Exactly, the crypto market is so volatile and that's why everything here is not stable. Due to its volatility people thinks it has a high risk but at the same time they think it has huge potential in its tremendous growth. As well USDT is more likely a stable coin as compare to crypto and that's why some of the people make their investment in USDT.
they don't invest in USDT. although still experiencing price movements in the crypto market but the ratio of movement is very low and relatively small. different from altcoin or bitcoin. they can freely experience jumps or price increases quickly. once again they do not invest in USDT. they just save their money to be safer. especially in a market that is in a downtrend. 
Topic: Stablecoins are never perfectly stable (Read 441 times)
For the real stable coins, they are actually stable to a high degree that your losses even in a great dip wont be more than 1$ which you are going to gain. It depends on the kind of stable coin you are holding.
Exactly, the crypto market is so volatile and that's why everything here is not stable. Due to its volatility people thinks it has a high risk but at the same time they think it has huge potential in its tremendous growth. As well USDT is more likely a stable coin as compare to crypto and that's why some of the people make their investment in USDT.
they don't invest in USDT. although still experiencing price movements in the crypto market but the ratio of movement is very low and relatively small. different from altcoin or bitcoin. they can freely experience jumps or price increases quickly. once again they do not invest in USDT. they just save their money to be safer. especially in a market that is in a downtrend.what will be their gain from usdt if they will invest on it , nothing but they are only going to pay for the fee upon using the exchange site . investing isnt the right term to be used but exchanging or trading can be more propriate . usd is volatile not because its here on the crypto market but because its tied on fiat money . fiats do fluctuate too . they cant be perfect when it comes to being stable but they are still the perfect fit when we want our cryptos to be stable
It's the truth, no cryptocurrency or currency is perfectly stable, including stablecoins. But the change in price of stablecoin is very tiny and it's acceptable. So stablecoin is safe to hold during a market crash. Most of stablecoins prices are pegged to USD, and you know that USD price is changing every second ( the same as others, that's why we have forex trading), so it's no way to keep stablecoin perfectly stable.
if you pay attention to stable crypto changes occur when bitcoin moves up and down. when bitcoin falls then the stable coin will increase in price. because some people sell assets and move to USDT and other stable assets. that is an old trick that is often done by investors and traders in the crypto market. its movements certainly cannot be fixed. because the value of fiat money in the world also has an exchange rate that is constantly changing.
It's the truth, no cryptocurrency or currency is perfectly stable, including stablecoins. But the change in price of stablecoin is very tiny and it's acceptable. So stablecoin is safe to hold during a market crash. Most of stablecoins prices are pegged to USD, and you know that USD price is changing every second ( the same as others, that's why we have forex trading), so it's no way to keep stablecoin perfectly stable.
For gold backed coins, they also need to maintain the amount of gold equal to the value of their issued coin or a larger escrow.
I'm interested in knowing more about this gold backed coin. Is there any verified or legit coin that is backed with gold?
Most times, I tend to consider project claiming to have their tokens backed by gold to be mischievous as there may not be any substantial means of verification to ascertain the quality and amount of gold involved.
Nobody expects stablecoins to be absolutely stable—nothing ever is.
Even if the stablecoin is pegged to the USD, EUR, JPY etc, the value of these changes over time with inflation and other macroeconomic factors which affect their purchasing power.
If stablecoins were truly stable and absolutely pegged to USD with no room for fluctuation, then I think they'd be less popular, since trading volumes would slip since arbitrageurs would no longer be interested in them.
If you want something truly stable, better design it yourself because no current system fits the criteria as you describe it.
Even if the stablecoin is pegged to the USD, EUR, JPY etc, the value of these changes over time with inflation and other macroeconomic factors which affect their purchasing power.
If stablecoins were truly stable and absolutely pegged to USD with no room for fluctuation, then I think they'd be less popular, since trading volumes would slip since arbitrageurs would no longer be interested in them.
