Topic: Stable coin or having USD in bank - page 2. (Read 1039 times)

I think Bitcoin is completely independent and has no currency under its control. Now you say that if you want to know something other than currency as an alternative, you should buy gold or diamonds or a land Fairly stable as they do not move in a price very quickly and are a long term subject.If you thinking short term then you can take dollar and if you are planning long term then Bitcoin.Many states prefer to adopt stable currencies because they do not want to take risks.Bank money is stable it is good because people that are afraid of taking a risk gets peace of a mind by keeping money in a bank but those who want to earn more profit trade with currencies like Bitcoin.A currency that is stable today may not be tomorrow because it is stable now What is not stable today may be stable tomorrow so try to take risks.If you care about anything other than Bitcoin without hassle then you buy the asset and save it.

In this case, you need to make a distribution in several of the most reliable directions in your opinion. Diversification has always been a smart move when it comes to allocating investment capital. But when we are talking about small capital, when the investor is only at the beginning of his journey, then this is difficult to do and may require more risky moves to achieve a significant result.

As our capital increases, we will need to pay attention to security, since probably one of the most important aspects will be the preservation of our funds.

I don't know I think it's hard to choose between the two. Because both have their respective advantages and disadvantages. If it is stored for a short time because it might be used again to invest in crypto then of course stablecoins could be an option. But in the long term, both stablecoins and physical dollars are still at risk of being affected by inflation. If there is a choice of precious metals (Gold) then I think I will choose this one if the goal is to avoid inflation. But that's only if it's for the long term.

My country is going through such a dire situation. Our national currency is down so much in these 3 years and most of rich people are saving USD for better return because increase in inflation will not affect these as inflation has direct impact on national currency, the more inflation mean our currency price down and USD value increased.


Money in the banks are not complete control because if the country defaults then bank will freeze all funds and no one could get own fund holds in banks. In case of banks fail we could also experience delay of our payment. In 2023 silicone valley and some other banks also collapsed so it's not true that we have full control only in banks. Banks data are noticed by authority and if they don't know about your online earning, they will open money laundering case against you.

I think the most safe is to convert your Btc to USD and keep in home despite of bank or other alternative is to buy gold. This is only if you want to sell btc otherwise btc is better ways to hold for more profit

What is the point of holding stablecoin, which follows the price of a fiat currency? They both face the downside of inflation. They both lose PPP at the same time when there are better alternatives, like metals. It is better to hold metals like gold and silver instead of holding stablecoin. Crypto can be profitable if you plan to hold it for the long term. But for the short term, gold and silver are the best options instead of holding some fiat-pegged token.

I think both are equally bad to use or secure wealth. Index funds are way to go when we are in Stable economy. Otherwise gold can be good option. Or just special funds that will be properly managed. I personally dislike using both usd and tether. Usd is very costly to use and inflation on it is obvious. Tether has dangerous mechanism that may make it collapse in one day. Invested money in funds on the other hand are protected by legal means.

Choosing might be depends on your needs since for storing I might also choose USD in the bank since I can safely say that only inflation is the enemy and the amount I can get is still the same. But also for investment and entertainment purposes would also choose stable coins since this is the coin where we don't need to worry about heavy drop and we can transfer it to any crypto platforms since most of them accept stable coins for deposit and withdrawal request.

If we are talking about stability I 100% agree with you. I will surely just convert my Bitcoin to USD or my local currency, than convert it to stablecoins. It is better and safer to have it like that especially since it's still hard to find merchants that accept Bitcoin for transactions here in my area. Besides, I'm sure some, if not most, of us are already aware that stablecoins are not really "stable". For those who are confused about this or unaware of what this means you can check this article by Bary Rahma: https://beincrypto.com/stablecoins-not-stable-growing-threat/#:~:text=Stablecoins%2C%20digital%20assets%20designed%20to,stability%20of%20these%20digital%20assets.

Indeed, stablecoins are not as safe as many people think, they are no different from altcoins on the market, they can decrease in price and lose their pegs at any time. Stablecoins are just an intermediary when we convert bitcoin to fiat currency and vice versa, and I've never held too many of them.
If I had to choose, I would still choose USD over stablecoins, because they have never been fundamentally safer than USD. Stablecoin of the Terra ecosystem has taught us a lesson and let us not forget that lesson.

APY? I hadn't thought of that and maybe you're right but it's a shame for a crypto investor to believe what others say without doing any research themselves. And what's even funnier is that they rate and trust centralized exchanges higher than banks when banks are much safer than centralized exchanges. Many people always criticize centralized banks but choose USDT and centralized exchanges to store their assets, which is really ridiculous to me.

Do you want to take profits?
I think it is not the best time to sell Bitcoin. Why don't wait for 1-2 years, the bullrun season is coming.
TBH, even if Bitcoin price increases quite significant, I won't convert my Bitcoin to any coin or dollars. I prefer to hold longer time, 1-2 years.

Anyway, when I need to convert my Bitcoin, I think it is better to convert it to dollars or my national currency (Rupiah). I can't use Bitcoin for any transactions in my country, that's why I need to convert it. I think convert it to stable coins won't be a good idea. Stable coins can drop its price, it is not totally stable in price. Even you know that the price can free fall if there is something wrong with the coin in the future.

