Stable coin or having USD in bank - page 3.

DrBeer

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Quote from: posi on September 09, 2023, 11:44:12 PM

Quote from: karabiber on September 09, 2023, 04:12:11 AM

You need to research the risks involved before making a decision. My preference would definitely be for USDT. The reason for this is related to the country i live in. I live in a place with high inflation and I keep most of my money in foreign currency. By accumulating USDT, i react to possible developments with a delay and therefore have the opportunity to take a position in advance.

I can earn 5-6 percent annual return with USDT, which is not possible with the foreign currency i keep in the bank. Yes, although usdt has some risks (your money is not in the bank after all and it is all about trust in the stock market), if you are in a place with high inflation and do not want to experience a negative situation against sudden exchange rate changes, you can choose usdt. If your priority is pure security, then keep your savings in the bank.

But USDT cannot be safer than USD and as I know all banks have USD savings accounts for anyone who needs one. Why don't you choose USD?
USDT is pegged to USD and sometimes there are incidents that lead to loss of peg such as dumping or manipulation in the cryptocurrency market. That's not foreign to us anymore, so holding all of our assets in USDT is actually much riskier than when our assets were in USD. Personally, I prefer USD if forced to choose one of these two assets.

USDT cannot be more stable than the dollar, for one simple reason - the stability of an object cannot be higher than what its stability provides !
It is like in reliability theory - the overall reliability of a system is the product of the reliability of its nodes.
Therefore, the very question of what is more reliable than USDT or Dollar (leaving aside the topic of the essence of the question - storage in the bank), does not make sense, because the dollar is 100% guaranteed to be secured by itself, and the stablecoin is not guaranteed to be secured by these very dollars.

posi

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Quote from: karabiber on September 09, 2023, 04:12:11 AM

You need to research the risks involved before making a decision. My preference would definitely be for USDT. The reason for this is related to the country i live in. I live in a place with high inflation and I keep most of my money in foreign currency. By accumulating USDT, i react to possible developments with a delay and therefore have the opportunity to take a position in advance.

I can earn 5-6 percent annual return with USDT, which is not possible with the foreign currency i keep in the bank. Yes, although usdt has some risks (your money is not in the bank after all and it is all about trust in the stock market), if you are in a place with high inflation and do not want to experience a negative situation against sudden exchange rate changes, you can choose usdt. If your priority is pure security, then keep your savings in the bank.

But USDT cannot be safer than USD and as I know all banks have USD savings accounts for anyone who needs one. Why don't you choose USD?
USDT is pegged to USD and sometimes there are incidents that lead to loss of peg such as dumping or manipulation in the cryptocurrency market. That's not foreign to us anymore, so holding all of our assets in USDT is actually much riskier than when our assets were in USD. Personally, I prefer USD if forced to choose one of these two assets.

bayu7adi

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Quote from: adzino on September 09, 2023, 03:02:33 AM

Depend on the situation. Someone that doesn't have access to the bank can use a stable coin to save money and use that wallet as his "personal bank account". But are people in his country/area willing to accept those stable coin? You should also know that not all stable coins are safe. Some are much riskier to hold. Like you said, look at what has happened to Terra stable coin. It crashed. Lots of people holding UST lost their money. Again, what if you want to pay for something but that person won't accept crypto currencies? It would be a hassle and slow to convert to and fro. Most people hold and use stable coin to trade and exchange coins instantly.

Absolutely, we all coexist between the traditional and modern systems. It can be quite cumbersome to store all assets in a single wallet, especially when our needs for sustaining and growing our finances require us to operate across multiple platforms. The wisest approach is to maintain a modest amount of FIAT currency.

It's preferable to have some USD in the bank, not necessarily a substantial sum, but enough to cover daily living expenses and transactions with traditional merchants. Meanwhile, stable coins can serve as the most straightforward gateway for cryptocurrency transactions, whether for investment purposes or simply purchasing BTC or Altcoins.

karabiber

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You need to research the risks involved before making a decision. My preference would definitely be for USDT. The reason for this is related to the country i live in. I live in a place with high inflation and I keep most of my money in foreign currency. By accumulating USDT, i react to possible developments with a delay and therefore have the opportunity to take a position in advance.

