Bitcoin Garden Forum
Cryptocurrencies => Crypto Discussion => Topic started by: Pelanavreo on June 11, 2019, 04:20:10 PM
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Stablecoins are cryptocurrencies designed to minimize the volatility of the price of the stablecoin, relative to some "stable" asset or basket of assets. A stablecoin can be pegged to a currency, or to exchange traded commodities (such as precious metals or industrial metals). Stablecoins redeemable in commodities are said to be backed, whereas those leveraging fiat money or other cryptocurrencies are referred to as unbacked.
Source Wikipedia (https://en.wikipedia.org/wiki/Stablecoin)
I have never had a stable coin because the price can't go up or down. Stable coin prices such as Tether (USDT) always follow the price of the US dollar. What actual benefits do you get from stable coins and why do you keep these coins?
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1. Exchanges: Cryptocurrency traders can reduce their exposure to Bitcoin by selling their Bitcoin for stablecoins. This allows traders to keep their wealth on an exchange without converting back into fiat.
This is useful for two reasons. First, many exchanges take days to convert fiat into crypto, which means investors must wait to trade. Second, converting back into fiat means a tax bill is coming soon, since most exchange on- and off-ramps now require KYC-AML.
2. Inflation hedge: People in countries with high inflation and hyperinflation can hold on to stablecoins in order to preserve their savings. Bitcoin is too volatile for most people in Venezuela. Instead, they would prefer to hold onto cryptocurrencies backed by gold or Swiss francs.
3. Interbank settlement: Interbank settlement is a trillion-US dollar industry, as discussed in the chapter on Ripple in the June 2019 edition of the Crypto Research Report published by Incrementum.
Instead of giving away billions in revenue to Ripple, companies such as J.P. Morgan are releasing their own centralized stablecoins backed by fiat in order to settle transactions globally on a permissioned blockchain instead of legacy banking software.
https://ingoldwetrust.report/wp-content/uploads/2019/05/In-Gold-We-Trust-2019-Extended-Version-english.pdf
p247
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Stablecoins are cryptocurrencies designed to minimize the volatility of the price of the stablecoin, relative to some "stable" asset or basket of assets. A stablecoin can be pegged to a currency, or to exchange traded commodities (such as precious metals or industrial metals). Stablecoins redeemable in commodities are said to be backed, whereas those leveraging fiat money or other cryptocurrencies are referred to as unbacked.
Source Wikipedia (https://en.wikipedia.org/wiki/Stablecoin)
I have never had a stable coin because the price can't go up or down. Stable coin prices such as Tether (USDT) always follow the price of the US dollar. What actual benefits do you get from stable coins and why do you keep these coins?
Stablecoins, have very specific scope. To get out of the cryptocurrency market, without leaving. Let's say I want to get my profits of Bitcoin, instead of selling and get fiat currency, I buy a stablecoin, so whatever happens, I keep my value. When it's time to reinvest, I can do easily, though a cryptocurrency exchange.
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Stablecoins need to keep the value of cryptocurrencies, but I didn't try to use them yet
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Stablecoins need to keep the value of cryptocurrencies, but I didn't try to use them yet
Maybe now you want to try it because it doesn't hurt to try Stablecoins
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1. Exchanges: Cryptocurrency traders can reduce their exposure to Bitcoin by selling their Bitcoin for stablecoins. This allows traders to keep their wealth on an exchange without converting back into fiat.
This is useful for two reasons. First, many exchanges take days to convert fiat into crypto, which means investors must wait to trade. Second, converting back into fiat means a tax bill is coming soon, since most exchange on- and off-ramps now require KYC-AML.
2. Inflation hedge: People in countries with high inflation and hyperinflation can hold on to stablecoins in order to preserve their savings. Bitcoin is too volatile for most people in Venezuela. Instead, they would prefer to hold onto cryptocurrencies backed by gold or Swiss francs.
3. Interbank settlement: Interbank settlement is a trillion-US dollar industry, as discussed in the chapter on Ripple in the June 2019 edition of the Crypto Research Report published by Incrementum.
