it like that in cryptocurrency?

Anyway, deflationary cryptocurrency (or crypto that is scarce or limited in supply) are designed to increase in price when demand for the crypto is more than supply.
Whereas National currencies, which are inflationary (or unlimited or abundant in supply), are designed to maintain fairly stable prices long-term whether demand increases or decrease.

If the cryptocurrency uses the underlying, will the cryptocurrency be more stable than other altcoins?

A deflationary cryptocurrency can certainly become as stable as national currencies if it has unlimited supply that is regulated to maintain its price long-term at certain price level... by increasing its supply when demand increases and decreases its supply when demand decreases.

in my opinion, if a cryptocurrency uses the underlying, the cryptocurrency has a fixed value based on the value of the underlying
for example if the underlying of project X uses the real underlying property and the supply keeps changing based on the underlying, will the altcoin be said to be a real asset and can it be legal?

Altcoin backed by physical(real?) assets will be dependent on the supply on the physical/real assets. It can only change in supply when the supply of the physical assets changes. It's simply backed by physical/real assets and can be considered legal.

i think altcoin will never be physical, because the definision of altcoin is digital money / digital assets. and if that come truee ( altcoin will have physical assets ), that will be hard. because we know not all country receive payment with altcoin.

[kingzpro]

I think basically the topic starter is a bit confused with his own question and from 'underlying' he most probably means 'backed by'. So the thing is that as far as crypto market is concerned most of the stablecoins are backed by 1:1 fiat or usd and that is the reason why their value stays constant. As far as other crypto projects are concerned they are backed by only the project, development, team, userbase and similar other factors but not fiat. But both stablecoins and genuine coins are legal and the world is fast moving towards completely compliant and legal crypto market.

[TheUltraElite]

based on my experience in economics when currencies are printed to create a stable price that ensures the underlying and also the right financial circulation is it like that in cryptocurrency?

Does bitcoin have a underlying asset? Or do people believe in it and can transact in it making it worthy? I guess this part of the economics is still grey in terms of textbook knowledge and needs more research.

If the cryptocurrency uses the underlying, will the cryptocurrency be more stable than other altcoins?

We can take up the scenario of the Stablecoin USDT, it is backed by USD on the Omni blockchain but somewhat considered a scam by many crypto-users.

will the altcoin be said to be a real asset and can it be legal?

Legality is decided by the ones governing us. Not going into discussions of Anarchist ideals but if they declare it as illegal then there is little you can do about it.

Back to the question in your title, I think most stablecoins out there have a backing. Bitcoin not being a stablecoin does not have any backing. However this is not a proper explanation if the reverse is also true or not, just stating of facts.

[chip1994]

Yes, it would certainly be legal. But the question of credibility is still something that the Crypto market doesn't have the best answer for. In addition, the use of cryptocurrencies will make it very inconvenient for those who dont know how to use technology, which is also the reason why cryptocurrencies are not viral everywhere.
Besides, technology also has its weaknesses depend on network and power to operate. So if any government intends to use electronic stable money, the chances are high that they will be attacked by hackers. There are many reasons why we should not use electronic stablecoins.

[Francis Freeman]

based on my experience in economics when currencies are printed to create a stable price that ensures the underlying and also the right financial circulation
is it like that in cryptocurrency?
If the cryptocurrency uses the underlying, will the cryptocurrency be more stable than other altcoins?
in my opinion, if a cryptocurrency uses the underlying, the cryptocurrency has a fixed value based on the value of the underlying
for example if the underlying of project X uses the real underlying property and the supply keeps changing based on the underlying, will the altcoin be said to be a real asset and can it be legal?

The current crypto market and the purpose for what the stable coins are used for means that yes we do need a fixed underlying asset to make sure that the stable currency is infact stable and is not printed at will.

[Shallow]

To the best of my knowledge, I think this issue of underlying varies, first, most stablecoins are believed to have an underlying, even though it is still not clear to a lot of people while on the other hand, most altcoins are not backed by any tangible underlying other than the team's idea, and all that, which in most cases can not be trusted, which also faces volatility. Also, talking about real asset, I think altcoins are not developed to be legal, because for it to happen, a lot of thing will be taken into consideration and a lot of things will change as well, and that will likely disrupt a lot of things, like bringing in huge regulations etc. Hence my understanding is, altcoins with underlying are those of stablecoins, in this case they will have stable price but can not be legal.

[taufik0911]

i think altcoin will never be physical, because the definision of altcoin is digital money / digital assets. and if that come truee ( altcoin will have physical assets ), that will be hard. because we know not all country receive payment with altcoin.

It makes perfect sense that Altcoin will never exist in physical form, considering its function and name, which is digital / digital asset. especially if we examine the acceptance in all countries, obviously it will be very difficult for Altcoins because each country has its own physical currency.

I think this is off topic, because what I'm saying is if the altcoin has an underlying not a physical one
very much different between the physical form and the underlying, I hope you learn a little about the underlying because it is a different thing
This is what I think is you do not read what I wrote