Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: MrSpasybo on October 17, 2020, 09:18:12 PM
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Despite this year’s uncertainty that has plagued the global economy, 2020 will go down as the year of the stablecoins due to the digital sector’s tremendous growth, with new developments emerging across the board. While some attribute this growth to the booming interest in decentralized finance among crypto enthusiasts, others see it as a bullish trend that confirms the inflow of fiat currency to the crypto ecosystem.
Article: Stablecoins race ahead: Fiat-backed crypto booming amid uncertainty (https://cointelegraph.com/news/stablecoins-race-ahead-fiat-backed-crypto-booming-amid-uncertainty)
It can be said that stable coin has made great developments in 2020, despite the pandemic causing the decline of the world economy. The daily transaction volume of USDT is even equal to the total transaction volume of BTC & ETH.
Do you think the cause is DeFi, is the trend of moving traditional assets to crypto assets or is it because CBDCs have become the concern of governments?
And will this very rapid development have any negative effects on the world of crypto?
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The rise of stable coins can be a good sign for the whole cryptocurrency industry. It means that more and more people and institutions are getting into cryptocurrency, and they are availing of the stability provided by stable coins to counter-balance the high volatility associated with digital assets. We know that cryptocurrencies can rise and fall in an instant so there is that need to have some buffer zone provided by stable coins. The only concern I have is that the growth of stable coins seems to be concentrated on Tether, let's see how things can balance out in the coming years.
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negative effects may not be seen at this time, but will be seen in the future. for now with this development open a bright spot for the existence of crypto itself, at least there is the possibility that crypto is legalized
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Today Stablecoins are digital currencies whose value is pegged to fiat currencies like the dollar. As Blockchain-based tokens they allow for fast transactions at low costs and are used especially by cryptocurrency traders. Today, over $10 billion in stablecoins are circulating. In our latest working paper, we analyze the influence of stablecoin issuances on the returns of major cryptocurrencies and conclude that stablecoins contribute to price discovery and market efficiency of cryptocurrencies. We find that the issuance of stablecoins follows cryptocurrency market downturns. The negative price trend stops on the day before the issuance and yields a positive abnormal return in the twenty-four hours before and after the issuance.
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Stable coins are becoming very popular and this is understandable why, because when the cryptocurrency market falls, you can hold your investments in stable coins and you will not lose anything, and therefore so many cryptocurrency companies are increasingly creating stable coins, I also want to note that stable coins are becoming more and more popular and more in demand.
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The DeFi has nothing to do with the stablecoins boom. DeFi came just the way ICO trended in the past though I think this is way better than ICO performance in the last bull run.
There were no inflow of money as the total market cap remain the same. There was rise in Usdt demand as the exchange volume has increased by 20% compared to the past ones. DeFi is booz has calm for now, I think non fungible token. NFTs is the new trend in crypto space because their demand has tremendous so far.
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I think the need for stablecoins is somewhat connected to the DeFi hype. Tokens have shown so much volatility, and while the potential for growth is a good thing, on the other side there's also a potential for extreme downtrends. Also, projects that turn out to be a scam damage the reputation of the crypto market as a whole.
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Stable coins are not new coins because currently stable coins do not have good price movements because they tend to be silent and there are not too many movements so it is difficult to get profit.
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Cryptocurrency is one of the products that will play a huge role in the economy in 2020. These include Bitcoin, ethereum and Bitcoin Cash. These currencies occupy a huge place in the economy. I think the wheel of the economy has kept moving. Because cryptocurrency markets were not damaged during the epidemic. During the epidemic I saw that these currencies prevented the destruction of the economies of different countries and I think the economies of different countries have improved. These cryptocurrencies have a special role to play in keeping the economy afloat in countries where cryptocurrencies are approved. So I think Bitcoin has kept the wheel of the economy moving, Bitcoin has had the highest amount of cash transactions, I have seen. So these coins are really good and I am very proud of them. Because I trade these coins.
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I don't really know what make it new trend. Because, stable coin is that stable coin. It always has the similar value. But if you are asking the trend, I think DeFi is now ffering the best crypto discussion and also relation. In this case, the crypto is good thing of technology, but not always the stable coin.
