Do you think that stablecoins are better beside Bitcoin?

[YellowSwap]

I want you all to be aware that Satoshi's wallet address came to life today, with 2 million in stable coin sent into the wallet address via lightning Network.



Gott ya!

This isn't the real satoshis Nakamoto Bitcoin wallet, this is a Bitcoin Lightning wallet project called wallet of Satoshi.

They added stable coin on Bitcoin lightning Network.
My question is do you believe that this will be useful?

Do you believe that stablecoins are better on LN than other altcoins chain?
This won't make any difference with centralisation and decentralisation I believe..

Self-custodial stablecoin they claimed. You believe that idea?

[[btc]]

I don't think they "added it to LN"...they just povided users the option to send/receive stablecoins (stablecoin wallet), along with the already existing option to send lightning payments (LN wallet) - all in the same app.

Personally, I've never liked stablecoins, and I've never used them not once in my entire life. Online services/devices connected to the internet, including apps, that claim "self-custody" just rub me the wrong way for reasons that I'm sure have been overexplained here by others already. All I can say, is that even if you hold your stablecoins in cold-storage offline, there's still way too much trust involved:

• Is the third-party holding reserves? Are they always going to be?
• Are the banks safeguarding those reserves trustworthy?
• Are the regulators/auditors doing a good job of ensuring reserve claims are true?

Even then, there are 50 other problems associated with stablecoins that I enjoy, anxiety-free, opting out of dealing with them in any shape/form.

[Oshosondy]

Self-custodial stablecoin they claimed. You believe that idea?

Self-custody of the coins that can be seized. If I am having stable coins like USDT and USDC, I do not feel like I have complete control over the coins. In short I do not believe in the idea at all.

It has been long that I use the wallet because it was not giving me seed phrase that I can backup.

[CryptoYar]

Self owning aspect is a subject worth looking at, while stablecoins on Lightning is very interesting development. By design, stablecoins need to have a central company to keep value steady, USDT has Tether, USDC has Circle. The underlying coin, however, is still centrally controlled, and can be frozen at wallet issuer level, whatever the wallet does on the Lightning level. That is basic fact that does not need to change with makeup of wallet. Big issue is whether or not it is positive or negative development for Bitcoin core purpose to include stablecoins on Lightning. Purists will think it to confuse the issues. For practical people, it means more usefulness and use of the Lightning. Self owning claim is not one that passes true test, however.

[Dunamisx]

To answer your question.

1. To some it might be useful, but someone like me will not try such, there's nothing like self custody in this regard, this is not the first time you will be seeing a centralized exchange advertising for a self custody wallet as claimed service they provided.

2. Why this may not be a safe practice starts from the app or platform used, claiming lightning network is just out of context, your stablecoins should either be in your non custodial wallet or a custodial wallet.

[OcTradism]

Self-custody of the coins that can be seized. If I am having stable coins like USDT and USDC, I do not feel like I have complete control over the coins. In short I do not believe in the idea at all.

It's only true with Bitcoin while with altcoins such as stable coins, it's untrue.

Stable coins can be frozen in non custodial wallets, and even it's not seizure, you still lose your stable coins if your fund is frozen through smart contracts. For long term storage, Bitcoin is my most favorite choice because it is safest one, and Bitcoin blockchain is a most secure one too.

PSA: Most Stablecoins Can Be Frozen, Even in Your Own Wallets

[IjawMan]

There is nothing literally practical of a self-custodial with stablecoin if the coins can still be freeze by the issuers what then is the essence of a private key. All of the idea is nonsense to me, if it is not bitcoin it can never like it and placing anything else aside to share a connection with it do not change the a thing even with trying to rob it with BTC

[joniboini]

Do you believe that stablecoins are better on LN than other altcoins chain?

I don't really buy it. Speaking of practical things, would people be willing to open a new channel just to use stablecoins? Why not use Bitcoin directly at that point. I mean sure, it allows you to use your crypto without spending Bitcoin, but the difference with alts isn't that huge imo. As someone who used various alts to pay for stuff, the difference between speed, fees, and so on are hard to feel. Even the network security are difficult to compare.

[KiaKia]

This makes no sense, I guess it's just a promotional thing from the project part, to attract people who can't tell the difference, definitely not for someone like me

Stablecoins remains centralised even if it's possible to run on other Blockchain even if it's possible on Bitcoin network, they can and will freeze your stablecoin if the need arises.

Staying beside Bitcoin? That's stupid, a foolish marketing strategy that altcoins are well known for.

[SeriouslyGiveaway]

This makes no sense, I guess it's just a promotional thing from the project part, to attract people who can't tell the difference, definitely not for someone like me

Stablecoins remains centralised even if it's possible to run on other Blockchain even if it's possible on Bitcoin network, they can and will freeze your stablecoin if the need arises.

Staying beside Bitcoin? That's stupid, a foolish marketing strategy that altcoins are well known for.

The world is huge enough and it's good to have diversifying options in life, not only in cryptocurrency market. Bitcoin is secure, decentralized, censorship-resistant, and it's the best cryptocurrency but it's also very good to have altcoins so that they together make up a cryptocurrency industry and ecosystem. It's not bad to have stable coins in cryptocurrency ecosystem but people have to know pros and cons of Bitcoin and stablecoins for example, and know what to do with their capital in short term and long term.

Like there are centralized exchanges and decentralized exchanges, people have to know pros and cons of different exchange types, and take care of their capital properly.

[Chinesebaby]

Do you believe that stablecoins are better on LN than other altcoins chain?
This won't make any difference with centralisation and decentralisation I believe..

Self-custodial stablecoin they claimed. You believe that idea?

