Topic: Stablecoins or Fiat? (Read 477 times)

Exactly. The risks of holding stablecoins are much higher than simply holding Fiat. Stablecoins are only convenient for people living in countries with a high inflation rate. The rest won't have any need to use a stablecoin, unless they want to get higher interest rates with their savings. "De-Fi" provide attractive rates for stablecoin deposits not found anywhere else. You'll have to decide what works best for you.

What matters is that you protect yourself against the volatile nature of the crypto market. As long as you win more than what you lose, there should be nothing to worry about.

     Aren't fiat and stablecoins the same thing, right? Maybe when we see that there will be a big correction in the market, we can convert it to stablecoins, and then when it returns to the rally, we can return our bitcoins, right?

     At least this way, it's pretty okay, in my opinion. It is also possible not to change it to USDT, then while the price value is falling, we are just waiting to buy when we think that the peak bottom of the reversal has been reached and we have confirmed it, then we buy again before it reverses, right?

from my own perspective I don't think that holding a Fiat currency have any advantages because holding a Fiat currency will not add any value instead of that the value will continue to depreciate so one thing I understand through holding of Fiat currency is that it will be easier for you to spend but I will acknowledge the fact that holding of cryptocurrency will add more value because it is an asset so it can neither increase or also decrease in value so this is the two advantages and disadvantages that is into holding of a cryptocurrency, me I prefer holding of cryptocurrency more than any of the option.

in the aspect of holding an altcoin for long time it will have advantages and disadvantages and for you to hold altcoin you have to make sure that you are holding the one that I have a potential and the one that is reputable in the market so not any notcoin that what to hold that is why many of us venture into disadvantages aspect of altcoin investment you must verify and understand the procedures and who is the furtherance of that particular Project before you hold.

no one can agree to hold a Fiat currency so I believe that holding a Fiat currency is something that is not totally okay to anyone who is an investor because once you hold a Fiat currency with you made appreciate it based on the country inflation holding a cryptocurrency like altcoin especially the potential ones it will give you profit in future that maybe multiple of what your invested or what you hold, so in summary you should hold what will give us increase in future.

You think people will switch from fiat to stablecoins? No chance for citizens of countries that use "healthy" currencies like the U.S dollar, Pounds, etc. Prolly people from third world countries who have shit currencies that is greatly affected by inflation and hyper inflation, they might decide to use USDT that is pegged to the U.S dollar.

That being said, USDT is very risky, it is centralized just like fiat currencies, but the institution that issues it is far less trusted than central banks that print fiat currencies. Stablecoins could be depegged and people who hodl it can lose their money in the twinkle of an eye, but fiat currencies stored in the bank is at least insured up to a certain amount.

It feels good to hold a digital currency tied to the value of real USD, when the currency of your country is worth nothing. In this case, holding a stablecoin like USDT or USDC is a much better choice. But for people already living in the US, it's best to look elsewhere. If stablecoins had some kind of insurance, they would've been a much safer bet.

One would hope there isn't another crash like the one experienced by UST (Terra/LUNA's stablecoin) a while ago. Tether is one of the high-risk stablecoins due to its shady practices. Constant money printing and lack of regular audits is a no-go for me. This is a "free market", so anyone can choose what's best for them depending on their needs. Just don't invest more than what you can't afford to lose, and there should be nothing to worry about.

personally, I would be more inclined to choose the Fiat. I think that its use will be more flexible. However, if it's a specific fund to invest in, and I'm just holding it for a while before reinvesting, then I'll choose stable coins. I often do this when market conditions are bad. I chose stable coin as a temporary asset, and after seeing the investment opportunity, I used the money. However, when I have converted crypto into Fiat, then I am ready to use the Fiat for offline purposes, whether for primary needs, or for real estate investment, or other businesses

Long-term Holding cryptos such as Bitcoin.

For short-term trading purposes stable coins such as USDT.

For cashing out the profits and wanting to hold liquidity on a long period then it's fiat.

Each has it's unique use cases and I won't confuse with one another but from an investment perspective holding crypto is the best possible way and one who hold fiat or stable coins will take hit from inflation.

Stablecoins are kinda scammy, or atleast they seem like it

My choice is the traditional Fiat currencies, and I prefer the USD to be precise. My reason: I am participating in cryptocurrency for trading and investment only, so in the absence of that, I would like my $1 to be my $1. Not the fluctuating stablecoins they claim are pegged with the USD which is not always so. Also, the risk of keeping the money I don't use in stablecoin is even higher, what if something bad happens, even with a self-custody approach? I can only risk that if I know that I will still convert the Stablecoin to other cryptocurrencies for further use. In the absence of that, I like to store my unused funds in the USD.

But of course, when it come to investment, cryptocurrency has it, unless I want to deposit in fiat and trade the financial market elsewhere. In the absence of that, it is better to buy cryptocurrencies at a low price and keep it to yield more money for me over time. With this, the risk of keeping it in crypto is still worth it for the money being made.

