SOLVING THIS PROBLEM WOULD SOLVE ALTCOINS FOLLOWING BITCOIN!
We all know that Steem and other altcoins tend to follow Bitcoin, BUT NOT ALWAYS. This is because altcoins can only get converted to fiat if they go through the exchanges first into Bitcoin and then to cash. To me this is a no brainer with someone that has the power to solve this important and annoying problem. I’m not sure exactly how it works but if someone create and exchange that can have altcoin converted right into fiat then when Bitcoin takes a dip, altcoins wont follow. They will be independent of each other when it comes to price fluctuations and strictly on the well being of the company itself. I mean how can we expect Steem to hit $150 if bitcoin hits the floor? It would be very difficult. I do strong believe if we get the word out there into the right hands that this major problem can be solved and we can make our way with Steem to $150 and other altcoins growing as well. PLEASE RESTEEM so this message can spread. I am looking out for the crypto world and the Steemit community, but there is only so much I can do on my own. As a team we can solve this problem! Thank you for reading.
Hey brandon - I think it's the same reason governments had such a hard time regulating synthetic cannabis. Every time they declared one, another would pop up to take it's place. With crypto, it's the reverse - they're popping up like mushrooms, but at this stage, it's almost impossible to tell which ones are deadly.
See, in order for your idea to work, the exchange would have to be prepared to purchase your coins for fiat then and there. By funneling it toward one coin, the exchange takes only 1 risk (that bitcoin might drop). If they offered it for every coin, they would take the same risk for every currency offered.
Further, there is probably massive concerns regarding money laundering, the legitimacy of alt-coins as a whole etc etc. The regulations are murky - policies differ. Legally speaking, it's a cluster-fuck. Everyone wants to get rich, but few are willing to risk the noose in order to get there.
great info, i just hope this crazy tax code against crypto doesnt last!
I don't think it will. With the whole point of crypto to be decentralized, I think that eventually, you won't even need to report to the IRS. You will be able to use your currency as you want without being bothered. Businesses will start paying employees with it as it becomes more stable. Many people don't realize we are still on the ground floor! The bugs need to still be worked out.
How do you see it playing out? Here in Australia, the public isn't being told anything. Thus far, I've had to change banks three times. And I have friends who are now completely de-banked... but not by choice - the large banks just won't accept them as customers.
Sorry to highjack the thread, but I am looking to transfer money to Australia from Europe. What is a good exchange to exit to fiat? And which banks have you had good and bad experiences with?
Why not just buy a few grand word and do an OTC? P2P transactions are pretty easy so long as to take measures to keep yourself safe and ensure that you're not about to get scammed.
I will check it out, although I prefer to be in control via an exchange even if it costs a little bit.
I have heard the horror stories. That is awful that your friend cannot join any bank. But that could be a blessing. Some banks even charge you just to hold a checking account. Has he looked into a investing firm? I know Etrade will send you a debit card if he wanted to hold his money there. Not a bank, but some place safe to hold his money.
I'll have to look into that. What about crypto debit cards - anyone have any opinions or feedback? It's something I really need to look into.
I am currently using a Shift debit card. They're really good, only 10 dollars for the card and then you can connect it to your Coinbase account to use any of their offered currencies to withdraw money from. I think the standard ATM fee is 2.50 which isn't that bad
Ah, cheers for the information. I'm in Australia though, so we have some limitations. For instance, I don't have access to the exchange and thus can't sell - only buy. But I will have to look into whether or not I'm actually able to withdraw funds.
Ah, I see the dilemma. I will do some research and see if there are any cards you could potentially use.
The Real kicker here is the monetary situations in crypto-currency, is akin to the United States in revolutionary war period up until the Constitution. And pre WWII economies in Eastern European Currencies without a world bank. Proliferation without backing,
Prior to the Constitution Congress giving domain of Currency to the Federal Government and taking it away from the States, every state had its own currency and there was widespread inflation and deflation and predatory practices. (sound familiar??) The term don't take any wooden nickles came out of that period from the exact situation of actually some states using wooden coins....
While crypto-currencies sound good as a fiat,,, they are anything but that... you are essentially looking at a situation were someone makes a grocery list over night and goes down to the store to buy a loaf of bread and now their bread which yesterday cost $2 today cost $12 or now is worth .20 hurting the grocer, who can't be constantly repricing every item in inventory....
Even worse you could have the situation Confederate Dollars or Laos Coin, where the government does not exist and the normal person does not have life savings anymore!
That's why the USA was on the gold standard till the 1970s and has a managed monetary fund....
Don't get me wrong I'm not saying crypto-currencies don't have there place but, there will always need to be a few real world fiats gold, silver, platinum and a few Currencies based the strength of the biggest economies USD, Japan, China, (and if it does lose any other members the Euro)
you are right awesome post......
I use Litecoin not Bitcoin to get from fiat to alts. Bitcoin would take too long.
actually exchanges that allow fiat <-> crypto conversion such as Kraken and Bitstamp offer several crypto "bridges" aside from Bitcoin: usually Ethereum, Litecoin, Bitcoin Cash. Bitstamp also offers Ripple to EUR and Ripple to USD conversion. The key here is that Bitstamp itself runs a node of each of the BTC, BCH, LTC, ETH, XRP blockchains and can thus have a view, at every moment, of all the balances of these cryptos. So if you want STEEM <-> USD or STEEM <-> EUR conversion you need to persuade Bitstamp to operate a node on the Steem blockchain
There are a few fiat to cryptocoin exchanges coming.