Enabling Stable coins on the Bitcoin lighting network is indeed a new technology that is in its early stage in the crypto industry right now. And since stable coins like USDT is already been used on the Tron and Ethereum blockchain, having it on the Bitcoin lighting network will literally make more sense, as sending and receiving of stablecoins will now be very fast to arrive in seconds just as Bitcoin does when it's been send through the lighting network. However, having stable coins on the Bitcoin lighting network doesn't stop it from still been pegged to the dollar, but rather benefits from the lighting speed. Which is why this seems to be getting popular lately.

[YOSHIE]

Self-custodial stablecoin they claimed. You believe that idea?

As far as I know, Stablecoins and Bitcoin have different goals and functions, these two things can be said that Stablecoins are no better than Bitcoin itself, Bitcoin can be said to be without third parties, moving based on a global network, meaning without controllers, In contrast to Stablecoins there is a very high risk of third parties, as you said above, Stablecoins are dependent on the assets of the issuer.

In the investment sector, of course Bitcoin is superior to Stablecoins, we generally know Bitcoin as a store of value, while Stablecoins only function for price stability in transaction/payment methods, such as USDT or USDC.

[tbct_mt2]

In contrast to Stablecoins there is a very high risk of third parties, as you said above, Stablecoins are dependent on the assets of the issuer.

In the investment sector, of course Bitcoin is superior to Stablecoins, we generally know Bitcoin as a store of value, while Stablecoins only function for price stability in transaction/payment methods, such as USDT or USDC.

Stable coins are not for investment because portfolios won't increase in values by holding stablecoins.
Cryptocurrency asset seizure.
Stable coins and blacklists.

A latest example
OFAC Sanctions Iran Central Bank Crypto Wallets, Freezing $131M in Stablecoins.

Even if don't hold stable coins as investment (they are never for that purpose), people hold stable coins are actually holding waiting risk that can turn to fund seizure and loss.

[Findingnemo]

Stablecoins are the same no matter on which blockchain they are running, the characteristics are the same, and they are centralized so that it can be frozen even on your own address. I use stablecoins for certain purposes like trading on exchanges, depositing as a gambling fund, etc.

But I never recommend stablecoins for holding purposes or any other long-term usage, it is merely for convenience, fast withdrawals on a centralised platform such as exchanges and casinos.

[Forsyth Jones]

I liked the decision. I mainly use stablecoins to convert USD to fiat currency. I know there is the freezing issue, but I'm not going to hold onto stablecoins for so long, it's only for a quick swap I use at the time of the transaction.

I didn't look favorably on the Wallet of Satoshi before it became openly self-custody, but things are different now. I haven't used it yet, but it's on my list.

However, since funds can also be frozen, it doesn't make that much difference to use Lightning for that, as there are options like the ETH network, etc. (it might be worthwhile if one network has a cheaper fee than another).

Now, regarding the partisan and philosophical side, I believe that Bitcoin is the best currency to use in commerce because of its decentralization and the entire philosophy behind it, it's what I prefer, but people are using stablecoins in commerce because they consider them more practical. The good side of this is that when the time comes to use Bitcoin, whether out of necessity, local hyperinflation or rampant persecution against self-custody by governments, people will have learned to use P2P currencies, since they did this daily with stablecoins (send, receive, scan QR code, copy address).

[crwth]

I was about to believe you, OP, lol. 

You better remember that not all Fiat-backed are the same. It's mostly centralized and has different protocols for making sure they have 1:1 to the dollar. Mostly, it's not that simple IMO.

Better choose something, like USDT vs USDC. I don't think all stablecoins are equal.

You should know your goal, whether you want to preserve value or risk it.

[Oshio-man]

If you have purchased bitcoin before and use your electrum to hold it for long term, i think you will not going to pay attention to stablecoin because you know that it will not going to favour you the way bitcoin will favour you, many successful investors successful  have used bitcoin to grow a lot of income from their investments to become who they are today in the country, and if you look at stablecoin, it will be difficult for stablecoin investors to make such huge amount of funds because advantage to grow wealth from bitcoin is very easy for investors to achieve.

[Mahiyammahi]

They added stable coin on Bitcoin lightning Network.
My question is do you believe that this will be useful?

Yes, why not? It's added another option for those who use the Lightning Network the most. I am just saying that it opens up more ways to trade USDT. Tether is trying to capture all sorts of markets. If a user uses USDT, it would be convenient for them to use it on the LN network.

Do you believe that stablecoins are better on LN than other altcoins chain?
This won't make any difference with centralisation and decentralisation I believe..

Self-custodial stablecoin they claimed. You believe that idea?

It's nothing to do with decentralisation . Do not forget that Tether has been accused for lack of transparency before . U.S. Commodity Futures Trading Commission fined over $41M to tether for their lack of transparancy and missprints the USDT.

So I would say your money your choice. If you deal it as a new feature and only use it as a daily driver than it won't be any issue . Just don't keep you all fruits in one basket

[pooya87]

My question is do you believe that this will be useful?

Well anything can have some usages, even fiat through corrupt banking system. Stablecoins serve their purpose too but people need to be careful not to fall for the advertisement. These are still centralized and highly risky altcoins to use.

Do you believe that stablecoins are better on LN than other altcoins chain?

No. I think tokens should be on token-creation-platforms.

Self-custodial stablecoin they claimed. You believe that idea?

You have full custody until you don't (they freeze your funds)

[Catenaccio]

These are still centralized and highly risky altcoins to use.

No. I think tokens should be on token-creation-platforms.

You have full custody until you don't (they freeze your funds)

Many people even don't know difference between coins and tokens. Technically, most stable coins are tokens, not coins because they are not native currencies of any blockchain, but only deployed on available altcoin blockchains.
Definition of tokens.

Risk of stable coins, depeg to fund freeze.
Tether can freeze stable coins in your wallets
Stable coins: a deep dive into valuation and depegging.