Instead of giving away billions in revenue to Ripple, companies such as J.P. Morgan are releasing their own centralized stablecoins backed by fiat in order to settle transactions globally on a permissioned blockchain instead of legacy banking software.
https://ingoldwetrust.report/wp-content/uploads/2019/05/In-Gold-We-Trust-2019-Extended-Version-english.pdf
p247
This is very good, I have long seen a stable coin and now I understand the benefits of a stable coin, it seems like a stable coin is a good idea, I have seen a new stable coin that Binance (https://www.coindesk.com/binance-confirms-stablecoin-offerings-coming-soon-report) will make recently and that is supported by the British pound, maybe every country will need stable coins to maintain the investment value they have from the benefits of Bitcoin trading
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I have stable coins like bnb, xrp and ethereum. I think the coin that I hold is a coin that is quite stable at the moment. the benefit that I get from holding a stable coin is that my crypto asset is still intact and is a long-term investment if at any time crypto bullrun.
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1. Exchanges: Cryptocurrency traders can reduce their exposure to Bitcoin by selling their Bitcoin for stablecoins. This allows traders to keep their wealth on an exchange without converting back into fiat.
This is useful for two reasons. First, many exchanges take days to convert fiat into crypto, which means investors must wait to trade. Second, converting back into fiat means a tax bill is coming soon, since most exchange on- and off-ramps now require KYC-AML.
2. Inflation hedge: People in countries with high inflation and hyperinflation can hold on to stablecoins in order to preserve their savings. Bitcoin is too volatile for most people in Venezuela. Instead, they would prefer to hold onto cryptocurrencies backed by gold or Swiss francs.
3. Interbank settlement: Interbank settlement is a trillion-US dollar industry, as discussed in the chapter on Ripple in the June 2019 edition of the Crypto Research Report published by Incrementum.
Instead of giving away billions in revenue to Ripple, companies such as J.P. Morgan are releasing their own centralized stablecoins backed by fiat in order to settle transactions globally on a permissioned blockchain instead of legacy banking software.
https://ingoldwetrust.report/wp-content/uploads/2019/05/In-Gold-We-Trust-2019-Extended-Version-english.pdf
p247
This is very good, I have long seen a stable coin and now I understand the benefits of a stable coin, it seems like a stable coin is a good idea, I have seen a new stable coin that Binance (https://www.coindesk.com/binance-confirms-stablecoin-offerings-coming-soon-report) will make recently and that is supported by the British pound
If the point of cryptos is to liberate us from the Central Banks power, a fiat-based crypto is not really appetible :)
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I have stable coins like bnb, xrp and ethereum.
Those are not stablecoins, vanjava :)
They don't have a mechanism built in that guarantees the stability of their value.
They are not designed to be stable.
There are 4 types of stablecoins:
a) Fiat-collateralized stablecoins
b) Crypto-collateralized stablecoins
c) Asset-collateralized stablecoins
d) Non-collateralized stablecoins
https://coindiligent.com/analysis-types-of-stablecoins
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Stablecoins are cryptocurrencies designed to minimize the volatility of the price of the stablecoin, relative to some "stable" asset or basket of assets. A stablecoin can be pegged to a currency, or to exchange traded commodities (such as precious metals or industrial metals). Stablecoins redeemable in commodities are said to be backed, whereas those leveraging fiat money or other cryptocurrencies are referred to as unbacked.
Source Wikipedia (https://en.wikipedia.org/wiki/Stablecoin)
I have never had a stable coin because the price can't go up or down. Stable coin prices such as Tether (USDT) always follow the price of the US dollar. What actual benefits do you get from stable coins and why do you keep these coins?
Yes its USDT But the way that price move on any stablecoin is not enough for me Crypto volatility is much better to me.
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I have stable coins like bnb, xrp and ethereum. I think the coin that I hold is a coin that is quite stable at the moment. the benefit that I get from holding a stable coin is that my crypto asset is still intact and is a long-term investment if at any time crypto bullrun.
Agree with you mate :) Last three months proves that most of my portfolio is similar to stable coins :) No increase or no decrease in price. We need stable coins when price fluctuation is high. Otherwise, I never use them. Although they are very useful I really couldn't not like them.
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I haven't been into stablecoins so far, but I see that many people recommend it. Thanks for your all comments, it was good to learn something more and now I know that I will do something more with that topic
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I haven't been into stablecoins so far, but I see that many people recommend it. Thanks for your all comments, it was good to learn something more and now I know that I will do something more with that topic
If you don't want your money, in fiat currency, you can buy a stablecoin, and have a cryptocurrency, that has stable value, like USDT.
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I haven't been into stablecoins so far, but I see that many people recommend it. Thanks for your all comments, it was good to learn something more and now I know that I will do something more with that topic
Coin stable is very safe and is not at high risk in saving assets, because prices are not so volatile, so prices can always be said to be stable
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No, I don't have any stable coin. That is very difficult tp find it. 8