FairX looks interesting.
From what people are saying, you pay your fiat, choose your AltCoin and FairX converts it to Stellar Lumens (XLM) and then automatically to that ERC-20 AltCoin of your choice.
All in just 2-5 seconds.
Oh and the cost will be pennies, so long as FairX don't add on a huge fee or have a wildly different rate on a coin.
I think a lot of these types of exchanges will be popping up now, as it's the natural evolution of the crypto exchanges.
Not sure when FairX will launch (but I guesstimate early summer).
It's a shame it's not here now with this dip being an excellent buying opportunity.
Hopefully other similar exchanges are being developed and could come to market sooner.
I'm sure Binance et al will follow suit, otherwise they'll remain exchange 1.0 and stop growing so much.
Check reddit for more info and other opinions.
there is already the market that you are describing. USDT, EUR pair and so on. For many reasons, people prefer the BTC trading pair. Just recently one of those reasons, became even more, of a boder the tax implication of deling with crypto
What do you mean exactly?
To the question why not trading in fiat vs bitcoin. Many people use to only paid taxes when they exchanged crypto into fiat; at least in the USA, Reason why many find it convenient to only trade in bitcoin paring however with the new tax code I believe we will see a change in that amount of trades done with fiat paring. I heard also Binace is about to launch some fiat pairing.
If I'm cashing out a little steem I'd much rather go straight to USD since I'd get taxed anyway, but that isn't an option. In fact I can only go to BTC, as far as I've found, because no other trading pairs are supported for Steem even though I'd rather use Litecoin to be faster with lower fees.
As far as trading within cryptos there's the same problem, you have to go through bitcoin when I might really be trying to buy IOTA with Steem. That extra transaction of Steem->BTC-IOTA means extra transaction fees and effort, and keeps everything affected by the BTC price.
Mmm Steem -> ETH would be great, poloniex working on it
Why not simply send it to an exchange (Binance for example) then trade it for another crypto and withdraw that. Done. Or... would open ledger work?
What can you trade it for @binance ? btc ? Don´t think they have steem at binance...
I just sent and received some Steem and below is my result.
Send Steem from Steemit to Bittrex for free.
Send Steem from Bittrex to Steemit for a fee of .01 Steem.
This in my opinion is very reasonable.
Sure but we're talking about getting Steem to USD. So Steem to Bittrex, sell Steem for BTC (fee) then transfer BTC to Coinbase (fee 2) sell BTC for USD (fee 3.)
Plus aside from the fees the multiple steps are annoying and BTC is slow so you have to wait for the transactions to go through.
I think you are right, once the Altcoins become free to convert to fiat without conversion to the Big 4 being Bitcoin, Bitcoin Cash, Litecoin and Ethereum, those Altcoins will become free of that bond. It is great with those big boys are surging, but they can become an anchor in a bear-ish market.
Honestly, I think it is going to be hard to break those bonds because so much can revenue can be skimmed via the transaction fees. Money talks as wise man once said.
Check out upcoin.com they are launching a new exchange that will offer fiat services. They are also giving away $500 in free trade fees to those that pre register for the launch.
Really wow, I’ll check it out, thank you!
Totally agree!
It would be nice if only one can exchange bitcoin to fiat or altcoins without third parties, just as decentralized as the whole blockchain system!
All the options are already there tho, there is no need to even use BTC anymore.
Check out bitshares for example, you can trade in BTS / BitUSD / BitEUR ,
i have not owned any BTC for months now.
Bitshares again! I really need to look into this!
I don't think you have a point there, Coinbase for example sell LTC and ETH directly to FIAT, either USD or EUR depending on your account. What is true is that this depends on the pair which you bought your coin, i.e. ETH/BTC, unless you send it to coinbase to put your ETH directly to FIat you will have to go through BTC first.
The problem is not about Fiat or not Fiat but about the correlation between coins, investors see BTC and altcoins as merely the same thing, if BTC goes down they panic and sell the others altcoin, and viceversa.
100% ture its about the market size and dominance like any market :), many new investors here!
Same thing as google stock vs amazon stock. Lets pretend they are at 1:1 1000$
Market goes down 10%, stocks are speculated down 10% both now worth 900$
Amazon launches a new service, gains market dominance making google fall to 810(10%) and amazon gaining to 990.
Market movements makes them go same direction, dominance in the market produced by the companies separates them :)
This is like saying, if Amazon goes bankrupt, while the tech market is fine, google will die to. not ture sorry!
Indeed, the problem is we have a completely new market, unregulated, full with milennials who barely know to read a chart and manipulated by the mainstream media at will. It even sounds ridicoulous to think a market crashes because there are news about regulation, actually that makes me happy because it means that it is being recognized hehe.
Well if this was to happen it would make it much harder for the people manipulating the markets to keep doing it. Altcoins are actually being used on purpose in order to directly control the price of BTC. This is done by the biggest players in order to keep buying up cheap BTC in a market with such limited supply. Even looks as if governments are big players in manipulating markets lately. And don't you find it odd that there's been some sort of news or publicity of some kind in order to excuse the rapid increase in value of just about every BS coin under the sun while BTC drops... which I'm sure a lot of us all knew well in advance was already coming. Just look at the charts, it's pretty obvious.