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Easier to trade, no issues with tax&bank issues, and a lot of crypto exchanges charge to convert from crypto -> cash, whereas crypto -> crypto(stablecoin) is us

Easier to trade, no issues with tax&bank issues, and a lot of crypto exchanges charge to convert from crypto -> cash, whereas crypto -> crypto(stablecoin) is usually just exchange fees, less than the USD charge.

TekMol 4y ago
Ok, I understand that a stablecoin it is easier to handle than the dollar. But who is doing it? What is the use case?
- pvarangot 4y ago
  Trading. Quick arbitrage, day trading, pump and dumps, leverage. The same thing you can do by having dollars on your stock trading account you usually need coins on your crypto account and it would be crazy to have the volatile ones.
  - TekMol 4y ago
    So crypto traders hold $150B of dollar denominated stable coins at the moment?
    - tornato7 4y ago
      With the crypto market cap at $1300B that sounds pretty reasonable to have 11-12% cash on hand
      - FireBeyond 4y ago
        If only Tether and similar could show something, anything, an audit, that shows anything close to this. I almost typed audit-like. But I remembered they've pulled that shit before. "Attestations of balances" mean fuck-all when even back when they were denying the links between Bitfinex and Tether, the same people were countersigning loans between the two for both parties. Oh, they did claim that they had had an audit done. But they couldn't release it to the public "because it was in Mandarin". I very very very much doubt that 11-12% cash is in anyone's hand.
        xur17 4y ago
        > If only Tether and similar could show something, anything, an audit, that shows anything close to this. Tether isn't the only stablecoin. USDC, GUSD, DAI, LUSD, etc all have either attestations / audit reports (that are actually legitimate) or are overcollateralized with assets that can be seen on chain.
    - nostrademons 4y ago
      Not that unreasonable. The total number of crypto traders globally is estimated at between 300M [1][2] (note: close to the population of the U.S.) $150B is an average of $500/user held as stablecoins, which doesn't seem that far off. [1] https://triple-a.io/crypto-ownership/ https://triple-a.io/crypto-ownership/ [2] https://fortunly.com/statistics/cryptocurrency-statistics/#gref https://fortunly.com/statistics/cryptocurrency-statistics/#g...
- quickthrower2 4y ago
  Traders and tax evaders. With stablecoins you can trade on decentralised smart contracts, and they even allow something called flash loans where you borrow the stablecoin, trade it for profit and then pay it back in one rollbackable transaction! Also there are many high yield investment schemes based on holding stablecoins.
jen729w 4y ago
> no issues with tax&bank issues Sure about that bit? This may be the perception – that holding your assets in 'the crypto system' avoids tax issues – but the taxman will disagree. Swapping $BTC for $USDC or whatever your tether of choice is is a 'taxable event'. You've sold one security in exchange for another. It doesn't matter that they're both crypto. Now, it might be harder for the taxman to detect this event, which is a different thing.
- krzyk 4y ago
  You mean taxable for US tax office? In my country it is not taxable, only exchange to fiat currency is. (and this is explicitly mentioned).
  - lottin 4y ago
    If this is true, it simply means your tax code has a giant loophole that allows people avoid paying tax on capital gains by simply swapping an asset for another.
    - adnzzzzZ 4y ago
      You still have to pay taxes when you convert back to fiat though. And eventually you have to do this because you don't want a significant portion of your wealth in stablecoins that might collapse overnight.
    - sokoloff 4y ago
      Sort of like a 1031 exchange in the US: https://en.m.wikipedia.org/wiki/Internal_Revenue_Code_section_1031 https://en.m.wikipedia.org/wiki/Internal_Revenue_Code_sectio...
    - krzyk 4y ago
      Why? You eventually have to pay it when you cash out (or buy service, goods with crypto). If you wait you loose tax returns for the amount you invested in crypto (with each year you have it halved). Basically this is the same as in case of stock market. You don't pay taxes until you sell stock. And here stock is whole crypto market.

TekMol 4y ago

Ok, I understand that a stablecoin it is easier to handle than the dollar. But who is doing it? What is the use case?

pvarangot 4y ago
Trading. Quick arbitrage, day trading, pump and dumps, leverage. The same thing you can do by having dollars on your stock trading account you usually need coins on your crypto account and it would be crazy to have the volatile ones.
- TekMol 4y ago
  So crypto traders hold $150B of dollar denominated stable coins at the moment?
  - tornato7 4y ago
    With the crypto market cap at $1300B that sounds pretty reasonable to have 11-12% cash on hand
    - FireBeyond 4y ago
      If only Tether and similar could show something, anything, an audit, that shows anything close to this. I almost typed audit-like. But I remembered they've pulled that shit before. "Attestations of balances" mean fuck-all when even back when they were denying the links between Bitfinex and Tether, the same people were countersigning loans between the two for both parties. Oh, they did claim that they had had an audit done. But they couldn't release it to the public "because it was in Mandarin". I very very very much doubt that 11-12% cash is in anyone's hand.
      - xur17 4y ago
        > If only Tether and similar could show something, anything, an audit, that shows anything close to this. Tether isn't the only stablecoin. USDC, GUSD, DAI, LUSD, etc all have either attestations / audit reports (that are actually legitimate) or are overcollateralized with assets that can be seen on chain.
  - nostrademons 4y ago
    Not that unreasonable. The total number of crypto traders globally is estimated at between 300M [1][2] (note: close to the population of the U.S.) $150B is an average of $500/user held as stablecoins, which doesn't seem that far off. [1] https://triple-a.io/crypto-ownership/ https://triple-a.io/crypto-ownership/ [2] https://fortunly.com/statistics/cryptocurrency-statistics/#gref https://fortunly.com/statistics/cryptocurrency-statistics/#g...
quickthrower2 4y ago
Traders and tax evaders. With stablecoins you can trade on decentralised smart contracts, and they even allow something called flash loans where you borrow the stablecoin, trade it for profit and then pay it back in one rollbackable transaction! Also there are many high yield investment schemes based on holding stablecoins.

jen729w 4y ago

> no issues with tax&bank issues Sure about that bit? This may be the perception – that holding your assets in 'the crypto system' avoids tax issues – but the taxman will disagree. Swapping $BTC for $USDC or whatever your tether of choice is is a 'taxable event'. You've sold one security in exchange for another. It doesn't matter that they're both crypto. Now, it might be harder for the taxman to detect this event, which is a different thing.

krzyk 4y ago
You mean taxable for US tax office? In my country it is not taxable, only exchange to fiat currency is. (and this is explicitly mentioned).
- lottin 4y ago
  If this is true, it simply means your tax code has a giant loophole that allows people avoid paying tax on capital gains by simply swapping an asset for another.
  - adnzzzzZ 4y ago
    You still have to pay taxes when you convert back to fiat though. And eventually you have to do this because you don't want a significant portion of your wealth in stablecoins that might collapse overnight.
  - sokoloff 4y ago
    Sort of like a 1031 exchange in the US: https://en.m.wikipedia.org/wiki/Internal_Revenue_Code_section_1031 https://en.m.wikipedia.org/wiki/Internal_Revenue_Code_sectio...
  - krzyk 4y ago
    Why? You eventually have to pay it when you cash out (or buy service, goods with crypto). If you wait you loose tax returns for the amount you invested in crypto (with each year you have it halved). Basically this is the same as in case of stock market. You don't pay taxes until you sell stock. And here stock is whole crypto market.