Stable coin or having USD in bank - page 8.

pooya87

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Quote from: _act_ on September 01, 2023, 06:33:59 AM

The people in countries that have high inflation rate prefer to save foreign currencies like United States dollar.

Actually a lot of them prefer gold and other assets including real estate.

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Stable coin was created and most people from these high inflation countries prefer to save stable coins.

That's stupid in my opinion. If the choice is between a centralized shitcoin called stablecoin and the US dollar, the dollar is always the choice without hesitation.
Because for starters these stablecoins are not guaranteed to be stable, they just are stable for now and can get dumped at any time. Additionally they are always centralized or have centralized attributes which makes them terrible. For example Tether can easily be frozen!
That's not true about dollar specially in cash form.

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Or is there other alternative which can be comparable with bitcoin in a way it would be independent and having full control characteristic.

Gold. I personally prefer standard government/bank issued coins. It is independent of bitcoin and also it is speculated to shoot up in 2024.

Frankolala

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Stable coin has more disadvantage than the fiat US dollar,which make it not good enough to put your funds in to prevent your funds from depreciating like your local currency. Stable coins is pegged to fiat us dollar and that is why fiat dollar is superior over stable coins. If a coin is depegged from dollar,it becomes useless in your wallet and one will run into great loss.

I will rather save in fiat usd rather than stable coins because it has been there for a very long time and it is one of the most powerful countries currency. The bank is the safest place to keep funds when it comes to a centralized system and if anything happens,the government takes responsibilities of customers funds to be refunded.

Yamane_Keto

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Calculate the gross domestic product (GDP) in your country, and through it you can know how ease and speed of converting your local currency into dollars, if you can do that in less than 12 hours during the day or less than 72 hours on the weekend, then you do not need stablecoins.

stablecoins are promises to give you $1, but there is no guarantee. unless it is difficult to obtain a dollar in your country except from the black market, and there are regulatory restrictions that limit your ability to buy and sell, and with the risk that the currency is counterfeit or received in a private place, then there is no There is a real reason to prefer stablecoins.

The possibility of the dollar being frozen in your bank account is much less than stablecoins being frozen inside your wallet or losing value.

fuguebtc

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Quote from: icalical on September 01, 2023, 07:44:19 AM

If between those two then my case, I am from Indonesia and the currency wasn't too bad, but still up and down. I would prefer to save a USD in my Bank Account rather to just hold a centralized stable-coin, the main reason is because my saving was guaranteed by the Deposit Insurance Agency, so in case something happened to the bank I suppose it would be easier for me to get my money, and fortunately my bank gives me option to save USD instead local currency.

If there are only two options for us, of course USD and banks will still be much safer than centralized exchanges as well as stablecoins pegged to USD. Stablecoins still have certain risks, they can still lose pegs at any time if the cryptocurrency market has problems or they themselves are attacked. But that will not happen with USD.

Yes, you are right, the bank can still go bankrupt but at least we have other agencies as well as the government that will bail us out. For stablecoins, nothing is certain.

Unbunplease

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In my opinion, stablecoins are better than USD in banks. You have full control over your money, you can transfer it to cryptocurrency or fiat at any time. Banks can go bankrupt at any moment, they can close your account at any moment, request documents about the origin of funds

Gozie51

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Those countries having devalued currency, they prefer to have $ in their bank because the exchange rate still favours it against the local currency at the long run but this is a knowledge open and accessible to the rich as they travel they have access to foreign currency and as they transact in their businesses.

In some countries where the local currency is down, to have access to dollar is still a problem, to open a domiciliary account to hodl USD, EURO or POUNDS is not easy in those countries. However, hodling your cash in USD is preferred and more valuable on the long run because it worth increases against the local currency if the inflation is high.

traderethereum

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What if you divert the money you want to save into gold?
It will be better because it will not be affected by any problems such as inflation.
Once you have gold, you can rent a deposit box at a bank and store your gold there.
I prefer that to deposit in the bank, whatever the currency.
But saving in USD could be an option instead of saving in stablecoins.

benalexis12

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Why even stablecoins? Why not just use Bitcoin when you have something to say when its value increases in the future? And for sure, you also believe that its value will kick in a few months from now, am I right? Because if you're just going to save, isn't it better to save Bitcoin instead of saving money in the bank via stablecoins?
I get the point you want to emphasize on this topic, because if I don't have a choice between stablecoins and USD, I would prefer Bitcoin or other altcoins that have potential in the future if we are talking about the long term .

rat03gopoh

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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.

TravelMug

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Quote from: icalical on September 01, 2023, 07:44:19 AM

If between those two then my case, I am from Indonesia and the currency wasn't too bad, but still up and down. I would prefer to save a USD in my Bank Account rather to just hold a centralized stable-coin, the main reason is because my saving was guaranteed by the Deposit Insurance Agency, so in case something happened to the bank I suppose it would be easier for me to get my money, and fortunately my bank gives me option to save USD instead local currency.

Same here mate, I'm also from a neighbouring country and I will say that I prefer to save a USD bank account here. Of course I'm into crypto, we all are, however, we don't trust those stable coins from the beginning. Tether for example has been on a lot of troubles in the beginning, just like accusations that they are running on fractional reserves. So it's better to really just to hedge if we want our crypto or our local money to USD just in case and not go to stable coins, in my opinion.

libert19

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Banks are centralized, prominent stable coins are also centralized however perk of stable coins is that they are easy to trade within the crypto ecosystem, plus most countries impose tax upon fiat-crypto/crypto-fiat conversions while not on crypto-crypto conversions, so converting to fiat appears to me an unnecessary endeavor.

