Topic: Thanks to stable coins such us usdt btc not needed to correlate with real econom (Read 94 times)

Stable coins were an amazing revolutionary idea that broke the need to convert into cash dollars that required several days, but the belief that stablecoins have value, especially outside the exchanges is an illusion that will make people pay a lot of money.

I will not take the Luna coin as an example because it may be a Ponzi, but the stable coins that freeze depositors’ money even in wallets do not deserve to be called stable coins, not to mention that they are unable to maintain their stable value.

UST and past iterations would beg to differ. Most stablecoin deaths happened as a result of real economy crashes.

Yes, deaths, not crashes.

Not only are they not very different from each other (stablecoin and fiat), I would say stablecoins are far less inferior in terms of trust (which is the only thing providing value to the currencies of either fiat or stablecoin).

Much as I distrust states' benevolence, I have more faith in the promise of the US government or EU than in Circle or Tether.


Circle and Tether definitely cut from the same cloth as Wall Street too (think Circle even is a business partner with Mellon), think both have had their turn buying out ad space there anyway.

First of all, it took a lot of effort to really understand the message you are trying to pass, I am glad i was able to, and I understand English might not be your first language, so all is fine.
To add to what every one else have said, there is nothing special about stable coins aside the fact that they serve as a means through which traders can hedge their funds against high volatility, most especially when crypto prices are going down and there's a lot of fear, uncertainties and doubt, USDT, USDC, BUSD and the rest of them are all backed by the united stated dollars, which means each USDT or USDC is supposed to be equal to 1 USD at all time, and this is also to say that, when inflation hits fiat USD, it also affects crypto stable coins since its backed 1 for 1..

Take for example, there's this candy you normally buy at a price of 1 cent each which means 1 fiat USD normally buys you 100 pieces of that candy, something then happened, and inflation hit the USD and as a result, the price of that candy goes from 1 cent to 3 cents, this simply means that your 1 fiat USD can no longer buy you 100 pieces of that candy but only 33 pieces...if during this time you hold some stable coins and  you find an online shop selling that candy and accepts stable coins as payment, if you decide to patronize this online shop, don't be surprised that your 1 USDT stable coin will still afford you only 33 of that candy, same amount your fiat USD can afford you offline.

Because OP missed the absolute point of Bitcoin. From his post, his perspective is of a no-coiner's viewpoint that Bitcoin should be the same as regular fiat-currencies.


Actually wrong, OP. Bitcoin is needed not to correlate with the "real economy". It's actually needed to be a fall-back/back-up in case the cabal breaks the financial system.

And even now I heard that USDT is at $0.95.

There is literally so much opaque financial activity inside these companies minting the stablecoins that one wonders whether it is indeed a good idea to put stablecoin minting and supply in the hands of the respective central banks.

For one thing, it will not be possible to shoot up the prices of various cryptos anymore (only for them to fall down again, because remember, the "shooting-up effect" is like launching a ground missile, when [not if] it runs out of thrust, it will crash into its ground or air target).


It creates more volatility. That's not how you permanently increase the price, you do it through scarcity and continuous buying - you can't make a crypto scarce so that it reaches $40K from $10K, and then expect it to go back to $10K after falling to $20K.

There never been comparison between the two. Fiat dollar is just unit of measure for the bitcoin so that one can understand whats its worth in the real world. Idk, if you are just going to live in the crypto space then no one would care about the btc to USD conversion at all since in that rim 1 btc = 1btc formula and everything costs from few Satoshi to million or something. I mean the day it gets labelled in terms of satoshi would be the day you will find it worth nothing converting into fiat currency.

Bitcoins was never needed to be correlated with the real economy, at the end of the day we all know that 'During the wake of the pandemic when the market declined and the price fell down the price of Bitcoins was definitely not on the bottom and declining' there were people who were even able to make some profits along the way and ended up using bitcoins as a secure investment source. Therefore we cannot corelate the market condition with Bitcoins at all and we all know what happened with USDT, it was definately sad how it came down so fast, stable coin are definately an asset for trading.
I do think the economy you talk about with Bitcoins is very different from what you see in the world of cryptocurrencies. If you love stable coins so much you might as well keep usual coins like usd or GBP.

Who said that stablecoins doesn't have Catel, didn't you watch some educative post by Guy on UST collapse? USDT has also been dragged in the past with Bitfinex market manipulation.
There is nothing special about stablecoins, just a preserve of value which you can get serve what you don't expect like depeg from dollar value because they are not fully backed, USDC and BUSD haven't had any issue but still, there is nothing special about them than just a Fiat value.

Guess what dude, USDC is ran by Circle(a company), and USDT is ran by Tether/Bitfinex(a company). And both companies can't just print unlimited amounts of the stablecoin because they want to; they literally need to carefully and actively handle the supply minting and burning as to keep the peg at $1.

It is fiat and its not more likely been created by wall street and whales to have infinity all most infinity ammount of fiat kind of currency.

Dude, stablecoins (at least the legitimate backed ones like USDT and USDC) are literally just typical fiat money, just in a tokenized state. There's literally nothing special about stablecoins to the point that it has powers to magically pump up markets like you're describing. As if typical non-stablecoin fiat currencies can't pump up the stock markets.

So thanks to stablecoins btc not needed to correlate with real economy the stock markets and even real estate markets can be down since central banks rate hikes but btc dont have to follow to stock market gold or oil or other real life prices.
Even the whole economy can be down and everything bearish but whales got a lot stablecoins so they can just push up price of btc to parabolic even if world is short of liquitity and money the stablecoins and btc are whole different area.
Its not strange if we see whole world economic down even housing market fall but btc is going up like rocket.
The btc and stablecoins are different and they dont have to follow to real time economy and a lot printed money pf real fiat currency went in stable coins so we will might get situation when everybidody expecting crypto to go down but its going just more up thanks to buyers who got a lot stable coins also many traders are in stablecoins now waiting for crypto market going more down to step in.also big whales waiting and even the real economy is really down crypto can still go ATH becouse stable coins not correlated with real fiat so much....if fed hikes rates will tje stable coins will be burned equal ammount ? I dont think so in other words by holding the crypto and stablecoins you get advancheses of other players the game called:
Our life and economy and wealth and capital.

Be careful to think that matkets will go down and stay down off course stock market and gold can fall they are correlated witj real fiat currency.
But crypto have stable coins so even when all other legacy markets down crypto can do rally like one light in the dark room and then everybody will start buying it again when btc start moving up to 30k-40k+ price range so they will be buying the top of the crypto with highest price in bad economic times making all them even more poor they are and whales can drop prices down...remember stable coins are oil for crypto engine and by the time stable coins reserves been going bigger and bigger so whales got infinity power to use stable coins as bullets to shoot prices up.