The main harm of existing “Stablecoins” this is a pyramid scheme

[Kakmakr]

My issue with Stablecoins are the validity of the statement that $1 = 1 Stablecoin    It is almost impossible to trace the dollars that are supposedly backing the value of the tokens. 

If that was the case, then I think Stablecoins are actually helping inflation ...because more toilet paper money needs to be printed to back the Stablecoins in circulation. 

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[VictorProsh]

My issue with Stablecoins are the validity of the statement that $1 = 1 Stablecoin    It is almost impossible to trace the dollars that are supposedly backing the value of the tokens. 

If that was the case, then I think Stablecoins are actually helping inflation ...because more toilet paper money needs to be printed to back the Stablecoins in circulation. 

That's right, stablecoins are toilet paper, but it also devalues Fiat itself.

[noorman0]

The total capitalization of stablecoins has exceeded $180 billion and further growth is endless.
https://coincodex.com/cryptocurrencies/sector/stablecoins/

Because currently developers can create decentralized stablecoin types that are almost inaccessible to government supervision where fiat stability is precisely the result of government policies. As a result, a portion of the stablecoin's capitalization is not in the fiat reserve records.

because more toilet paper money needs to be printed to back the Stablecoins in circulation.

Decentralization is trust without collateral. When you believe in it, then you must also consider backed assets is valuable even if it's toilet paper.

[Gyfts]

Stablecoins need a stable demand and supply model to function and remain useful.

There are times when there has been a big divergence between the price of a stablecoin and fiat but afaik this could be mitigated by developers.buying and selling them based on dollar exchanges and having collateral for them.

I don't think inflation is considered a problem internally by economists (it's just an acknowledgement to look like they care when prices of things go up).

Stablecoins pegged to sustainable fiat currencies don't have this issue. Theoretically you could make a stablecoin pegged to anything of value as long as the underlying asset exists. Inflation doesn't really factor into stablecoins unless you get to a point where you need to increase the supply of coin because of decreased purchasing power with high inflation (granted the coin is pegged to a fiat currency).

Inflation is a problem if the purchasing power of any individual goes down by artificially increasing the money supply.

[dark1234]

Stablecoins I think are very different from fiat, which tends to have quite high inflation due to a stable valuation free of volatility from fiat currencies, while price stability is supported by other reserve assets, but if we look at TerraUSD and Luna which are in free fall and horrendous the crypto market at this time as stablecoins that experience significant inflation unlike others...

[aprilnot]

The main harm of existing “Stablecoins” is not controlled emission, but, accordingly, inflation.
Today, anyone can create a demon of control-print their “Stablecoins” thereby increasing the total issue of the financial bubble, what do you think?

yes I agree with you, they are easily printed without any backed. and the result is a crash when things get out of hand. this is what is happening now to UST, the price is falling because there is no backed to recover the price. the UST team only uses Luna as a workaround, which this solution makes it even worse. the price of luna fell as a result because it continued to be printed to cover the shortage of UST.

[bitgov]

My issue with Stablecoins are the validity of the statement that $1 = 1 Stablecoin    It is almost impossible to trace the dollars that are supposedly backing the value of the tokens.  

If that was the case, then I think Stablecoins are actually helping inflation ...because more toilet paper money needs to be printed to back the Stablecoins in circulation.  

Yes there is no way we can say with certainty that all coins in circulation of stable coins are backed by usd. We have recent example of UST crash (a stable coin) and its founder has done that before with Basis Cash (BAC), a stable coin that crashes in late 2020. Check this link for more details

https://www.businesstoday.in/amp/crypto/story/terra-luna-crashes-97-was-do-kwon-responsible-for-another-failed-stablecoin-333265-2022-05-12

[justdimin]

The main harm of existing “Stablecoins” is not controlled emission, but, accordingly, inflation.
Today, anyone can create a demon of control-print their “Stablecoins” thereby increasing the total issue of the financial bubble, what do you think?

I do not believe that we should be trusting the other ones either. I mean think about it, UST dropped, because they failed the algorithm part of it, but what about the ones we just simply trust? Think about how big USDT is right now, we are talking about 80+ billion dollars trusted into just one company. What happens if we all decide to sell it? They will not be able to cash them all out.

This is what they are trusting as well as a company, they think that we won't sell it all together. I do not believe that it will never happen, maybe one day it could happen and that day will be a terrible situation for all of us and that is why I never put my money in there.

