More than $ 9 billion on stablecoins in the circuit, is that a good or a bad thing?

The aggregate market value of all of the stablecoins will continue to rise. From the study of Coin Metrics, it appears that there are now more than $ 9 billion on stablecoins in today’s society. It’s going to be hard, as at the beginning of april, there were 6 billion dollars ‘ worth of stablecoins in life. That’s an increase of over 50 per cent in just one month!
Dates: Coin Metrics

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The value is linked to a fiat currency

Stablecoins are cryptomunten with a value linked to a currency such as the dollar or the euro. The best-known and most stablecoin is a Tether (USDT). There are now 6.3 billion of it in circulation. But what about the growing number of stablecoins in fact, the cryptomarkt? Some experts see it as a positive development, while others warn of its negative impacts.

Stablecoins could be negative for the bitcoinkoers

According to Sam Bankman-Fried, the CEO of computer exchange, FTX, and bitcoin trading fund, of Alameda, and Research, you can find a growing number of at three different ways to declare it:

Over-the-counter trading. According to Bankman-Fried is a tether, especially in Asia, are very popular.
Users to sell bitcoin to tether to in order to close out positions (hedging).
Users to sell bitcoin for the tether in order to reduce risk.

The last two factors are the case, then the increasing range of the tether, therefore, have a negative impact on the bitcoin price.

But it is also good news

On the other hand, it can be a great supply of stablecoins in the long term it will be positive. That puts Ryan Selkis of the CEO of a crypto-analyst firm Messari.

Prior to the advent of stablecoins, it was hard to get bitcoin to exchange for us dollars. Your bank should transfer the amount to your bank account, and that will take time.
Stablecoins allow for more flexibility. You can quickly switch between bitcoin and the dollar, without a bank will have to be used. The more stablecoins in today’s society, how to make more money in the cryptogemeenschap continue. This money is now easier than ever to return to a cryptocurrency such as bitcoin and ethereum.

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