The impact of stablecoins on the market

[Peter90]

Stablecoins are increasingly used on public blockchains and have become the primary means of transaction settlement. Despite the relatively stable usage of major cryptocurrencies, the value of transactions in stable coins accounts for the majority of settlements on the blockchain.

What does it mean?
Can you make an example of a cryptocurrency being used as a transaction settlement?

I don't know if this has been answered, if it has, then please just ignore, but if you haven't, then I did say that this is very simple, using cryptocurrency as transaction settlement simply means using crypto to pay for goods and services.
I believe this is not something that is too complex to understand

Well, apparently it is, because you didn't understand either what he meant  : If - as you say - "transaction settlement simply means using crypto to pay for goods and services", then it clearly doesn't make any sense to write "stablecoins have become the primary means of transaction settlement", as the primary means of transaction settlement in our world are still fiat currencies.


English is not his native language so he formulated himself not clearly, no problem, I was just curious to know what he wanted to say.

I like a lot that in this forum there are so many people whose native language is not English.
In the gold forums that I'm a member of everybody speaks perfect English so usually I stood out like this 

[Peter90]

I came to know that Tether has another coin which is XAUt and according to them, this is fully backed by physical gold. They claim that they have 7643.71 KG gold which worth $502,719,255 at this moment. This is interesting. You can find more here https://gold.tether.to/

Hi LB, I just opened a thread about T-Gold in the Stablecoins section of the forum

Tether Gold (XAUt)

I took very quickly a look at their website.
The first thing that I look for when I look into a gold-backed stablecoin is auditing. Who checks out whether the gold backing the coins is there. How can we sure that those 7,6 tons of gold are there.
I can't find any indication of audits...

[kent47400]

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Hi Peter, you are very smart, have a lot of knowledge about cryptocurrency and your posts are also very useful for others.
But I have some questions about stable coins and gold.

1. In your opinion, does this stable coin have a big influence on cryptocurrency ? explain why ?
2. You provide information about Stable Gold, which was developed by Tether, is the price of gold really stable ?
3. In your opinion, is it better to trade with the stable coin pair USDTxETH or trade with Bitcoin BTCxETH ?

I look forward to your answer soon because your answer will be my best choice for trading in cryptocurrency.

[Carbitcoin]

the use of stablecoins helps combat the volatility and unpredictability of the crypto market. These digital assets combine the best of the worlds of crypto and fiat currencies

[Peter90]

Hi Peter, you are very smart, have a lot of knowledge about cryptocurrency and your posts are also very useful for others.
But I have some questions about stable coins and gold.

1. In your opinion, does this stable coin have a big influence on cryptocurrency ? explain why ?
2. You provide information about Stable Gold, which was developed by Tether, is the price of gold really stable ?
3. In your opinion, is it better to trade with the stable coin pair USDTxETH or trade with Bitcoin BTCxETH ?

I look forward to your answer soon because your answer will be my best choice for trading in cryptocurrency.

Hi Kent,
you ask me about trading advice. You know that I love you, but I prefer not take this responsibility 
but there are users much more knowledgeable than me here, like MrSpasybo. He even has his own channels on telegram and on YouTube.
The only problem is he speaks Vietnamese and I don't understand a word 


I'm not knowledgeable about cryptos. I come from the gold world and as you can see from my signature, I participate to the affiliate program of kinesis, a gold-backed stablecoin, so I only know a little about stablecoins and in particular about gold-backed stablecoins.


Tether Gold, they don't have independent audits, so how can we be sure that the gold backing their coins is there? Kinesis' gold gets audited each 4 months, the last audit was in October. No institutional investor will ever buy a stablecoin if the assets backing those stablecoins are not regularly audited by an independent party.


USDT is backed by assets denominated in US dollar.
I have no confidence in the US dollar, I have no confidence in assets denominated in US dollar, and I have no confidence in Tether, so not with my money 

[Peter90]

is the price of gold really stable ?

Take 5 minutes and watch this chart Kent.
What do you think?





Is the price of gold really stable? is the wrong question.

The right question is Is the value of fiat currencies (like $) really stable?

[MrSpasybo]

but there are users much more knowledgeable than me here, like MrSpasybo. He even has his own channels on telegram and on YouTube.
The only problem is he speaks Vietnamese and I don't understand a word 


I'm not knowledgeable about cryptos. I come from the gold world and as you can see from my signature, I participate to the affiliate program of kinesis, a gold-backed stablecoin, so I only know a little about stablecoins and in particular about gold-backed stablecoins.

I'm just a crypto fan and try my hand at trading, I don't have much experience or success with this market ^^
Gold-backed stablecoin is a good idea, but needs the support of investors in market for it to account for significant portion of capitalization, appearing more in investor discussions. Currently, we only hear about USD-backed stablecoin, which will be one of the competitors of Gold-backed stablecoin.

[masudginanjar]

Cryptocurrencies without coins are as stable as spinach without salt.
Stable coins are needed to support all cryptocurrency assets, like salt to provide a salty taste to spinach.
We cannot let go of the situation in this world if we need something stable, like our life may need economic stability rather than unclear ups and downs.
The biggest impact for stable coins is that they are able to continue to support cryptocurrency, such as Bitcoin which is supported by USDT, so there is so much USDT in circulation to support the price of Bitcoin.
This perceptions only in my place , i don't know if this rules confidence in your place , always DWYOR !

