2 ms·
Without stablecoins, people that want to cash out at a certain price will be cashing out to fiat, which generally is not a seamless process and requires stronge
by fastball 5y ago
Without stablecoins, people that want to cash out at a certain price will be cashing out to fiat, which generally is not a seamless process and requires stronger KYC, etc.
With a stablecoin like Tether, you have people constantly "cashing out" by just trading their BTC/ETH/etc for Tether. It is much easier to go back and forth between some "hard"-dollar value (scare quotes due to the question around how "hard" Tether actually is) and cryptos, and therefore encourages more trading. Long story short – Tether reduces the friction of certain trades, which obviously is going to make those trades more common.
- gruez 5y ago> Without stablecoins, people that want to cash out at a certain price will be cashing out to fiat, which generally is not a seamless process and requires stronger KYC, etc. Are we talking about whales or someone holding a bitcoin or two? Trading/withdraw limits at non-USDT exchanges (eg. coinbase/kraken/gemini) are quite generous, and you'd only be running into issues if you're selling several bitcoins per day. As a concrete example, kraken has a $500k daily withdraw limit for their "Intermediate" account.
- pests 5y agoEveryone I know trades in stable coins. It's the safest to park overnight or to keep coins in when you don't want to be exposed to crypto. Most exchanges do not have true USD. Coinbase and binance yes, but only because they do the KYC work. Anywhere else like Probit, KuCoin, any DeFi - there will only be stable coins.