If you want something truly stable, better design it yourself because no current system fits the criteria as you describe it.
Stablecoins like USDC and USDT are very popular as they are considered a safe haven in the event of a decline in the market as their value remains almost constant and equals almost the US dollar.
Although the Stablecoins has a great benefit in maintaining the value of the coins when the market falls, but in my opinion it is not good for trading and making profits because its fluctuations are very small and do not allow you to obtain large profits. Therefore, when trading, it is best to use volatile and unstable coins because the profits are high.
Although the Stablecoins has a great benefit in maintaining the value of the coins when the market falls, but in my opinion it is not good for trading and making profits because its fluctuations are very small and do not allow you to obtain large profits. Therefore, when trading, it is best to use volatile and unstable coins because the profits are high.
FreeStreamer what's up with you and stablecoin? Lol anyway, there is no loss holding stable coins, the lower I've seen them go is 1% loss, around 1$ to 0.99$, that's what you are going to see, stable coins works perfectly ok and thanks to them they makes trading more interesting and easy
I am contributing to this space by educating and sharing information. There is a loss holding a stablecoin. It's called inflation. Currency is not meant to stand still. Currency is meant to circulate. Currency is not a financial asset. It's a medium of exchange. The word currency itself means literally "in circulation"
Yes you are absolutely right, but the perfect thing is very difficult to find even in conventional money. I think stable coins in cryptocurrency so far like USDT or Tether can be considered stable even though they are not perfect.
however, USDT is crypto. they have an exchange rate that is sure to change with other currencies. but compared to other cryptos, maybe stable assets are excellent for traders. 
I think Stablecoins are a form of safe savings and value transfer but I advise everyone to use the dollar-backed ones because their acceptance would be practically worldwide but as a trade it doesn't work because their gains are minimal and also the chance to liquidate their assets without major losses in a bull run hold 50% of your profits in USDT for example
It's amazing, it's still a newbie but already knows how to give good advice to everyone, but you also have to know that the people here already know about stable tokens supported by the dollar, because USDT has long been born for cryptocurrency.
Yes you are absolutely right, but the perfect thing is very difficult to find even in conventional money. I think stable coins in cryptocurrency so far like USDT or Tether can be considered stable even though they are not perfect.
We can see lot of new stable coins in the market after huge bump on tether's trading volume and different coins says they are backed up by different assets.Most likely all are same and every coin has risk while holding them for long time.Also many scam coins entered into the market with the name of stable coin so don't trust every stable coin, just use the one with enough trading volume for holding your profits for short term period.
I just wondering, if bitcoin price just up and down like $9200-$9700 can we say it as stable?
I think this is what happen in stable coin or as we can say it as money fiat. The money fiat price movement only in several range like I said above unless there is a good and bad thing happened from its country, most likely its price will move a lot.
You have to compare stable coin price movement and crypto currency price movement. Like in bitcoin price movement, yesterday bitcoin price only $9200 and now its price has been traded at the range of $9400 and that thing is not stable and this thing doesn't happen in money fiat.
I think this is what happen in stable coin or as we can say it as money fiat. The money fiat price movement only in several range like I said above unless there is a good and bad thing happened from its country, most likely its price will move a lot.
You have to compare stable coin price movement and crypto currency price movement. Like in bitcoin price movement, yesterday bitcoin price only $9200 and now its price has been traded at the range of $9400 and that thing is not stable and this thing doesn't happen in money fiat.
Stable coins fluctuates, how is this a problem because the price fluctuations is not even that much, the price is not hurt with this fluctuations, they did what they are built for smoothly with no problem, If that little fluctuation is the reason why you create this post OP sorry it doesn't count
A cryptocurrency being a stablecoin does not mean that the price is literally perfectly stable. It means that there's an effort to stabilize the price as much as possible. Different stablecoins use different methods to stabilize their price. Some peg the value to some other relatively stable asset like the dollar, gold or sliver. Others attempt to stabilize the price themselves by regulating the circulating supply in relation with market capital so that the price stays stable.
