What are stablecoins, and how do they work?

Рет қаралды 68,377

Жыл бұрын

Stablecoins are supposed to be everything tokens like bitcoin and ether aren’t.
Whereas bitcoin’s price fluctuates sharply, stablecoins are designed to be worth the same as something else - usually the U.S. dollar. Many stablecoins are also issued directly by companies, whereas bitcoin operates independently of any central authority.
Recent events have shown that not all stablecoins are as stable as they’re made out to be. TerraUSD, a so-called “algorithmic” stablecoin, fell below its peg dramatically, eventually crashing to a fraction of a cent and bringing an associated coin down with it.
The debacle has led to fresh scrutiny from regulators, who are worried stablecoins will one day get so big they could cause damage to the larger economy if they fail.
Tether, the world’s largest stablecoin, is a $70 billion juggernaut in the crypto world. But the company, which claims each of its tokens can be redeemed for exactly one dollar, has long faced doubts about the assets that underpin it.
Watch the video to learn more about stablecoins and why they’re so controversial.
#CNBC #Stablecoins #Crypto
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Пікірлер: 91

@thomaslam8448 Жыл бұрын

Problem is there is no transparency. They tell you its got a backing but turns out it doesn't

@philthy941 Жыл бұрын

You should ask for transparency from the banking sector lol. I develop their tech and it's all smoke and mirrors

@arctic_haze Жыл бұрын

@@philthy941 Well, banks did happen to have very dodgy collateral from time to time. But stablecoins do not even report what they have. If you do not trust the banks, why would you trust stablecoins?

@reginamoore9013 Жыл бұрын

Recently, it seems that stable coins have a strong presence in the cryptosphere. For me, Tether occupies a leading position in the rating of stable coins.

@killerbi5052 Жыл бұрын

Once again I am convinced that USDT will always be in my wallet

@WhistleBlower-vr6ob Жыл бұрын

Mfkers should be going to jail for fraud and a Ponzi scheme...

@johnnieshelton8976 Жыл бұрын

I think that a stable coin plays an important role in supporting cryptocurrencies, for example, Tether.

@daxatax129 Жыл бұрын

a healthy market weeds out the crap. an unhealthy market says the crap is too big to fail.

@aslongasittakesforme3163 Жыл бұрын

IMO stable coins is an integral part of the crypto space which is impossible to imagine regular trading without these days. That is why many experienced investors use fiat-backed ones like Tether which is the most popular and safest on the market rn.

@edortauranga5503 Жыл бұрын

Rn?

@sharonmay8158 Жыл бұрын

The main role of stable coins is to quickly transfer funds between exchanges. Now I use USDT and can take advantage of arbitrage offers that arise when the price of a cryptocurrency differs from one exchange to another.

@lostinmuzak Жыл бұрын

Lol. Regulators? What regulators? Let’s get some 6th graders. Will do a much better job.

@donnatorres924 Жыл бұрын

I think that you should not be afraid of stable coins. There are options that have proven themselves on the market for a long time. For example, Tether.

@princejaiswal6487 Жыл бұрын

Today world living and working in Illusion.... 😅🤣🤭😂

@andrewleventis8341 Жыл бұрын

aah 17th century tulip buying is back

@saulgoodman2018 Жыл бұрын

Still didn't understand none of this.

@elliceeastwood5368 Жыл бұрын

What do you think about stablecoins like mxnt?

@user-li7se1fp1t 10 ай бұрын

Great video! Very informative! Very interesting! 😊

@foxxoff9670 Жыл бұрын

Never forget about tether when talking about stablecoins.

@shanonramsey5056 Жыл бұрын

A stable coin is very useful for traders, especially beginners. Using USDT in trading makes transactions quickly and easily.

@Web3WondersUS 4 ай бұрын

I am your 1000th thumbs 👍 up! Excellent video showing the functionality and the risks. Web 3 offers a ledger of trust, the stable coins need stabilizing.

@lalithrao8406 Жыл бұрын

Is it CDFC and stable coins are same thing ??