I can earn 5-6 percent annual return with USDT, which is not possible with the foreign currency i keep in the bank. Yes, although usdt has some risks (your money is not in the bank after all and it is all about trust in the stock market), if you are in a place with high inflation and do not want to experience a negative situation against sudden exchange rate changes, you can choose usdt. If your priority is pure security, then keep your savings in the bank.

dothebeats

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Quote from: Strongkored on September 09, 2023, 01:27:25 AM

My local currency will remain the main choice compared to stable coins, especially when talking in very large amounts, but if the choice is fiat vs Bitcoin of course Bitcoin is the choice even though it will not be above 80%, I mean however we will need fiat as a tool transactions every day so it would be nonsense to put all our money into Bitcoin.
I prefer fiat because stable coins are not as stable as imagined, their value will probably remain 1:1 with USD but the UST case should be a lesson and now BUSD will be exchanged for FDUSD, it will be safe for active Binance users who have BUSD, then what about those who hold BUSD but are not active users of Binance? they will miss out on information and this is quite dangerous for the assets they are saving.

It's true, you can always put majority of your income into Bitcoin and leave a good percentage for fiat for transactions as a lot of establishments either do not accept Bitcoin or have yet to know and understand it. This is what some of us fails tobsee, that we can have both by dividing it wisely based on our average financial transactions.

adzino

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Depend on the situation. Someone that doesn't have access to the bank can use a stable coin to save money and use that wallet as his "personal bank account". But are people in his country/area willing to accept those stable coin? You should also know that not all stable coins are safe. Some are much riskier to hold. Like you said, look at what has happened to Terra stable coin. It crashed. Lots of people holding UST lost their money. Again, what if you want to pay for something but that person won't accept crypto currencies? It would be a hassle and slow to convert to and fro. Most people hold and use stable coin to trade and exchange coins instantly.

Strongkored

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My local currency will remain the main choice compared to stable coins, especially when talking in very large amounts, but if the choice is fiat vs Bitcoin of course Bitcoin is the choice even though it will not be above 80%, I mean however we will need fiat as a tool transactions every day so it would be nonsense to put all our money into Bitcoin.
I prefer fiat because stable coins are not as stable as imagined, their value will probably remain 1:1 with USD but the UST case should be a lesson and now BUSD will be exchanged for FDUSD, it will be safe for active Binance users who have BUSD, then what about those who hold BUSD but are not active users of Binance? they will miss out on information and this is quite dangerous for the assets they are saving.

Mauser

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Quote from: _act_ on September 01, 2023, 05:33:59 AM

If you have your money in banks, you do jot have the complete control. If you save stable coins, most of them are centralized and you do not have complete control and they can fall out of peg and be lesser than the money they are pegged with they become. Example of the pegged coin was Terra Classic USD (UST) which was $1 before but now $0.01186444

If bitcoin price have increased, I can decide to convert some to USD or stable coin. Which one is better? Or is there other alternative which can be comparable with bitcoin in a way it would be independent and having full control characteristic.

In my opinion it doesn’t really make sense to hold USD alone in your bank account. Maybe it's better than your local Fiat money, but it's still only cash that is not going to produce any real returns while the interest rate is likely below the inflation rate. With inflation rates in the USA of 3-5% we need to make some kind of return with our USD holdings to not lose value in the long run. So, comparing stable coins to holding USD cash might offer advantages for more quickly converting it into other crypto currencies, but we still have the same issue of making no real returns in the meantime. When willing to take at least some risk, we could be buying government or corporate bonds with our Dollar money and make at least some returns. It all depends on how long you are planning to keep the money not invested. If it's only a few weeks then I think stable coins are a good alternative. In case you plan to keep the money in stable coins for several months, then I think buying US Dollars directly and investing it in US assets might be a better approach. The whole issue of stable coins turning out to be scams is of course another security concern where we need to keep an eye on

armanda90

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Quote from: komisariatku on September 08, 2023, 07:29:01 PM

After there was a case of Terra losing its valuation, I became worried about stablecoins, I was afraid that would happen to USDT or BUSD. If I had to choose, maybe I would prefer to keep USD in a bank account, both are centralized and if you keep USD in a bank, usually the bank will be responsible if our account is hacked, safer than stablecoins, USD valuation is also guaranteed not to collapse overnight

However, if your finances are good, and you have cash in reserve for emergencies, it is better to store it in bitcoins. Only bitcoin is decentralized and its valuation will continue to increase

For BUSD as Binance stable coins have warning delisting from exchange market and all investor who holding BUSD in Binance or dapp exchange have enough time for converting to other stable coins until early of 2024. Still frustrated with Terra Luna stable coins or UST dropped drastically until have values as shit coins. But dilemma when holding fiat in the bank we are facing inflation value in the future actually with long term holding as our money is saving fund in the future. In other side, Stable coins are promising with price progress up few percent in the future but some time many unpredictable happening with stable coins and easily got scam like UST.