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I don't think it is a new crypto trend, it is already an old trend. The new trend in crypto is Defi token, many people want to buy Defi tokens because of the advantage of instant high moves of the Defi tokens. Many people got big profits from Defi tokens in the last few weeks since the significant increase in the prices.
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The rise of stable coins can be a good sign for the whole cryptocurrency industry. It means that more and more people and institutions are getting into cryptocurrency, and they are availing of the stability provided by stable coins to counter-balance the high volatility associated with digital assets. We know that cryptocurrencies can rise and fall in an instant so there is that need to have some buffer zone provided by stable coins. The only concern I have is that the growth of stable coins seems to be concentrated on Tether, let's see how things can balance out in the coming years.
The last year can be said to have been the year of private and commercial stablecoins. Next year is likely to be the year of central bank stablecoins. Although by this time there are already several digitized currencies of states, with the advent of the digital yuan, a new stage in the development of cryptocurrency will begin. For China, almost all states will seek to issue their digitized currency. This should significantly affect the use of decentralized cryptocurrency as a means of payment. There will be fierce competition between the stable coins of states and the decentralized cryptocurrency for use as a means of payment, that is, as money.
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I don't think it is a new crypto trend, it is already an old trend. The new trend in crypto is Defi token, many people want to buy Defi tokens because of the advantage of instant high moves of the Defi tokens. Many people got big profits from Defi tokens in the last few weeks since the significant increase in the prices.
yes of course stablecoins will provide many benefits, take advantage of them well.
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stable coin of choice for the traders to buy of product Defi also have adopted it as well to create a more stable coin-coin to be implemented with a combination of the stable coin but investors tend to prefer to invest in a coin that has a value that valuable to take advantage big profit.
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I don't think this is a new trend, the current trend is about DeFi but I see it is still related. In these conditions, people want to keep their money safe and without losing anything in crypto and stable coins are the right place for that.
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I agree. since the value of usdt isn't like the others which are volatile showing great risk people would love to find out what makes them safer most specially during time of pandemic.
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I think in the last quarter of 2019 the Stablecoins are already showing some impressive performance. The Goldbacked Stablecoins and Fiat backed Stablecoins are dominant in the race. But in terms on legality I think Tether's USDT has a serious problem to tackle, IMO, Tether needs to clarify it because even me I'm also doubting If it was really backed by Fiat or dollar with a 1-1 ratio, Imagine it has billions of USDT in circulation thats why Tether should clear and clarify this first so that users won't doubting it anymore.
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The requirement for stablecoins is to some associated to the DeFi buildup. Coins have appeared so much instability and whereas the potential for development could be a great thing, on the other side there's too potential for extraordinary downtrends.
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THE new trend looks like a struggle between Bitcoin and Usdt. Usdt and usdc remains the steady and most supportive stablecoin. apart from them. the rest have little or No volume and value to the market. Market dominance remains in the hands of BTC and i don't see Usdt challenging it. it might take a long time.
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What do people gain by holding stable coins? Stable coins, as I know, have fixed value. So how do people benefit by holding stable coins? This is something I wish to know.
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What do people gain by holding stable coins? Stable coins, as I know, have fixed value. So how do people benefit by holding stable coins? This is something I wish to know.
Of course, stablecoins only reflect the price of the common currencies they are backed by and cannot bring profit to their owners. Stable coins are used as a buffer between regular currency and cryptocurrency. This makes it very easy to use cryptocurrency. Stable coins are also convenient to use as a means of payment.
Recently stablecoins have played a very large role both in cryptocurrency and in the global financial system in general, since they combine the advantages of conventional currencies and cryptocurrencies.
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Stablecoin is only needed in order to quickly buy a volatile cryptocurrency. Keeping your money in USDT seems silly to me. You can also store them in a regular paper dollar. If I buy USDT, it is only for the subsequent purchase of cryptocurrency.(BTC, ETH)
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USDT is leading the stablecoin race and have been doing really well. This will minimize the loss which could be incurred due to volitality of cryptocurrency.