@alparslankorkmaz2964 Жыл бұрын

Nice video.

@jayguzman3111 Жыл бұрын

I wouldn't draw any comparisons between USDC and USDT. Tether is simply more transparent about their reserves, and they publish quarterly reports on them. They just outperform and are more transparent than USDC.

@leouyw8476 Жыл бұрын

Never forget that tether was the first and is still the most popular.

@cryptoman9665 Жыл бұрын

What about MXNT? A promising stable coin backed by pesos.

@giliantron8253 Жыл бұрын

But do not forget that now there are already coins backed by different currencies, for example MXNT by pesos.

@jabig1 Жыл бұрын

Do Kwon was removing large sums from its liquidity

@sosyaladam5456 Жыл бұрын

Last time I missed another project like this that made x10 I've invested $1000 on this posschain I'll not miss the train this time

@muskduh Жыл бұрын

thanks

@lossoest7988 Жыл бұрын

Do not forget that stablecoins are different. Like GBPT for example.

@johnydep8554 Жыл бұрын

Probably if you look at the capitalization at the moment, Tether has the largest

@AriVovp Жыл бұрын

What are penny, cent?

@jamesroller6087 Жыл бұрын

When you talk about stablecoins, never forget about usdt.

@williammonda360 Жыл бұрын

I personally am not afraid of them and try to add as much as possible to my BFX wallet

@arctic_haze Жыл бұрын

This comment did not age well, did it?

@KingOfHithlum Жыл бұрын

So much for renouncing "government control" !!!!😂

@gihappy9414 Жыл бұрын

From the entire list of stablecoins, I can only choose Tether

@TomNook. Жыл бұрын

Q: What are Stablecoins? A: An oxymoron.

@CalvinK300 Жыл бұрын

Same as “Handsome Man” or “Beautiful Girl” on Tinder.

@charleswilliams8847 Ай бұрын

Think of them as deposits denominated in a specific currency in an unregulated digital bank that operates on the internet out of the reach of any government. These deposits can be used directly in economic transactions between parties willing to use them.

@zachnewkirk9486 Жыл бұрын

I’ve got 3 words for you: 1 diversify 2 diversify 3 diversify

@rimoham9248 Жыл бұрын

Now there is only one right choice - tether.

@Marantzzz Жыл бұрын

Pyramid scheme

@charleswilliams8847 Ай бұрын

Stablecoin can best be described as unregulated digital banking. Money in the modern world is created by financial intermediation - the basic function of banks. Now if regulation is beneficial to owners of stablecoin, the operators of a stablecoin system could easily opt for it. Governments could be enlisted to provide this service as could the big auditing firms.

@itsok3195 Жыл бұрын

actually it really looks like a great project it has 50m cap

@TimeTrapper Жыл бұрын

Guys do not attack these projects like a flock save some for us

@dimetriogontsy9505 Жыл бұрын

The popularity of GBPT is growing. And soon such coins will be very important for the market.

@troyortiz5397 Жыл бұрын

USDC keeps on being a dissapointment especially with them still lacking any audits

@danieljones3859 Жыл бұрын

I think people are afraid if they don't understand. You can easily understand the advantages of using USDT and trade successfully.

@joriahmass5970 Жыл бұрын

I am following the news about stablecoins now and it seems GBPT is gaining popularity

@dennisharper9959 Жыл бұрын

I think we have no reason to worry. I use Tether and for me it is the most reliable option of a stable coin.

@MDK83 Жыл бұрын

Why is it the most reliable?

@dennisharper9959 Жыл бұрын

@@MDK83 If we compare this coin with competitors, then we see a higher level of security. During the general downturn in the market, Tether proved to be the safest option.

@MDK83 Жыл бұрын

@@dennisharper9959 I understand the historic state, but all stable coins were reliable before they fell apart. In terms of the methodology being used and theory, what makes Tether so different and thus more reliable... aren't other stable coins opperating in a similar fashion.