I think store or saving in Bitcoin is best option than fiat or stable coins, there are not issues with bitcoin will be zero values like UST in the future and we don't get inflation values like saving fiat in the Bank.

bayu7adi

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There isn't a significant distinction between Stable Coins and FIAT currencies. Both are backed by FIAT, ultimately subject to government control. As of now, I can't fully commit to the choices you've presented, as I still require FIAT (local currency) for daily expenses. However, I find Stable Coins appealing because I prefer transacting with USDT for its simplicity and low transaction fees.

Currently, I primarily use my bank account for everyday needs and as an emergency fund for unexpected expenses. I frequently turn to Stable Coins for discretionary spending.

In essence, in my view, both currencies are essentially the same, differing mainly in their usage mechanisms. For someone like me who easily grows weary of government systems, it's more enticing to hold a small portion of my assets in the form of USDT.

komisariatku

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Quote from: _act_ on September 01, 2023, 05:33:59 AM

If you have your money in banks, you do jot have the complete control. If you save stable coins, most of them are centralized and you do not have complete control and they can fall out of peg and be lesser than the money they are pegged with they become. Example of the pegged coin was Terra Classic USD (UST) which was $1 before but now $0.01186444

If bitcoin price have increased, I can decide to convert some to USD or stable coin. Which one is better? Or is there other alternative which can be comparable with bitcoin in a way it would be independent and having full control characteristic.

After there was a case of Terra losing its valuation, I became worried about stablecoins, I was afraid that would happen to USDT or BUSD. If I had to choose, maybe I would prefer to keep USD in a bank account, both are centralized and if you keep USD in a bank, usually the bank will be responsible if our account is hacked, safer than stablecoins, USD valuation is also guaranteed not to collapse overnight

However, if your finances are good, and you have cash in reserve for emergencies, it is better to store it in bitcoins. Only bitcoin is decentralized and its valuation will continue to increase

molsewid

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Quote from: _act_ on September 01, 2023, 05:33:59 AM

I am not talking about people in United States or European countries that are spending Euro, or UK or countries like Kuwait, South Korea or Japan that their currency are not inflationary like the local currencies in countries in Africa, South America, Asia or some countries like Turkey.

The people in countries that have high inflation rate prefer to save foreign currencies like United States dollar. Stable coin was created and most people from these high inflation countries prefer to save stable coins.

If you have your money in banks, you do jot have the complete control. If you save stable coins, most of them are centralized and you do not have complete control and they can fall out of peg and be lesser than the money they are pegged with they become. Example of the pegged coin was Terra Classic USD (UST) which was $1 before but now $0.01186444

If bitcoin price have increased, I can decide to convert some to USD or stable coin. Which one is better? Or is there other alternative which can be comparable with bitcoin in a way it would be independent and having full control characteristic.

For me, I think it is better to have usdt here in us. Just like what you have said, in banks we can't completely control everything. Though crypto is still not well known, the rise of digital wallets are good now and the thing is we can sell our USDT in some CEX to our digital wallet and we can go to nearest store to cash out that money. In terms of fee, it is less than 1$ not big at all.

DrBeer

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Quote from: Balmain on September 08, 2023, 12:20:19 PM

Since dollar inflation is serious in Far Eastern countries with bad economies, states create pressures for dollar sales, and naturally, the price margin of the dollars bought and sold on the black market differs from the state's exchange rate. If you live in countries like the ones you mentioned, at least stable coins sound a little more reliable. We all remember what happened in Lebanon, people couldn't get their money from the banks. In the past, the same event took place in Turkey, many years ago, many people were victims of banks. In stable coins, at least you can control it in a decentralized way.

