Fiat-Backed Stablecoins ⁠— Attempt to Take the Best of Both Worlds

[starwill 456]

Fiat backed stablecoins are here to stay, but what makes them so stable and desires?

Stablecoins attempt to be fiat currencies among cryptos. They can be a medium of exchange, a means of storing value and a unit of account. Unlike other digital coins, stablecoins are tied to some kind of stable asset — such as the United States dollar, euro or even gold. Linking to such assets confirms the coin’s stability and mitigating the volatility of cryptocurrencies.

With this type of a token, an equal amount of fiat currency should be stored by the issuing company to back the value of the token. The owner of this token should be able to exchange it for cash at any time

 

[Elton23 202]

I find such coins boring. No volatility which for some is good, but for me, not great for daily trading. 

[Nicecrypto 543]

On 10/7/2019 at 7:38 AM, Simeon4real said:

Stable coins plays a vital role for the crypto community. Before we couldn't take advantage of Bitcoin's volatility. But thanks to USDT, Paxos and others, We can now do that. If used properly, It can be an added edge especially for traders. 

True, I think the stable coins have brought a huge relief to some people in some region of the crypto trade because some crypto traders might not have access to exchanges where they would have been able to trade in Fiats but with stable coins now available in most exchanges, this is really a good one.

[Crypto123 0]

Stablecoins are really similar to the dollar like USDT for example which is also called the digital dollar this token has a fixed value and is used in most exchanges as the base currency in the major pairs on most exchanges.

[Opinder 1310]

I think these stablecoins are best alternatives of fiat currencies. Because we always need a stable currency to store our value. Normaly we use fiat currency to save money but now stable coins can be used. They are important for holding money to invest in future.

[guatazoo 7150]

As the digiatlurency tech is inevitable, i think countries should create crypto backed by their local currency.

[Olibafhasder 14]

Fiat currencies are really important for trading because in some countries currency trading is free

[Win 1015]

There is a lot of company that are now making thier way  to stabilize some crypto currency.like the ripple even such thing did not happen on a right way they are trying thier best to do it.sad to say it couse the price to decrease

[BTC Future 3946]

The stable coins we have today won't be needed soon and I forsee a major shift into government issued digital currencies that will be adopted by exchanges. I don't see the US exchanges keep using Tether and USDC for far too long if a US central bank digital coin is issued in the next couple of years. It is also quite possible that we will see exchanges creating cryptocurrency pairs with the digital yuan, which is soon to be released.

[Ayush Singh 1175]

Its a great news for all the crypto users that stable coin is back with impressive services as it allows to store for a long term and also gives you opportunity to do activities with that for generating income it will take some time but can be succeeded.

[Rickso 768]

On 10/7/2019 at 8:32 AM, starwill said:

Fiat backed stablecoins are here to stay, but what makes them so stable and desires?

Stablecoins attempt to be fiat currencies among cryptos. They can be a medium of exchange, a means of storing value and a unit of account. Unlike other digital coins, stablecoins are tied to some kind of stable asset — such as the United States dollar, euro or even gold. Linking to such assets confirms the coin’s stability and mitigating the volatility of cryptocurrencies.

With this type of a token, an equal amount of fiat currency should be stored by the issuing company to back the value of the token. The owner of this token should be able to exchange it for cash at any time

 

you made a good explanation about stablecoins, so you should also say why are so important in this market. they are important because you can exchange coins with something stable without exchanging them for fiat every time and so you can save a lot of money in fees

[Brushless4500KV 4214]

Since stable coins were developed with the concept of stability in mind, they should be backed with assets that are themselves stable enough to support these coins. Stable coins may be backed by fiat currencies, Gold, oil and some metals. If you look more carefully, you will see that the price of gold and oil are not always steady. Only fiat currencies have really stable values. Therefore, if you want to choose stable coins, choose the ones that are backed by USD because USD is stronger than other assets.

[Upright 2688]

On 10/7/2019 at 7:47 AM, Elton23 said:

I find such coins boring. No volatility which for some is good, but for me, not great for daily trading. 