[fiulpro]

Stable coins are not really concerned with inflation, they are actually connected with *the government* in a way, well that's what should have been ideally there =1$ but due to the crash in the market and some of it might also be connected to the fed increased rates, the usdt, it lost its peg quite entirely. Now this is a very tricky situation which have caused a great deal of problems for traders and the holders of USDT who thought they were holding USD perse, I don't think that changing algorithm or making improvements can ever work in this market, since what we are talking about is a market based of volatility which we tend to forget every now and then, no one is going to trust these coins again for a while.

[suzanne5223]

The main harm of existing “Stablecoins” is not controlled emission, but, accordingly, inflation.
Today, anyone can create a demon of control-print their “Stablecoins” thereby increasing the total issue of the financial bubble, what do you think?

yes I agree with you, they are easily printed without any backed. and the result is a crash when things get out of hand.

Listen to this fact, there are no assets or commodities thats stable in price, and the world stable coin used was just to categorize as an asset that will limit your investment lost to the crypto market downtrend.
StableCoin being backed is not what prevents it from crashing.

this is what is happening now to UST, the price is falling because there is no backed to recover the price. the UST team only uses Luna as a workaround, which this solution makes it even worse. the price of luna fell as a result because it continued to be printed to cover the shortage of UST.

According to the news I read, Luna experienced a dump in price due to some attacks on their platform but the project was backed with Bitcoin.

[SirLancelot]

I do not believe that we should be trusting the other ones either. I mean think about it, UST dropped, because they failed the algorithm part of it, but what about the ones we just simply trust? Think about how big USDT is right now, we are talking about 80+ billion dollars trusted into just one company. What happens if we all decide to sell it? They will not be able to cash them all out.

This is what they are trusting as well as a company, they think that we won't sell it all together. I do not believe that it will never happen, maybe one day it could happen and that day will be a terrible situation for all of us and that is why I never put my money in there.

Of course all the others are risky as well. I have been saying that USDT is not to be trusted for many years now and nobody cares about it.

I hope that this UST is a good example for them and they will realize that they can't make this type of investment and get away with it because they are basically giving all of their money to some companies in this situation, which means that we are talking about these companies could be standing today, or could be bankrupted tomorrow, how can we 100% guaranteed about the companies being certain? We can't be and that is the problem, if we can't be certain about the situation then we shouldn't invest.

[yawars20]

The concept of stable coin in crypto is sure bring lot of controversy and different speculation about stable coin too
But either its stable or non-stable the main point is, it is based on decentralization concept witch has no influence what so ever.
I personally don't have any problem with stable coin but it defy the major laws of crypto world like no control over price. This could make it almost non usable as
an investment for futuristic profit. That's my opinion.

[eaLiTy]

My issue with Stablecoins are the validity of the statement that $1 = 1 Stablecoin    It is almost impossible to trace the dollars that are supposedly backing the value of the tokens. 

I am curious to see some of these so called pegged stable currencies publish their audit report and for the most part USDT finally published a report recently which claims 83.74% of its reserves in cash, cash equivalents, short-term deposits and commercial paper, 4.61% in corporate bonds, 5.27% in secured loans to unaffiliated entities, and 6.38% in other investments including digital tokens but the fact remains that it is not clear how much dollar they pegged and my belief is that majority are commercial papers and cash equivalent.

In the coming years i am expecting the validity of centralized stable currencies will be questioned and it might change the complexion of the overall cryptocurrency market.

[CaVO32]

My issue with Stablecoins are the validity of the statement that $1 = 1 Stablecoin    It is almost impossible to trace the dollars that are supposedly backing the value of the tokens. 

I am curious to see some of these so called pegged stable currencies publish their audit report and for the most part USDT finally published a report recently which claims 83.74% of its reserves in cash, cash equivalents, short-term deposits and commercial paper, 4.61% in corporate bonds, 5.27% in secured loans to unaffiliated entities, and 6.38% in other investments including digital tokens but the fact remains that it is not clear how much dollar they pegged and my belief is that majority are commercial papers and cash equivalent.

In the coming years i am expecting the validity of centralized stable currencies will be questioned and it might change the complexion of the overall cryptocurrency market.