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For me stablecoins are only good for payments and transfers. As an investor they can be useful when you think that your coin has reached its peak price and it will reverse, jumping in stablecoin around peak can be really profitable.
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With this stable coin, indeed the government is glancing a little and showing attention to crypto. Because after all the existence of this stable coin, it is able to make many people believe in investing in crypto. So that many people end up investing. Of course this is a very good progress.
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I allocate approximately a quarter of my crypto assets to stable coins, more precisely USDT, because I know that I also need an asset that does not fluctuate in price.
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The rise in stablecoins can be partly attributed to the DeFi boom, especially those that are lending/borrowing DApps. People borrow stablecoin using their other digital assets as collateral in order to unlock some opportunities without losing their crypto portfolio.
However, some projects issuing their own stablecoin need not issue new stablecoins because there are established ones on the same blockchain that they are leveraging. It's just a case of duplication imo.
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Well, many projects launched stable coins currently. I think it is not a new trend, there were many stable coins already. It may follow USDT to have other stable coins. SO, people have some options once they want stable coins.
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I think in the last quarter of 2019 the Stablecoins are already showing some impressive performance. The Goldbacked Stablecoins and Fiat backed Stablecoins are dominant in the race. But in terms on legality I think Tether's USDT has a serious problem to tackle, IMO, Tether needs to clarify it because even me I'm also doubting If it was really backed by Fiat or dollar with a 1-1 ratio, Imagine it has billions of USDT in circulation thats why Tether should clear and clarify this first so that users won't doubting it anymore.
I also think Tether and its users would benefit from some more clarity and transparency, I have my doubts about it as it is right now, too.
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It think this has brought some form of stability on crypto. Early, people have lost monies because of the volatility of cryptocurrency. Now they have quick suitor that can help to balance price.
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Despite this year’s uncertainty that has plagued the global economy, 2020 will go down as the year of the stablecoins due to the digital sector’s tremendous growth, with new developments emerging across the board. While some attribute this growth to the booming interest in decentralized finance among crypto enthusiasts, others see it as a bullish trend that confirms the inflow of fiat currency to the crypto ecosystem.
Article: Stablecoins race ahead: Fiat-backed crypto booming amid uncertainty (https://cointelegraph.com/news/stablecoins-race-ahead-fiat-backed-crypto-booming-amid-uncertainty)
It can be said that stable coin has made great developments in 2020, despite the pandemic causing the decline of the world economy. The daily transaction volume of USDT is even equal to the total transaction volume of BTC & ETH.
Do you think the cause is DeFi, is the trend of moving traditional assets to crypto assets or is it because CBDCs have become the concern of governments?
And will this very rapid development have any negative effects on the world of crypto?
Firstly, the cbdc coming in will not affect crytop in any way but I think it enhance further crypto development, awareness, popularity and world wide adoption in few years to come.
In addition, stable coin growth is not because of Defi projects neither the CBDCs growing concern of governments.
I think that the hour has come that the nation's of the world has realize the advantages of the Blockchian technology that brought in crypto, plus the impact of the stablecoins in the ecosystem. Obviously, more innovation are coming and crypto will definitely be the centre of the current technological invention.
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I do not think there are any where in the crypto currency scene where there are bias towards stablecoin. Everyone treats stablecoin as the best resort, not the final resort. Which means as a trader, hodler, or investor; you have the opportunity to use stable coins to the best of your ability.
Functions such as:
1. Stablecoins can be used to preserve and maintain the value of your portfolio on the longurn.
2. Stablecoins can help you switch trades easily between btc pairs or eth pairs.
And lots more, whats important is to stick to the best amongst the pack of stable coins.
Always do your own research
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The rapid growth and development of stable coins is actually a big plus to the general crypto community. I would say institutional money are for now flowing more into the stable coins because of their design by protocol and the fact that institutional investors are going for a safe landing spot because spreading their portfolios as the gain more confidence and familiarity with the tech.
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In my opinion, a stable coin is good to be used for pairing in the market. But for holding, it is not enough. So far, there are several stable coins and we need to find the trusted one. However, I personally choose not a stable one because it can relate to our movement.