@dennisharper9959 Жыл бұрын

@@MDK83 I see how the media has been shouting about this for a long time, but nothing happens. Using stable coins gives us a lot of benefits. For me, USDT is the representative of the dollar in the cryptosphere. It is inconvenient to trade in dollars, and it is uncomfortable in cryptocurrencies due to volatility.

@TNoel-ol8es Жыл бұрын

There is no reason to worry if you use popular stablecoins like usdt.

@anthonyquinn9899 Жыл бұрын

Many are worried about stable coins because they don't see evidence of full security. For example, the USDC has been lying about its reserves for a very long time.

@kufarby4342 Жыл бұрын

Do not be afraid of correct and reliable stablecoins - such as Tether for example

@mack-uv6gn Жыл бұрын

Pump and dump?

@sergiogonzalez6047 Жыл бұрын

Terra Luna classic will rise from the ashes . Do kwon also did something shady along with sbf to bring it down it was not entirely the fault of the algorithm

@iggs1e33 Жыл бұрын

Like everybody knows ico projects make x10 x20 in bear seasons I've joined a couple of projects along with posschain let's see what happens

@jessicaholland8780 Жыл бұрын

Stablecoins like tether will help you protect your funds when the banking system continues to collapse

@ritensaliman3589 Жыл бұрын

If suddenly someone does not know which stablecoin to buy, I advise you to pay attention to Tether

@amandaadams6601 Жыл бұрын

But USDT is still the best option right now.

@Kevin-fq3zh Жыл бұрын

i’m still laughing my guts out at all those goons who got burnt by the crypto meltdown

@satoshihunter Жыл бұрын

It's not only about trading smh. Stablecoins work for a global cross-boundary transfer on the blockchain within seconds of settlement. Try to transfer dollars between countries. Stablecoins make it a lot easier and faster (and stable!). Banks should adopt it and replace the current slow and cumbersome system. Painting a negative picture of them is like denying the importance of the internet in 90s-2000s. Simply stupid.

@17pradeepjena55 Жыл бұрын

Dude please give up the crap about how "everyone was saying internet will fail". No ones going to fall for it this time.

@chunkalunkin2000 Жыл бұрын

Life is funny

@sergiogonzalez6047 Жыл бұрын

These guys had no clue about ftx either 😂

@b2bblitzreplays362 Жыл бұрын

i love blockchain projects they make the platform evolve

@franksway3658 Жыл бұрын

XRP

@Stay100chicago 10 ай бұрын

•

@MoritaJunichiro Жыл бұрын

World transfer in my socks？…？

@randallchandler7263 Жыл бұрын

քʀօʍօֆʍ

@anonanon7235 6 ай бұрын

1) "What are stablecoins" is a scam. 2) and who cares how does it work.

@zuhmn8340 Жыл бұрын

This thing is just a cheat

@b_to_the_b 6 ай бұрын

They’re a lie

@joeashbubemma Жыл бұрын

It looks like the world is desperately trying to find the next religion, and there are more than enough preachers to go around. It's all based on...wait for it...FAITH.

@zainiabdullah621 Жыл бұрын

"The Summit of the Americas looks to be a debacle, a diplomatic own goal. The US has no trade proposal, no immigration policy, and no infrastructure package. Instead, the US focus is on who will and will not be there. " - NYT June 06, 2022 China is seemingly everywhere investing in strategic technologies, embedding itself in 5G networks and other infrastructure, building military alliance, working political relationships and joining projects early to gain influences. Of the 31 countries in Latin America, 25 have partnered with China on infrastructure projects for economic development. The US's main problem is the administration's inability to offer economic goodies to foreign countries for them to align with the US. The US offered only millions while China give billions and billions. BECAUSE global economic liberalism has been so successfully discredited by Donald Trump and Joe Biden ans detested by American voters. China on the other hand has more leverage, because dissent is not part of the process, everyone knows what's expected. To quote the President of Barbados in front of the US Secretary of State at the Americas Summit: "We need to be talking WITH, not to be talking AT !"