If we have to remember, way back in year 2019, USDT team admitted they were not fully backed by assets. So right now, are they saying the truth about their backing here or they are covering some of these with untraceable assets? Because they can say they have about 84% reserve cash in USD, but the remaining, who can prove about those papers that they really do exist. So when it comes to stablecoin, you also need to prepare that they may really not saying the truth here. And when it comes to algo-based, they are more prone to failure and hence, maybe, UST is failing today. They have no assets to peg to with their target $1. Algo? Their devs can manipulate this in my opinion..

[ajochems]

The current situation of most of the coin was bery low. Since most of the good potential coin is red and shit coin was red. Their was huge potential to inverse on tge shitcoin. So you need to careful. Investment on shitcoin will leads to lose of entire money into the cryptosystem. By this mis understand of good coin, people loss some money from the cryto currency investment.Stable coin will never take your money.

[EastSound]

The main harm of existing “Stablecoins” is not controlled emission, but, accordingly, inflation.
Today, anyone can create a demon of control-print their “Stablecoins” thereby increasing the total issue of the financial bubble, what do you think?

It wont be stable if they keep on making or minting, some of the stablecoins are stable because its backed with a real dollar. Just look up at the algorithmic stablecoins they went down because its being minted and there is asset that is backing the value.

[VictorProsh]

My issue with Stablecoins are the validity of the statement that $1 = 1 Stablecoin    It is almost impossible to trace the dollars that are supposedly backing the value of the tokens.  

I am curious to see some of these so called pegged stable currencies publish their audit report and for the most part USDT finally published a report recently which claims 83.74% of its reserves in cash, cash equivalents, short-term deposits and commercial paper, 4.61% in corporate bonds, 5.27% in secured loans to unaffiliated entities, and 6.38% in other investments including digital tokens but the fact remains that it is not clear how much dollar they pegged and my belief is that majority are commercial papers and cash equivalent.

In the coming years i am expecting the validity of centralized stable currencies will be questioned and it might change the complexion of the overall cryptocurrency market.

Absolutely right!
To introduce a Fiat monetary system into a decentralized economy with the help of artificial stablecoins is absurd. The very principle of a decentralized economy is based on its stability. An open source cryptocurrency is transparent and predictable, it can stabilize itself and manage the Fiat economy, the collapse of imaginary stable coins is an example of this. I have been working in this direction for a long time and no one has yet been able to refute the project proposed by me.
   

[Kakmakr]

The main issue with Stablecoins is the empty "promises" that they are backed on. We have now seen how some of these Stablecoins operate.... The people behind the Stablecoin will give "promises" that the coin/token is backed by something, but when something happens, they quickly sell their hoarded bitcoins to create the perception that the token is backed by BTC or whatever other token they buy with the proceeds.

So, they will ride the "promises" thing as long as they can....and when it looks like it will collapse, they come with Plan B.    They usually have a complex algorithm running the "burning" cycle and the pump and dump mechanisms. 

[jostorres]

The main issue with Stablecoins is the empty "promises" that they are backed on. We have now seen how some of these Stablecoins operate....

Maybe some stable coin owners are like that which promise that they are backed by something but they don't have proofs to show if what they are talking about is true while I think there are some that don't promise at all. They are just quiet and people at the same time have a trust on them, that is why they don't complain but still using those stable coins up until now.

The people behind the Stablecoin will give "promises" that the coin/token is backed by something, but when something happens, they quickly sell their hoarded bitcoins to create the perception that the token is backed by BTC or whatever other token they buy with the proceeds.

This sounds familiar, I think the founder of terra and ust have this promise last time. They states that they buy tons of btc for their ust stable coin but at the end they only sell btc to make a profit and not the other way around.

The main harm of existing “Stablecoins” is not controlled emission, but, accordingly, inflation.

Too much printing of money can cause too much of emission but at the same time, too much printing of money can also cause inflation. It was still the same

[VictorProsh]

“Stablecoins” is just a surrogate of an imaginary Fiat, which in essence is practically no different from electronic debit cards, the only difference is that not all exchanges work directly with Fiat and cards yet. If the US Treasury issues an electronic Dollar, then the meaning of all surrogates will simply disappear.
But that's not the main thing! Is it possible to refuse to stabilize the cryptocurrency with Fiat at all? What is the point of “Stablecoins” pegged to the dollar or to any Fiat currency if they can be printed as much as you want? A condition is necessary, on the contrary, that the Fiat issue depends on the total real volume of the decentralized world economy, and not on the whim of the local government. There is nothing more stable than the decentralized cryptocurrency itself, such as Bitcoin or open source Ethereum, which can stabilize themselves.