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I think the government is starting to look at this. When there is an economic downturn, many people think of finding a way out. And the best way out is investing in something that yields fast, like crypto.
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I think that's not true because if you look at the conditions, stablecoins should not be trending because that will only make it difficult for us to make a profit.
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I think that's not true because if you look at the conditions, stablecoins should not be trending because that will only make it difficult for us to make a profit.
I totally agree with what you said.
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I think that's not true because if you look at the conditions, stablecoins should not be trending because that will only make it difficult for us to make a profit.
But considering the volatile nature of the crypto market, stable coins are a good assets to help traders maintain their profits. Those with deep pockets are making profit from the slight changes in stable currencies price and average traders are hedging on stable currencies.
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I think the very reason of those who were buying usdt are new but wise investors. They understand that cryptocurrency is volatile and if they want to make sure that their fund is safe from this risky manner of crypto while finding a good project to invest they should have to have a good choice and that is what USSR all about because it is a stable coin.
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I don't think this is a new trend, the current trend is about DeFi but I see it is still related. In these conditions, people want to keep their money safe and without losing anything in crypto and stable coins are the right place for that.
DeFi a temporary hype maybe. It wouldn't everlasting. But USDT, PAX, USD will be ever lasting till cryptocurrency lasting. The digital yuan will be a stable coins which destroy American dollar.
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Cryptocurrency is one of the products that will play a huge role in the economy in 2020. These include Bitcoin, ethereum and Bitcoin Cash. These currencies occupy a huge place in the economy. I think the wheel of the economy has kept moving. Because cryptocurrency markets were not damaged during the epidemic. During the epidemic I saw that these currencies prevented the destruction of the economies of different countries and I think the economies of different countries have improved. These cryptocurrencies have a special role to play in keeping the economy afloat in countries where cryptocurrencies are approved. So I think Bitcoin has kept the wheel of the economy moving, Bitcoin has had the highest amount of cash transactions, I have seen. So these coins are really good and I am very proud of them. Because I trade these coins.
Your're right, these coins have a significant place in the market. Stablecoins also have potential in my opinion, but they are considered concerning from a monetary policy standpoint.
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Yeah. In all the turbulence of 2020, this year has relatively been kind to cryptocurrencies unlike the last 2 years infamously known as the Crypto Winter where coins were biting the dust and many projects frozen
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Where a pandemic is very influential on the economy, this stable coin is indeed the right choice. So many people do not waste the opportunity to invest in stable coins.
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Stable coin makes crypto users easily store their crypto assets without worrying about fluctuating prices, if you look at the current trading volume of stable coins, such as USDT is in the top 5 CMC rankings which means crypto users have started to find ways to keep their assets after getting profit from trading or sending money to another country in digital form to reduce costs if they make a transfer between banks that have a higher price for fees on each transaction
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Despite this year’s uncertainty that has plagued the global economy, 2020 will go down as the year of the stablecoins due to the digital sector’s tremendous growth, with new developments emerging across the board. While some attribute this growth to the booming interest in decentralized finance among crypto enthusiasts, others see it as a bullish trend that confirms the inflow of fiat currency to the crypto ecosystem.
Article: Stablecoins race ahead: Fiat-backed crypto booming amid uncertainty (https://cointelegraph.com/news/stablecoins-race-ahead-fiat-backed-crypto-booming-amid-uncertainty)
It can be said that stable coin has made great developments in 2020, despite the pandemic causing the decline of the world economy. The daily transaction volume of USDT is even equal to the total transaction volume of BTC & ETH.
Do you think the cause is DeFi, is the trend of moving traditional assets to crypto assets or is it because CBDCs have become the concern of governments?
And will this very rapid development have any negative effects on the world of crypto?
There are already so many of them and more coming. But I think this is good for crypto because before many don't want crypto because of its volatility. So now we have a stable coin that can be used for any kind of payment system. This will help people to adopt crypto more easily as they desire.
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stable coin of choice for the traders to buy of product Defi also have adopted it as well to create a more stable coin-coin to be implemented with a combination of the stable coin but investors tend to prefer to invest in a coin that has a value that valuable to take advantage big profit.
