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

by TekMol 4y ago

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.

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

by 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?

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.