[Peter90]

Cryptocurrencies without coins are as stable as spinach without salt.
Stable coins are needed to support all cryptocurrency assets, like salt to provide a salty taste to spinach.

The biggest impact for stable coins is that they are able to continue to support cryptocurrency, such as Bitcoin which is supported by USDT, so there is so much USDT in circulation to support the price of Bitcoin.

I like the metaphor with spinach and salt! ... but next time use cheese instead of salt 

The main task of Stablecoins is to serve cryptos you say.
Yes, from the point of view of a trader - and this is the Cryptocurrency trading section of the forum - that's correct.

Although from the point of view of the economy in general, stablecoins can serve the ordinary people even if they don't use cryptocurrency.

[LUCKMCFLY]

is the price of gold really stable ?

Take 5 minutes and watch this chart Kent.
What do you think?





Is the price of gold really stable? is the wrong question.

The right question is Is the value of fiat currencies (like $) really stable?

What happened is that gold is a safe haven for me , it is the only asset that has gotten Countries in crisis out of trouble and it is the most accepted to be the only one that has the power to do so, for its support and for Everyone. which Means , it is said that the USD is Backed by gold, but that is something that I do not believe , because honestly the inflation so high that has been reported in recent years , well , it is something that does not demonstrate it, however when we talk about the gold, and another thing, is not that it is stable, if it has any type of movement, it is just that its value is almost always maintained over time, sometimes low , but not that much, but in times of wars and difficult situations ciiles is very useful.

Stablecoins are different, they are currencies that can be taken as stable if they were fully backed by fiat, but this is not the case , the most Common case is the USDT , Although for many it is taken as stable, but I Consider that everything has its own way of being called. , it is a way to compare the Value of Bitcoin and other Cryptocurrencies.

[I-Bit]

the use of stablecoins helps combat the volatility and unpredictability of the crypto market.

Although they are called by stable coins, but the prices of stable coins also change sometimes. They don't fully stable and easy to predict, the trend of crypto market can change them. You must remember that the red market often makes the stablecoins to have higher prices. But the green market can make their prices to drop quite significantly. In my opinion, there are only not so volatile as common crypto coins.

[Dr.Bitcoin_Strange]

In fact, the use of native assets like Bitcoin and Ether seems to be decreasing, while the use of stablecoins continues to grow.

Overall, this trend shows that the cryptocurrency and blockchain ecosystem is very active and evolving. It also serves as a reminder that as technology and user needs change, we need to be flexible and adapt to new trends and constantly evaluate the role and place of cryptocurrencies in the future.

Are you very sure about this information? There is no data to back up this claim, so I assume it to be false. Despite the volatile nature of Bitcoin, there are still many adoptions compared to some stable coins out there. Some investors who are short-term traders of Bitcoin only use it as a hedge to liquidity and volatility. Apart from that, there are so many Bitcoin investors, more than you can see for some stable coin, and perhaps a lot of those centralized projects that really pose a risk of contract-free, and that's what most people tend to avoid.

[EthereumDev_]

the use of stablecoins helps combat the volatility and unpredictability of the crypto market.

Although they are called by stable coins, but the prices of stable coins also change sometimes. They don't fully stable and easy to predict, the trend of crypto market can change them. You must remember that the red market often makes the stablecoins to have higher prices. But the green market can make their prices to drop quite significantly. In my opinion, there are only not so volatile as common crypto coins.

In my opinion, stablecoins only exist in USDT, while for other cryptocurrencies, the price will never be stable and has very scary price fluctuations because no one can guarantee profits. At least with unstable movements like that, they must be able to be exploited to seek profits that can be obtained. you get from exploiting the difference between the price you buy and the price you sell.

[debra]

In my opinion, stablecoins only exist in USDT, while for other cryptocurrencies, the price will never be stable and has very scary price fluctuations because no one can guarantee profits. At least with unstable movements like that, they must be able to be exploited to seek profits that can be obtained. you get from exploiting the difference between the price you buy and the price you sell.

What it only exists in USDT?
We have many stable coins https://www.coingecko.com/id/categories/stablecoins.

No doubt that the stable coins can have fluctuation. But the price change seems not very high.
I agree that no people can guarantee the profits. Even if we invest in stable coins, there is no guarantee for exact profits.
The profits will depend on many factors, we must understand the factors.

[Peter90]

What happened is that gold is a safe haven for me , it is the only asset that has gotten Countries in crisis out of trouble and it is the most accepted to be the only one that has the power to do so, for its support and for Everyone. which Means , it is said that the USD is Backed by gold, but that is something that I do not believe , because honestly the inflation so high that has been reported in recent years , well , it is something that does not demonstrate it, however when we talk about the gold, and another thing, is not that it is stable, if it has any type of movement, it is just that its value is almost always maintained over time, sometimes low , but not that much, but in times of wars and difficult situations ciiles is very useful.

Agree 100% 

Stablecoins are different, they are currencies that can be taken as stable if they were fully backed by fiat, but this is not the case , the most Common case is the USDT , Although for many it is taken as stable, but I Consider that everything has its own way of being called. , it is a way to compare the Value of Bitcoin and other Cryptocurrencies.

Agree 50%  : you forgot gold-backed stablecoins.

As long as
a) they are backed by gold, and
b) they give title of ownership of that gold,
there is no difference between owning gold through gold-backed stablecoins and owning gold through other ways.