Post
Topic
Board Speculation (Altcoins)
Re: Are stable coins the solution for price volitility?
by
akram143
on 12/06/2019, 20:37:24 UTC
Cryptocurrency is often criticized for its price volatility. Some solutions are attempting to control price volatility by price controls (i.e. USDT, Ample).  Is this really the correct solution?

The current crypto price volatility is caused by 100% buyer demand dependency on speculative trading. Emotional speculators turn with the latest news or hype.  Of course, prices will be most volatile when they are solely dependent on speculation.   

More mature publicly traded assets like gold and silver don't have the price volatility of crypto because the majority of their buyer demand comes from their utility. Gold and silver are guaranteed to be purchased regularly for its utility purpose of manufacturing electronic components, jewelry, etc.   

Similar to the dot com era, many napkin ideas had millions of dollars thrown at them, but the only ones that survived were the ones with a sustainable business model.

As crypto matures, the successful projects will be those that create the majority of their buyer demand from real utility. 

it is not the only reason available to solve these kinds of problems because it involve lots of politics and also lots of confused decision will made this type of situation to be happened otherwise if we find the right situation only we can easily solve them