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Author Topic: Stable coin: new crypto trend?  (Read 8455 times)

Offline Gurujebs

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Re: Stable coin: new crypto trend?
« Reply #45 on: November 09, 2020, 05:23:55 PM »
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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Re: Stable coin: new crypto trend?
« Reply #45 on: November 09, 2020, 05:23:55 PM »

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Re: Stable coin: new crypto trend?
« Reply #46 on: November 09, 2020, 05:27:35 PM »
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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Re: Stable coin: new crypto trend?
« Reply #47 on: November 09, 2020, 06:21:23 PM »
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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Re: Stable coin: new crypto trend?
« Reply #48 on: November 10, 2020, 01:47:15 AM »
~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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Re: Stable coin: new crypto trend?
« Reply #49 on: November 15, 2020, 12:29:00 PM »
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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Offline expander

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Re: Stable coin: new crypto trend?
« Reply #50 on: November 15, 2020, 01:12:18 PM »
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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Re: Stable coin: new crypto trend?
« Reply #51 on: November 16, 2020, 05:07:40 AM »
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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Re: Stable coin: new crypto trend?
« Reply #51 on: November 16, 2020, 05:07:40 AM »


Offline KKH84

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Re: Stable coin: new crypto trend?
« Reply #52 on: November 16, 2020, 06:01:28 AM »
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.

 

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