Stablecoins is a good way to keep and save money or not? - page 7.

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Quote from: HeavensPro on July 23, 2022, 09:48:18 AM

What do you think about stablecoins, some scandals around them and their future? It is interesting to hear the opinion of the members of bitcointalk

Stablecoins are not a panacea in terms of saving your money. There are also high risks to losing your money: centralization, inflation, insufficient collateral, loss of peg, all of which threaten just about any stablecoin. Algorithmic stablcoins have failed and are the most dangerous of all stablecoins, and should be avoided. If you do use stablecoins, it is better with diversification across multiple blockchains, do not store all assets in one stablecoin, as they are just as dangerous as other cryptocurrencies during market turmoil.

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Quote from: LittleBitFunny on July 26, 2022, 05:13:32 PM

Quote from: dansus021 on July 24, 2022, 08:11:13 PM

i am only using stablecoin for trade futures and hold for short term for buy when market at the dip. and i am not gonna hold for long term but if you still wanna hold it keep it away from algorithm stablecoin and keep diversify to other stablecoin

You are totally right, stablecoins aren't suitable for holding for a long period of time. I keep some stablecoins as well, but for trading, waiting for market dips to buy bitcoin or altcoins, once not in use I will convert to fiat. We're here to invest, saving and holding stablecoins won't benefit us.

OP, if you want to save you should use fiat instead of stablecoin, I think in this case fiat is safer than stablecoin, because of what happened we should be more careful with stablecoins, they are not as safe as they we think.

Stable coins is just really good for trading or when you do make out active buy and sells and considering this is also a common thing for someone to make use whenever they are tending to make themselves bit safe when it comes to volatility which they do really make out some conversions from crypto to stable ones but later on when they do see some opportunity then it would be
doing vice versa.

If we do speak or talk about keeping it on our wallet for long term aspect then i would rather suggest on buying bitcoin itself because you could potentially make out profits on just
simply holding not on stable coins considering the price isnt really moving at all or in small percentage which it isnt really worth.

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Quote from: dansus021 on July 24, 2022, 08:11:13 PM

i am only using stablecoin for trade futures and hold for short term for buy when market at the dip. and i am not gonna hold for long term but if you still wanna hold it keep it away from algorithm stablecoin and keep diversify to other stablecoin

You are totally right, stablecoins aren't suitable for holding for a long period of time. I keep some stablecoins as well, but for trading, waiting for market dips to buy bitcoin or altcoins, once not in use I will convert to fiat. We're here to invest, saving and holding stablecoins won't benefit us.

OP, if you want to save you should use fiat instead of stablecoin, I think in this case fiat is safer than stablecoin, because of what happened we should be more careful with stablecoins, they are not as safe as they we think.

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Quote from: HeavensPro on July 23, 2022, 09:48:18 AM

What do you think about stablecoins, some scandals around them and their future? It is interesting to hear the opinion of the members of bitcointalk

If you manage to find a trusted, transparent, decentralized stablecoin you can save your money with such a stablecoin (it does not make such coins 100% guaranteed) just as the name implies, stablecoins will retain the value of your money during times like this because it is not as volatile as the rest of crypto.
As to the news scandal revolving around some stablecoins, not all have this issue, some are transparent and can be trusted, those are the type you should look for.

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Stablecoins are used for trading, not holding. You would not want to be caught by anything bad that could happen if ever they broke down.
It makes trading easier and that's the only purpose I could see for their existence. The other one may be the for ease in withdrawals for countries that is not accepting other cryptocurrencies.
If you want a crypto asset to HODL there are great choices instead of something that is pegged with $. I'd rather keep a fiat dollar than a crypto.

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The scandals in stable coins were a bit jarring, yes, you're right. But we see that the same thing applies to banks. Chinese banks have not given their customers their money for months, even the state has been protecting the banks. In this case, I think it's best to wait in reliable stable coins. I can also recommend that you divide the total balance in your hand into 3-4 different stable coins, I think you can minimize the risk by doing this.

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Quote from: HeavensPro on July 23, 2022, 09:48:18 AM

What do you think about stablecoins, some scandals around them and their future? It is interesting to hear the opinion of the members of bitcointalk

It would be very much helpful to us if you could have told us about more regarding the coins that you are referring as stable coins. Earlier we considered Bitcoins as one of the stable coins, as the prices were almost fix most of the time, but now the consequences are different. Similarly if you want to invest somewhere and want to yield little profits in a longer period of time, then go for stablecoins. Else if you want quick profits then regular trading will help you for sure.