Of course I would support Stable coin because you stable will be less profitable and your profit or your profit loss will remain the same.  But in that case the lover that you are, will have the application or your pocket potential will be high and your mind will remain the same as the bank account.  In that case, there are many who enter Binance in a variety of ways, buying low and fearing selling high when they think they have the potential to get old.  Not only the physical possibility of the attitude, it is possible for you to lose because you bought a little bit with one dollar and the price of that token came to  7-8$ and then you lost your entire money.  Two, three, five dollars are gone, in which case you have a profit.  But I would say your stable CoinBetter reason.  Stable coin never cheat you and your profit.  will not be lost

I'll go with stablecoins right now. I am safer with stablecoins right now especially even if you are just a small retail investor, there are already a lot of networks that have cheap transaction fees, an alternative for Ethereum. And with your stablecoins, there are already a lot of decentralized finance (defi) platforms where you can earn some interest just by depositing your stablecoins.


Why is that my answer? Just recently, there's a bank locked my account with no notice about why they blocked my account, they didn't even tell me the reason, they locked my account for more than a month, see the hassle and difference it on using cryptocurrency?

I have always chosen the stablecoin USDT over the past few years because my local currency is depreciating against the USD, and USDT also offers a higher APR on Binance than bank interest rates. I don't have much reason to hold fiat, I even trust Tether more than the central bank.

Although Tether always has risks related to the reliability of the reserve evidence, I believe that is the risk we need to accept in order to have higher liquidity and an asset to take profits before the market enters the crypto winter. I only sell USDT for fiat when I need to pay bills or buy gifts for my family.

Yeah some of the banks are like that which called as acquisition. It's make sense for offline company to do that because the failed bank will be hard to sell their building and land to other people, instead if competitors want to acquire them, they can sell it immediately.

While in online company, they didn't have anything that worth to sell to the competitors.

What they can is sell their domain, so the competitors can re-direct the site to their exchanges, nothing more.

I think in time people will switch to cryptocurrency, so I am already preparing for it and keep money in TFS, plus you can also staking tokens and make money on it. So definitely crypto has more advantage over fiat.

The choice of either hodling a stablecoin or fiat is a simple one for me to make, owing to the inflation in my country. With USDT, I'm well covered. I intend to keep hodling it till the situation improves. Those who left money in the bank last year have a better half of their savings lost in devaluation because of the double digits inflation in the country.

Well, that will depend on the time of the season the market is in. It's not always rosy for cryptos. They're times when it becomes obvious not to hodl cryptos that aren't stablecoins. At such a time, it's better hodling fiat than hodling those cryptos that depreciate in value.

From what I have experienced if bank go into bankruptcy, another bank that is capable to acquire the dieing bank would bought it and sed it to one of it branch in the location. So all the customers that were in the bankruptcy bank would be automatically transfer to the new Bank. That is how it has been done which I have seen. But cryptocurrency I have not seen transfer of ownership. And when FTX collapsed all the investors funds were lost and no way to recover it. And it was a centralized exchanges so if the same then happened to Decentralized Exchange, the same thing will still happen.

But even at that people still choose stable coins over fiat Bank. And because of the charges and no value added to it but in stable coins the matter what if you keep your coins for years something must add to it and you will have profit from it.

Sincerely I would go for stablecoin, because currently my local currency has been fluctuating and I can not afford to lose to inflation.

Since the USD has been gaining a lot of value over my local currency I will love to save in USDT to cope with the current inflation problem.

For an investment purposes I prefer to go with a cryptocurrency that is volatile enough to make me profit in a long term. For sure, I wouldn't be saving any money that will not yield any profit after a very long time because it's against the rules of entrepreneurship, at every moment we must take risk to be productive enough. So it's clear that I will go for crypto for long term.

Of course. USD-backed stablecoins prove to be extremely-convenient for people living outside the US. You can virtually hold USD without the need to create a bank account in the US. In authoritarian countries, you can even use decentralized stablecoins (eg: DAI) for peace of mind. What I don't like are the huge risks involved when holding stablecoins. You'll never know if the issuing company fails to honor the USD peg or if it dumps the token all of a sudden.

With no investor protections or guarantees of any kind, you will lose everything in an instant. Therefore, it's best to balance between Fiat and stablecoins to minimize the risk of loss. Who knows how far will stablecoins go?

I know that fiat is better in terms of regulations, when the banks bankrupt, you have a way to make a complain and FDIC might recover your money. While in stable coins, either the CEX bankrupt or the token ruined, you can't do anything.

But since banks charge monthly fees and my local banks not give exact 1:1 conversion price to foreign currencies, so I choose stable coins.

I didn't hold all my assets in stablecoins because stablecoins have a lot of risks. I'm getting scared to keep assets in USDT because every week a new milliard is printed there and I wouldn't want to be a hodler when that company starts having problems.
In my country there is no problem to quickly change steiblcoins to fiat, so I take money out of the market.