This of The, stablecoins have some diverse use that when understood,as on how to use it, it can really beneficial, as when looking at when a coin as those of volatility trends, when the price falls to down low guages having to exchange your coin before this crash to stablecoins can be a very good and unique attempt to actually store your value

[Saj555 2250]

Stablecoins plays a great role in the world of crypto. Because the coins actually  has maintained the expenditure of the market. At first it was not easy to grow up only with the bitcoins. But now after USDT or paxos was created ,it seems quite relevant. But etheruem network has maintained to keep a lot of stable coins in their network. It has an impressive role in the world of crypto. 

[magd 5231]

Fiat-backed currencies such as the digital dollar or the ruble coming from the Russian ruble have a greater chance of stability in the crypto currency market and reaching a stage of stability, but I expect there will be few restrictions that central banks will place on these currencies

[bitcoin-shark 1928]

I really like stablecoin Pity that have not be invented before they are a great way to get out of Day trading in order to keep your daily earnings, My favorites are tether and dai, I am making nice percentages of staking with them, but I also want to try some gold backed stablecoin as it is ekon

[Brand1 1336]

I do not like stable currencies because they are not very profitable unlike cryptocurrencies that fluctuate continuously but stable currencies are useful and help us to convert our cryptocurrencies into stable currencies so that we can keep the value of the currency and there are many people who prefer this currency

[Whited35 15285]

Generally stablecoin are backed by stable fiat currencies. If you locate USDT, it has generally a target value equivalent to USD in the international exchange markets. Stable currencies really have the important roles in cryptocurrency markets in the case if we are more concerned about the losses due to extreme market volatility of some coins like bitcoin while trading them on the exchange. 

Edited June 1, 2020 by Whited35

[Yomose 3704]

4 hours ago, Whited35 said:

Generally stablecoin are backed by stable fiat currencies.

@Whited35 No, but some countries want to create their own crypto coin which people believe will be stable. 

4 hours ago, Whited35 said:

If you locate USDT, it has generally a target value equivalent to USD in the international exchange markets.

Usdt is backed by ethereum platform. 

 

In the last G20 meeting, they even talked about how stable cryptocurrencies  will affect the world monetary system, but confused the amount existing now can not have any significant effect. 

[Neoneonovich 116]

On 10/7/2019 at 9:32 AM, starwill said:

Fiat backed stablecoins are here to stay, but what makes them so stable and desires?

Stablecoins attempt to be fiat currencies among cryptos. They can be a medium of exchange, a means of storing value and a unit of account. Unlike other digital coins, stablecoins are tied to some kind of stable asset — such as the United States dollar, euro or even gold. Linking to such assets confirms the coin’s stability and mitigating the volatility of cryptocurrencies.

With this type of a token, an equal amount of fiat currency should be stored by the issuing company to back the value of the token. The owner of this token should be able to exchange it for cash at any time

 

It is difficult to disagree with you here, because if you take into account the fact that representatives of stable coins can simply print yusdt, then they feel uncomfortable, and this can undermine confidence in the crypto currencies themselves

[Teminali69 1081]

This is just a plan of the government to try and take over the crypto world and take advantage of it like you said, because they can not play with decentralized coins.

[tienda 8776]

Stable coin it is like fiat money used as digital currency, but since the creation of stable coin, the majority of people use stable coin as intermediary between cryptocurrencies and fiat money. The price value is almost equivalent to dollar, and the stable coin for some people around the world is the most preferred for exchange vs their local currency.

[TimopheyKa 3900]

I believe that stable coins are extremely good, and sometimes, they can show us quite high prices. For example, we should pay attention to the fact that they are also relevant in the market, and we can invest in them, while not being afraid of losing any part of the funds, and sometimes the losses are even minimal. Also with the commission, and for withdrawal, we do not lose much!

[Sarahden111 1231]

This type of currency linked to fixed and paper financial assets has made many countries think the same way and launch their local currency on their own blockchain. Thus, it achieves profits from the use of the blockchain, reduces fraud, prevents fraud, and reduces significant financial burdens on it compared to its fiat currencies

[Abdulrahman3 1252]

I do not know why the owners of stable currencies are trying to convert their digital currency into monetary currency, knowing full well that the future is for digital currencies and not for monetary currencies, and today the first digital currency has exceeded its value of 40 thousand dollars, and this number has not reached any monetary currency throughout history.