For Stablecoin prices it is relatively stable, even if there is a change such as an increase in BTC prices. for Stablecoin is relatively not much change and for those who want to invest with a small risk level, they tend to choose those whose asset values will not change much in the future.
I agree that Stablecoins is not 100% perfectly stable, cryptocurrency is definitely volatile. USDT also will not always be priced at $ 1,
USDT will move to $ 0.95 or even go up to $ 1.1. It depends on supply and demand, but at least it will not move far from $ 1. Compared
to cryptocurrency that is not included stablecoins, so if the assets we want to safely store in stablecoins are still the best choice.
True! It's obvious that there has to be volatility in this market. That's why we can earn profits out of it. The "stable coins" are the coins that has the ability to be as stablest as possible compared to other coins in the market. It provides us a way to store our capital and investment when the market is too volatile. However, it has to be some fluctuations. Even with the fiat money in the real world, the exchange rate between national currencies has to be changed every minute. USDT will move to $ 0.95 or even go up to $ 1.1. It depends on supply and demand, but at least it will not move far from $ 1. Compared
to cryptocurrency that is not included stablecoins, so if the assets we want to safely store in stablecoins are still the best choice.
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FreeStreamer what's up with you and stablecoin? Lol anyway, there is no loss holding stable coins, the lower I've seen them go is 1% loss, around 1$ to 0.99$, that's what you are going to see, stable coins works perfectly ok and thanks to them they makes trading more interesting and easy
I am contributing to this space by educating and sharing information. There is a loss holding a stablecoin. It's called inflation. Currency is not meant to stand still. Currency is meant to circulate. Currency is not a financial asset. It's a medium of exchange. The word currency itself means literally "in circulation"
This is not a big deal IMHO. You are just making small things bigger. Of course there is no absolute stable in currency since explain it already that inflation affects it. But if you observe how much percentage of variance from 1$ here then you can see it's not a big deal compared on the volatility of other crypto currency. So it's safe to sat that's it really stable in crypto world.
And also the price varies up down near 1$ so it means that there's always a time that it's break even. So if we average the price, it will come up near 1$ and that's what it makes stable.
I agree that Stablecoins is not 100% perfectly stable, cryptocurrency is definitely volatile. USDT also will not always be priced at $ 1,
USDT will move to $ 0.95 or even go up to $ 1.1. It depends on supply and demand, but at least it will not move far from $ 1. Compared
to cryptocurrency that is not included stablecoins, so if the assets we want to safely store in stablecoins are still the best choice.
USDT will move to $ 0.95 or even go up to $ 1.1. It depends on supply and demand, but at least it will not move far from $ 1. Compared
to cryptocurrency that is not included stablecoins, so if the assets we want to safely store in stablecoins are still the best choice.
FreeStreamer what's up with you and stablecoin? Lol anyway, there is no loss holding stable coins, the lower I've seen them go is 1% loss, around 1$ to 0.99$, that's what you are going to see, stable coins works perfectly ok and thanks to them they makes trading more interesting and easy
I am contributing to this space by educating and sharing information. There is a loss holding a stablecoin. It's called inflation. Currency is not meant to stand still. Currency is meant to circulate. Currency is not a financial asset. It's a medium of exchange. The word currency itself means literally "in circulation"
How could a stablecoin with finite supply inflate? Could you further educate me on this?
Though I agree that in a stablecoins developers/project owner are the one keeping them stable by keeping the fund supporting the value of the said stablecoin intact so that anytime a person wanted to convert its stablecoin to some other currency, they can convert it with no to minimal losses. And as other reply stated, stablecoin is not perfect because its price tends to fluctuate a bit and in a worse scenario can even fluctuate higher
It has been reflected when tether has gone to the 0.8 level in the past. even if these were getting backed by fiat money doesn't meant it can make the price become perfectly stable. The demand and supply is still affecting it dude.
but eventually will regain its range of fluctuation in due time.
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