Quote from: _act_ on September 01, 2023, 06:33:59 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

It was obvious Terra UST was scam, I read Twitter threads warning about it before it actually fell. People were blinded by 20% interest, had they cared to investigate it's workings, it would have opened their eyes.

Shishir99

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Quote from: Jawhead999 on September 01, 2023, 07:48:48 AM

Man, you're the first user who reply in this thread which is a same discussion Save in Stable Coin Or Save in Local Currency?

This shows how easy it is to give suggestions to others, but you get confused when you have to decide for yourself. I do not support keeping your money in a bank account due to its "I want to know everything" behavior. If I receive money from somewhere, banks ask where the funds come from. If I deposit money into my account, I still have to provide information about the source of the money. Even though I do nothing illegal, I do not like when banks want to interfere when I want to manage my money. It's a tough choice. What should I do to avoid inflation? My Average Income has not increased for the last two years. But inflation rose a lot. I am still surviving because I received my Income in USD. Previously, I was getting 88 BDT for $1, and now I get around 115 BDT for $1. So, I am getting 27 BDT for the same dollar. For now, I keep converting my Income to my local currency and spend it daily. I almost do not have any savings but what I have in Bitcoin. I accept when it falls; I get it when it goes up. I cannot rely on centralized entities. So, Bitcoin remained as my first choice at this moment.

Mate2237

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This your thread is referring to the third world countries and not only Africans. As for me I will prefer using the US dollar to use stablecoins. When you keep you money in stablecoin and the app or site crash, your money is also gone but if you keep you money in a dollar domiciliary account, you money is saved at all time. Dollar is even more appreciating than the Fiat currency so there is no need to keep funds in stablecoin.

See what happened in Nigeria few days back, a UK based Nigerian citizen was sending money to bank account every month for years, and when she came back to check her bank account and wanted to withdraw money and what she saw just $4 and the money she sent was about $100,000 and she sued the bank to court and the court admitted that the money was withdrew by someone in the bank and the court said the bank should pay the money. So if such scenario Happened in the stablecoins savings, who will pay back the money. In stablecoin you will do KYC till you will become tired.

OrangeII

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if it is a matter of long-term storage, then I will choose to store the proceeds from the sale of bitcoins that I have in USD and then store them in the bank. However, if it's just for investment turnover, I prefer to keep it in stable coins like USDT because it's more flexible to buy other cryptos.
Apart from that, if you are looking for something that is like bitcoin, but has a physical form and full control, then I suggest buying gold. Gold has full control such as storage and others, besides that gold is also easy to resell, and the price tends to rise. It's just that, if you are more inclined towards crypto, then saving bitcoin is a better thing.

_act_

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Quote from: Jawhead999 on September 01, 2023, 07:48:48 AM

In my case I hold all of my money in Bitcoin, I have not yet sell my coins, but not sure what will be when the bull run season come. If you want to hold stable coin, the best choice is DAI. But if your banks are accepting foreign currency investment, it's better than holding centralized stable coin due to not regulated.

The best is DAI if you want to have the complete control over your money, but not the best because it can still fall out of peg and lose value. DAI is backed by other stable coins and most importantly USDC. If USDC fall out of peg today, DAI will fall out of peg. If USDC becomes useless today, DAI also will become useless.

Jawhead999

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Man, you're the first user who reply in this thread which is a same discussion Save in Stable Coin Or Save in Local Currency?

In my case I hold all of my money in Bitcoin, I have not yet sell my coins, but not sure what will be when the bull run season come. If you want to hold stable coin, the best choice is DAI. But if your banks are accepting foreign currency investment, it's better than holding centralized stable coin due to not regulated.

icalical

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If between those two then my case, I am from Indonesia and the currency wasn't too bad, but still up and down. I would prefer to save a USD in my Bank Account rather to just hold a centralized stable-coin, the main reason is because my saving was guaranteed by the Deposit Insurance Agency, so in case something happened to the bank I suppose it would be easier for me to get my money, and fortunately my bank gives me option to save USD instead local currency.

m2017

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keep walking, Johnnie

Quote from: _act_ on September 01, 2023, 06:33:59 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.

I understand the problem you are voicing. For many countries with a weak national currency that loses its value due to inflation, the dollar remains a way for the local population to maintain their wealth. But money is a very poor tool for this.

Actually, I'm not very good at sorts of shit, so choosing between "Stable coin or having USD in bank" remains an unresolved dilemma for me. Why would you want to enter "USD in bank" when "keep cash" is better? In control of your funds. To be honest, the dollar looks better against stablecoins due to its longer life cycle and age, which makes it more reliable. The project that created stablecoin will cease to exist earlier than an entire country that ensures the world's use of the currency thanks to its economy.

I'm not sure that there is an alternative in nature that is similar to bitcoin, independent and possessing the characteristics of complete control. If you are willing to speculate on the price of bicoin, then you will have to risk converting it to stablecoins or usd. This can't be avoided. In fact, this is a payment for the profit that you receive.

_act_

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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.

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