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Quote from: HeavensPro on July 23, 2022, 09:48:18 AM

What do you think about stablecoins, some scandals around them and their future? It is interesting to hear the opinion of the members of bitcointalk

As answers from some member posts here, there is no guarantee that your money is safe when owning a stablecoin, I think if CBDC as developed countries think is implemented then it will be good because some countries make stable digital currencies, whereas coins are stable up to now it suffers from many unresolved issues like fiat collateral reports it has and other things, when you profit from trading it is better to switch to Fiat only, because investing in stablecoins for long term seems risky.

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Some scandals were only appearing for the stable tokens that was not being transparent about the reserved funds to backed the token, some trusted stable tokens like BUSD is very very transparent about that. It has a real business that can generate the reserve to print the stable token.
I don't know why so many people keep being skeptical about that since BUSD green listed and regulated by NYDFS

https://cryptopotato.com/binance-usd-busd-fully-backed-and-regulated-stablecoin/

It's good way to keep your money became stable but remember that since this being affected by the inflation. The price may be different anytime.

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Quote from: HeavensPro on July 23, 2022, 09:48:18 AM

What do you think about stablecoins, some scandals around them and their future? It is interesting to hear the opinion of the members of bitcointalk

- Stablecoins are important as can be said at this time, now if you want to earn here in cryptocurrency using stablecoins, maybe it's better to
choose crypto to trade in this industry, because as I see the movement is more aggressive compared to stablecoins because of volatility that
cryptocurrency has. Then if you really want this type of investment, you can also do second options on gold with my own suggestion dude.

Quote from: Doell on July 24, 2022, 04:53:21 PM

To keep money, Bitcoin remains the mainstay of investors, Stabelcoin is only intended for trading. The risk is much greater if you hold on for a long time, USDT and BUSD are currently the best as a trader medium of exchange but if you are not a trader why bother using them. The scandal that has happened has hit both investors and traders, but a trader knows the risks of the coins they hold, so the answer comes back to you personally OP. I personally think it's good but to trade whether it's short or medium term.

- We can still make money from stablecoins, but don't expect to make a lot of money in the future because the price increase in stablecoins does
not have such a strong impact for a holder to make a lot of money here, unlike crypto or altcoins, the possibility is high that we will earn a lot in
the future as long as we choose the right coins.

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Quote from: HeavensPro on July 23, 2022, 09:48:18 AM

What do you think about stablecoins, some scandals around them and their future? It is interesting to hear the opinion of the members of bitcointalk

I wouldn't recommend relying on stablecoins as a long-term solution to protect your capital, simply because they're not backed by the government. Without regulations being enforced, how can you be sure that your money won't go down the drain in an instant? What happened with Terra's stablecoin (UST) should be more than enough to avoid stablecoins in their entirety. They're only good for traders in order to avoid all of the hassles of cashing out directly to a bank account. Other than that, I'd suggest anyone to look elsewhere.

If you're keen on saving your money earned through crypto, then your best bet would be to sell your coins for cash. There's no other "safe" way you can do this. Until regulations are enforced, stablecoins will prove to be extremely-risky assets doomed to failure. Just my opinion

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Stable coins are better or worse than fiat currencies one way or another.

Better. It brings more convenience to stable coin users. Faster, traceable, public ledger and so on.
Worse. It can be over minted by teams. That means total stable coins minted can be higher than total value backed behind. In addition, what are assets backed behind are important too. UST and Luna crash is an example.
The same between stable coin and fiat currency, they are both inflationary.

I don't think stable coins are good to keep and save your money in. If you have to choose between stable coins and fiat currencies, I will choose fiat currencies, not stable coins.

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Quote from: goaldigger on July 24, 2022, 05:08:56 PM

What’s the use of investing in cryprocurrency if you will just put it on a stablecoins? Know that this coin is rare move especially on a uptrend, though there’s a tendency that they can drop as well but its not a stablecoin anymore if this is the situation. If you want to save money and earn more while savings, I suggest to go for Bitcoin just like the suggestions of many here. Don’t save for stablecoins because its not worth it.

We can only say unequivocally that stablecoins help traders and investors fix their profits in a bear market. And if you are not going to buy cryptocurrency, it is better to withdraw your funds into fiat money, which is more reliable than stablecoins, since the risk of losing the stablecoin binding to USD has become more frequent recently.

