Introducing: 2019 State of Stablecoins Report

[MVT$]

Article from https://blog.blockchain.com/2019/02/20/introducing-2019-stablecoins


At Blockchain, we’re committed to doing more than making it easy to speculate on crypto assets. We’re here to build a better financial system that allows billions across the globe to access an open, fair and accessible future while retaining financial sovereignty.

We believe stablecoins play an important role in delivering on that vision, by enabling the use of crypto for day to day economic transactions without the fear of price volatility, and could act as a tipping point into wider crypto adoption.

Last year, our first major research report analyzed the rapidly growing world of stablecoins. The report took a detailed look at the strengths, trade-offs and concerns associated with all 57 active stablecoins, using a new data set that included previously non-public information.

Today, we’re excited announce the release of the 2019 State of Stablecoins report. The 2019 report builds on its predecessor to provide an updated and expanded look at the current state of the stablecoin market - a space where we expect to see significant innovation in the coming years. It includes:

   - New research primers on three leading stablecoins: Paxos Standard, Stasis and Reserve;

   - A new in-depth comparison of Paxos Standard, USD Coin and Gemini Dollar;

   - Expanded data profiles on 34 stablecoins, including many new stablecoins (the report is twice the size of its predecessor!);

   - Refreshed data and analysis across the full report to reflect the substantial changes observed over the last six months; and

   - An overview of how to gain investment exposure to the growing use of stablecoins



View Point Summary

1. While there is a great deal of excitement surrounding stablecoins, the technology is still nascent and further experimentation (and innovation) is expected

2. As we correctly forecasted in our last report, some of the enthusiasm for algorithmic stablecoins has at least temporarily dampened due to the exit of Basis and growing concerns over whether some stablecoins can successfully navigate legal uncertainty and securities laws

3. Due to the aforementioned design uncertainty as well as regional factors (e.g., local regulations), we continue to believe that space exists for approximately 5-8 significant stablecoins in the short to medium-term; our view here received some validation in Q4 2018 with the reduced dominance of Tether

4. Stablecoins continue to be more complementary than competitive with other cryptocurrencies like bitcoin or ether, with many stablecoins relying on the security, compatibility and infrastructure provided by such cryptocurrencies

5. Stablecoins will continue to see an increase in listings on more cryptoasset exchanges, and these listings will be motivated for reasons beyond reduced exposure to market volatility (e.g., algorithmic stablecoins may prove popular to list as they could attract ‘Soros-attack’ trading - and significant trading volume - aimed at breaking the automated stability peg)

6. Key near-term regulatory issues include whether stablecoins (or aspects of stablecoin systems) are in compliance with securities and money service laws in some jurisdictions
We hope you find this report interesting and informative. We look forward to sharing more of our team’s research in the future.

You can read the full report or take a look at the summary slides at blockchain.com/research.

-Blockchain Research Team

[kent47400]

The question is, is it accurate with the market that there is always a price change?
I think the answer will never be the same because with various situations like this Stable Coin cannot provide accurate answers. LOL

[Peter90]

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[Alcor]

There weren’t many Stablecoins before to choose from but now after a decade since the very first crypto, Bitcoin was created, we the cryptizens are left with many an option to choose from. But, here, let’s focus at the top 10 stable coins to look forward in 2019. Before talking about those, let’s first briefly understand the stable coins holy grail and why they are termed the same.

Before investing in any cryptocurrency, it is important to think about the features and potential of a coin in the long turn.

Check the stable coins to buy now for holding it for a long time.

I see no reason to buy stable coins and hold them for a long time. Stable coins should constantly work either as a buffer between regular currency and cryptocurrency, or simply as a means of payment. Just holding it does not make sense, because holding it does not bring any profit.
Now stable coins are developing very quickly, their number is constantly growing and they can become a serious competitor for a decentralized cryptocurrency as a means of payment.

[Senin]

After Facebook decided to issue its own stable coin Libra and it met with stiff resistance from the states of the European Union and the USA, this prompted many states to create their own national stable coin. And although we do not see any special results so far, about 70 percent of the states have already announced their intention to issue their own stable coin, which, in fact, will be digitized by their internal currency. It seems that soon we will see a boom of stable state coins.

[damsix]

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It could also be like that because there are ups and downs of trade.

Certainly in cryptocurrency there are ups and downs that are very fast.
Gold and silver trade is also the same there is always the ups and downs.
Stable Coin is also the same, only only a slight increase and decrease in price. cmiiw

[Peter90]

I see no reason to buy stable coins and hold them for a long time.
Stable coins should constantly work either as a buffer between regular currency and cryptocurrency, or simply as a means of payment. Just holding it does not make sense, because holding it does not bring any profit.

You don't see any reason to buy stablecoins because you live in a country whose national currency is relative stable (actually it's not, but they give you that impression).
If you put yourself in the shoes of people living in countries whose currencies depreciate quickly, you'll see the reason for exchanging those currency with a Stablecoin and for keeping it.

Stablecoins are money. As you rightly say, they are means of payment.
They are not there to bring profit, as money is not there to bring profit but to buy things.
(Ok, Commodity-backed stablecoins can be see ALSO as an investment, i.e. they can bring profit.
These kind of stablecoins have a double function: money and investment)