The problem is that there are mutually contradictory statements in your proposal. Let me explain - on the one hand you talk about the falling value of the dollar, on the other hand you say that steibles are a better solution than the dollar. But. There are 2 points here:
1.The dollar is just now recovering, unlike most other fiat currencies.
2. 99% of steiblcoins are backed by.... Yes, yes, yes - exactly by the US DOLLAR

So I recommend you to reconsider your position, or find another argumentation

Oilacris

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Quote from: Findingnemo on September 08, 2023, 01:25:34 PM

If you ask for USD or USDT then I will say USD is safer whether you keep them in a bank account or in your own vault.

For USD or BTC the answer is different and both are completely different in nature, acceptability, censorship, and everything else but since I understand the potential of BTC I will use some money on BTC but not my entire portfolio.

'Don't put all your eggs in one basket", also works with bitcoin, and considering the nature of the asset I advise no one to hold any more money than they can afford to lose in/as bitcoin.

Always mind off about the risks involved on the time that you do put up your money here on cryptospace. Putting up on Bitcoin doesnt automatically means that you are already in safe haven.
Yes, Bitcoin did really give out that kind of opportunity that you do have that full control of your funds plus you do really have the chance on making out some bucks or profits on the time that you would really be holding it or simply in talking about income or profit making opportunity which of course it isnt really that still sure despite of that huge market or community support into its existence.

Talking about choosing whether fiat or that stable coin then i would definitely say on putting or just sitting still on having fiat on my bank. I cant really be just that too confident or really that
trusting up stablecoins knowing that we do have some issues back in the past. There's no way that you could really be able to retrieve that once these coins been making up some bullshit
news or issues which is unlike with our fiat. It does have all that kind of negative kind of comment and impression towards it but hate it or love it but still we do really make
use of it in the end of the day on which this is really that the most common approach that we do have.

Findingnemo

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If you ask for USD or USDT then I will say USD is safer whether you keep them in a bank account or in your own vault.

For USD or BTC the answer is different and both are completely different in nature, acceptability, censorship, and everything else but since I understand the potential of BTC I will use some money on BTC but not my entire portfolio.

'Don't put all your eggs in one basket", also works with bitcoin, and considering the nature of the asset I advise no one to hold any more money than they can afford to lose in/as bitcoin.

Balmain

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Since dollar inflation is serious in Far Eastern countries with bad economies, states create pressures for dollar sales, and naturally, the price margin of the dollars bought and sold on the black market differs from the state's exchange rate. If you live in countries like the ones you mentioned, at least stable coins sound a little more reliable. We all remember what happened in Lebanon, people couldn't get their money from the banks. In the past, the same event took place in Turkey, many years ago, many people were victims of banks. In stable coins, at least you can control it in a decentralized way.

cafter

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Quote from: _act_ on September 01, 2023, 05:33:59 AM

If bitcoin price have increased, I can decide to convert some to USD or stable coin. Which one is better? Or is there other alternative which can be comparable with bitcoin in a way it would be independent and having full control characteristic.

if you want to convert and sit on USD for short time then you can convert it into USDT(short time because it's riskier) because when you may want to buy more BTC you no need to convert your USD to USDT to trade BTC/USDT pair.
and if you want your money safe in bank account.. then you need to convert into USD and keep them in bank.

if you also stake crypto then converting into USDT gives you 7%-10% interest rate and in bank the interest rate of USD is 5%-6%. But staking is risky.

dimonstration

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Quote from: Jating on September 08, 2023, 11:18:11 AM

But the problem is that when you sell your bitcoin and then hedge it to like stable coin or withdraw it totally in USD and save it to the bank. With that, obviously it's going to be a lose for you specially if the price of bitcoin goes up in the next coming years as we all know that the catalyst for a bull run is going to happen next year (block halving). So it's not best to put it to stable coin or even USD, in my opinion.

You can't consider a lose the money you don't earn. So if you liquidate your Bitcoin now then the price increase tomorrow is not your lose but rather just missed profit since you never get that profit realized. You will keep chasing profit that makes you unable to take profit on the right time if you consider missed profit a loss while you are currently gain with your current take profit.

There's no problem to convert your Bitcoin to stablecoin if you are already happy to its current value and want to secure it against volatility.