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Quote from: inanilujimi on July 25, 2022, 04:14:27 AM

We have seen one stable coin lose its value like USTC. so nothing is really safe for long term holding the coin stable. although what they offer is very promising but anything can happen with crypto.

Yes it is true but USDT, BUSD, USDC is a must trusted stable coin and I am not afraid to holding them. I always trust BUSD more and hold BUSD for my next investment. I think BUSD can save our money more then another stable coin. Because Binance is a big support of BUSD

inanilujimi

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We have seen one stable coin lose its value like USTC. so nothing is really safe for long term holding the coin stable. although what they offer is very promising but anything can happen with crypto.

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Quote from: HeavensPro on July 23, 2022, 09:48:18 AM

What do you think about stablecoins, some scandals around them and their future? It is interesting to hear the opinion of the members of bitcointalk

Well, that was supposed to be the aim of using stablecoins, to save your investment mostly when the market is falling into a Bear season but what has happened some time ago now cast some doubt if stablecoins are that safe to hold your investment for a long time. I still would use stablecoins I don't think we can totally run from them but we can look into other options of holding out the money in a long bear season if you don't want to hold all in stablecoin or better still use different stablecoins and not just one.

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i am only using stablecoin for trade futures and hold for short term for buy when market at the dip. and i am not gonna hold for long term but if you still wanna hold it keep it away from algorithm stablecoin and keep diversify to other stablecoin

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Quote from: minairia3 on July 23, 2022, 10:40:12 AM

I will tell you no, stablecoins are not good for long term holding and saving money. As a person who is seeking to save money, I recommend that you consider gold, in addition to gold being an investment, gold is a good saving due to its stable price and lack of depreciation, as compared to fiat currency.

You are right. Even though stablecoins have a quite stable price/rate, it sometimes has a bad issue related to their existence. If the project which created the stablecoins has negative issues, that stablecoin can decrease their value as well. Or even that stablecoin can be delisted from exchanges. The perfect example is TerraUSD, we all know what was happening with that stablecoin. Stablecoins don't have the same role as fiats, don't misunderstand.

Yes, converting the money to gold is a good choice, or converting it to land. Buying gold or land, are the two safest ways to keep money.

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Quote from: goaldigger on July 24, 2022, 05:08:56 PM

Quote from: HeavensPro on July 23, 2022, 09:48:18 AM

What do you think about stablecoins, some scandals around them and their future? It is interesting to hear the opinion of the members of bitcointalk

What’s the use of investing in cryprocurrency if you will just put it on a stablecoins? Know that this coin is rare move especially on a uptrend, though there’s a tendency that they can drop as well but its not a stablecoin anymore if this is the situation. If you want to save money and earn more while savings, I suggest to go for Bitcoin just like the suggestions of many here. Don’t save for stablecoins because its not worth it.

Because stable coins barely move and do not provide us with any profit so investing in stablecoins seems to be a waste of time. Your assets will also be at risk such as assets being frozen. Stablecoins are no different from bank fiat, they are entirely centralized so saving in stablecoins is not a good solution either. OP, you should consider the bitcoin hint to save for the future.

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Quote from: goaldigger on July 24, 2022, 05:08:56 PM

Quote from: HeavensPro on July 23, 2022, 09:48:18 AM

What do you think about stablecoins, some scandals around them and their future? It is interesting to hear the opinion of the members of bitcointalk

What’s the use of investing in cryprocurrency if you will just put it on a stablecoins? Know that this coin is rare move especially on a uptrend, though there’s a tendency that they can drop as well but its not a stablecoin anymore if this is the situation. If you want to save money and earn more while savings, I suggest to go for Bitcoin just like the suggestions of many here. Don’t save for stablecoins because its not worth it.

See the scenario, you are holding a token and a bear market is bound to happen. If you convert you token to stablecoin before the price crash, you are preserving the token's price value before it crashes. If the token price crashes during the downtrend in bear market, you can buy back your token at a cheaper price possibly getting the same amount of token plus the extra stable coins in hands, i.e

Price before the bear downtrend
1 token sold at $1 USDT ea
number of token = 2000
USDT acquired in conversion = 2000 USDT

Price after the bear market downtrend
1 token = 0.1 USDT
number of USDT = 2000
Reacquiring 2000 coins cost = 200USDT

Result

You will have 800 USDT and the same amount of 2000 token if you converted your token to stablecoin right before the market downtrend.

You see the possible profit if you convert token to USDT before the bear market trend?

Topic: Stablecoins is a good way to keep and save money or not? - page 7. (Read 1441 times)