I don't seem to see things your way since when it comes to the USD in the bank, it's the only one that can assure you of the true $1=$1, stablecoins can't. This could be more painful if you are in dire need of money to be converted and there is a slight change in the price of the stablecoin against the USD, especially when the amount is much.

Secondly, your money in the bank is insured, even if there is any problem, you can be sure to get your money back. But no one might listen to you in case the wallet you store your stablecoin in is compromised.

Unless I am using my stablecoin to trade, I would rather store my USD in the bank.

Stablecoins can also be stored in everyone's personal wallet, just like everyone keeps their Bitcoins quite safely, so in terms of how to store them, I don't think there will be much difference as long as both are in a fairly safe wallet. However, storing USD in a bank will of course be very different from storing stablecoins in our own wallet because USD in the bank can only be controlled by the bank, not by the actual owner.

So it is clear that there is a difference between these two things in terms of how to store it and also in terms of how to manage it and in terms of risk it will also be very different because a wallet that is not well guarded also has the possibility of being hacked by someone else. Meanwhile, banks will definitely be responsible if things happen that we don't want with our savings. As long as these things happen, it can be very logical for the bank to resolve them.

I think because staking USDT provide more APY then USD in bank,
which is very easy and take low effort to stake, like just go online on any staking platform, or exchange which allow staking with good APY, Open an account, do KYC, send fund and earn interest.

Maybe most of them don't know risk behind it, most of them just listen some youtuber's telling USDT is safer than USD. they do not do their own research and invest in anything.

They are both good decisions as any of the above mentioned style has some good level of asset security. The banks protects your assets enough such that you only get affected when fiat price goes down but if the Bank suffer any other losses resulting from hacking and other factors which happens around the banking space, your assets remain protected similar condition applies with stable coins.

In terms of access and total control it is much more better with stable coins, you have as much access and control as you want to your assets at any time and day if needed. But with your dollar in the Bank you have limited control and access to it as it might not be readily available as at when needed. If both cases and their peculiar conditions are taken to consideration, it's very rational to think that both serves for different purpose at various times. We can say for a long term the bank can be a good option and for short term other stable coins can serve as they can be easily accessed at ease without out much hitches

Master and servant, well said, my friend. Obviously USDT is just a shadow and it can disappear at any time but it seems many people still prefer it over USD. They think that depositing money in a bank cannot be safer than holding USDT, which is actually a serious misconception. They forget USDT is also a completely centralized coin and even it is only offered by a private company and it cannot guarantee anything. Meanwhile, the USD is guaranteed by the US economy, the world's No. 1 power. USDT's capitalization is even smaller than 100 billion USD, while USD is the world's reserve currency, with a huge difference in safety.

In my opinion it's all the same because stablecoins and USD have the same nature and secondly they are centralized and we also don't have full control over our assets remember not your keys not your coins if you want to have full control over our coins maybe you have to store bitcoins in cold Our own wallet is more cross-border and easy to carry anywhere and just remember our own phrases remember there is no responsibility if our cassette is lost in the world of crypto currency

Your opinion is clear to me because take for instance of luna how it kill many people because of peg it lost, am also a victim of such only me understand how I felt during the period. Base on my location the are favourable. USDT is a dependant so anything can happen at anytime, if any happen to USDT, the USD will never be affected because the currency is independent of it own. Let assume if today USD collapse the USDT in gone, while if USDT collapse the USD stay. We shouldn't compare the master and the servant, the two are not the same it is clear. I prefer USD than USDT for the purpose of security, and what we need is safety.

USDT will collapse and disappear quickly if the Tether company does not have enough USD to support it, or if they are hacked and print tons of USDT then it will also lose value quickly. Meanwhile, the USD is supported by the US economy and if the USD declines, USDT will also have the same problem, but the collapse of USDT will not have any effect on the USD. Therefore, in terms of safety, USDT cannot be compared with USD. If it were me, I would choose USD to deposit in the bank instead of having to put my assets in an unsecured asset like USDT.

There's no stablecoin that is safe, just that they have different degree of risk when you compare all of them. We have had several of them and more are still coming to the market but first we have to look at each of them:

Centralized stablecoin: This one's are pegged to a dollar bill and other assets like treasury bills that can be converted with stressing the liquidity behind them but often times, the companies behind these stablecoins (USDT, USDC, BUSD and many more) are not free from regulatory scrutiny, BUSD for example has fallen and it's still fallen down because Binance which is the face of the company is duelisting the pairs and have instructed customers to convert them to other stablecoins on the exchange.

Decentralized stablecoin: This is a decentralized stable currency that is pegged to the amount of a dollar and the advantage of this is that is open source which means people get to see what is happening and how it's regulated and users can even deposit a asset to take DAI. There are many of these stable coins that are been launched but protocol manipulation made them fold up before time.

My suggestion is this: If you are going for centralized ones, pick USDT and if you need a decentralized stablecoin to trust and have high peace of mind to others, go for DAI instead.