Jating

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Quote from: tygeade on September 07, 2023, 01:51:10 AM

Quote from: letteredhub on September 06, 2023, 06:46:48 AM

Quote from: rat03gopoh on September 01, 2023, 08:15:48 AM

If the conversion rate is high, USD in the bank is actually better. But the choice of banks in my country that allow to deposit foreign currency is very few and I think the process is more complicated than getting local currency. I personally don't want to pursue only one characteristic benefit such as complete control while ignoring other potential disadvantages. Suppose I have to incur additional exchange fees to local fiat because, using foreign currency for spending isn't permitted in my country.

To avoid incurring excessive fees through conversion into USD in a bank deposit particularly for those in countries where the dollar can't be used or accepted locally for purchasing of goods and services the best alternative should be to hold it in stable coins retaining value for your money. All you will doing is to be abreast with the market to be in touch with current issues about such stable coin.

That would still work for bitcoin as well. If you keep it in bitcoin then you could end up making a big profit when it goes up as well. If it drops, all you would lose would be 10% or so because that's how much it usually drops at most, we are at 26k or so levels, a 2.6k fall would make it go under 24k, I do not think that it will get there, which means that holding at bitcoin would be better and it could reach above 30k and if it reaches more than that and does a big bull run that is even better.

That's why it is quite important to reach those levels, we should be careful about it. I get that it is not going to be that easy, but we need to be careful for sure. It is definitely something that we could do eventually.

But that could be just paper lose? I mean if you are not selling it and just seeing your portfolio going down, then I guess if it still good in my opinion as everything is in paper.

But the problem is that when you sell your bitcoin and then hedge it to like stable coin or withdraw it totally in USD and save it to the bank. With that, obviously it's going to be a lose for you specially if the price of bitcoin goes up in the next coming years as we all know that the catalyst for a bull run is going to happen next year (block halving). So it's not best to put it to stable coin or even USD, in my opinion.

DrBeer

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Quote from: summonerrk on September 07, 2023, 12:04:46 AM

Quote from: DrBeer on September 06, 2023, 12:27:36 PM

Quote from: summonerrk on September 06, 2023, 08:20:34 AM

.....
I understand, and of course I have a specific answer to this question: the algorithm is as follows: you need to look at the bitcoin chart, if the price is high now, then you need to fix the profit and wait for a correction or a price drop. So you need to transfer some of the bitcoins to stablecoins. Not cash or bank dollars. If the price of bitcoin is low, but you need to buy it, and in no case store your savings in stablecoins. Right now, in my opinion, the price of bitcoin is neither low nor high. The situation is not certain, which means it is possible to partially purchase stablecoins (for example, USDT), and partially dollars. Any - in cash or on an electronic account.
And as you probably understood - I do not approve of "storing and saving" money. I believe that they should "work" in any situation.

Excellent clarification, which I fully support. The only thing I'm pushing:
The first part is about analyzing the situation in the crypto market. Here we have to be honest - not everyone can do it, and not everyone makes the right assessment, does not monitor the situation, and cannot make the right conclusion, and therefore the right actions. Therefore - the advice is GOOD, but not everyone will be able to use it.
Second - what you described, in some ways the same diversification. And it is right !
Third - the last point, I fully support. When money is lying "dead weight", it...spoils

Not everyone believes in technical analysis, some believe, but they think that it is very difficult. I think that from all the technical analysis, only support and resistance levels, as well as trend support lines, work. Orientation in the tracks on them does not give a great chance of success, but if you do a lot of small transactions, then a strategy with such a technical analysis will give a result. And it is better to do this during the time when the price is locked in the corridor, as it is now.
Therefore, if we return to the question of the author of the topic, now it is simply necessary to have part of the funds in the USDT.
By the way, the forum is full of smart guys who sometimes analyze the price of bitcoin and post their results. This is convenient for novices.

That's all understandable, and I agree. Except for the fact that you should make a decision based on other people's forecasts

Let's take the situation today - some people say "it will rise in price 10 times", others say "it will fall below 25,000, and there are no prospects". Whose opinion to choose ? What is "more pleasant for the soul" ?

Here you have to make your own decisions, more precisely, to analyze and draw conclusions, to make balanced decisions and moves. For example, I never give advice from the field of "buy bitcoin/sell bitcoin" - it's someone else's money, and my mistake or missed nuances can ruin someone ... So once again - any analytics should be considered as information that has some probability of happening. But it is absolutely impossible to take such information as a direct command to action

Topic: Stable coin or having USD in bank - page 3. (Read 1029 times)