As long as there is stable coin demand, more will be minted. My only fear is the regulation body. Currently, Usdt the largest stable coin on market is roughly estimated to be 17 billion, do we know the future?
DeFi has nothing to with stable coin, traders and investors need stability to avoid volatility, they will keep buying so far they need more.
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One of the hindrances to mainstream cryptocurrency adoption is price volatility, as these assets are freely traded in the open market without central administrators tasked with maintaining price stability. The anticipation of potential losses and gains has hindered cryptocurrency’s use as a medium of exchange. Stablecoins, however, are cryptocurrencies designed to maintain a stable value over time, making them ideal for commercial transactions.
The introduction of stablecoins in the cryptocurrency market ushered in a new wave of liquidity, as exchanges were able to provide trading pairs with tokens representing traditional fiat currencies.
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negative effects may not be seen at this time, but will be seen in the future. for now with this development open a bright spot for the existence of crypto itself, at least there is the possibility that crypto is legalized
Stable coins play both positive and negative roles for decentralized cryptocurrency at the same time. Stable coins are very helpful in dealing with cryptocurrencies, but at the same time, they are likely to compete with cryptocurrencies when used as a means of payment.
Digitized currencies of states, such as the digitized yuan, are especially dangerous in this respect for cryptocurrencies. The growth of the cryptocurrency market is due to many reasons, including the emergence of DeFi projects. It is unlikely that we can now dwell on only one of them as the main one.
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~snip~
Stablecoins, however, are cryptocurrencies designed to maintain a stable value over time, making them ideal for commercial transactions.
If losses are often obtained, then actually the person is still a beginner, it is better to learn first before making real trades,
don't be too hasty, as long as the bull market trend doesn't look strong, Altcoin is still sideways and you can learn to trade first.
~snip~
The introduction of stablecoins in the cryptocurrency market ushered in a new wave of liquidity, as exchanges were able to provide trading pairs with tokens representing traditional fiat currencies.
Stable coins are created to defend the value of your assets from the volatility of the cryptocurrency space,
before there was a stable coin the trader withdrew his assets to avoid correction, now traders do not need to do that because they can directly convert them into stable coins.
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It is a common misconception that fiat-based stablecoin prices never vary relative to the underlying currency (usually the dollar). This is not true. They are pegged to a fixed unit, but in reality their market prices fluctuate around that level.
This allows for arbitrage opportunities in which investors can mint a stablecoin for $1 and sell it on the market for $1.0003, for example. Multiplied by millions, this can generate a handsome profit. Selling pressure will bring the stablecoin value down towards its pegged price.
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Indeed this stable coin is making a new color in crypto. Many people are no longer worried about investing in crypto. And this is starting to attract government attention to the crypto world.
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It is a common misconception that fiat-based stablecoin prices never vary relative to the underlying currency (usually the dollar). This is not true. They are pegged to a fixed unit, but in reality their market prices fluctuate around that level.
This allows for arbitrage opportunities in which investors can mint a stablecoin for $1 and sell it on the market for $1.0003, for example. Multiplied by millions, this can generate a handsome profit. Selling pressure will bring the stablecoin value down towards its pegged price.
It really is. From the point of view of the owner of a stablecoin or big whales, these small price fluctuations can be played and earned, but the amounts are still insignificant compared to the possibility of cryptocurrencies. In my opinion, these fluctuations have no practical meaning for ordinary users.
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I do not think there are any where in the crypto currency scene where there are bias towards stablecoin. Everyone treats stablecoin as the best resort, not the final resort. Which means as a trader, hodler, or investor; you have the opportunity to use stable coins to the best of your ability.
Functions such as:
1. Stablecoins can be used to preserve and maintain the value of your portfolio on the longurn.
2. Stablecoins can help you switch trades easily between btc pairs or eth pairs.
And lots more, whats important is to stick to the best amongst the pack of stable coins.
Always do your own research
I agree with you, apart from the 2 things that you mentioned above, I personally think many investors keep their assets in the form of stablecoins because they are almost the same value as banknotes and subsequently eliminate withdrawal fees from the exchange, so that their assets will be completely intact. Maybe that's what made stablecoins such a popular coin.