There is no ROI if the crypto is a stablecoin - page 2.

yazher

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Quote from: FreeStreamer on July 07, 2020, 10:59:49 AM

I have noticed that there are many people here who do not understand that many cryptocurrencies are stablecoins. Stablecoin means that its price is designed to be as stable as possible. That means there will be no ROI from buying and hodling bunch of stablecoins. Coins with very large or infinite max supply are very likely designed to be stablecoins because that way they can stabilize the price by emitting more coins when the coin scales rapidly. Just like they do with FIAT to keep the exchange rate stable. Stablecoins are rarely perfectly stable, but they are considered stablecoins because of their effort to keep the price stable.

Stable coins are not for investment, they're just for back up with US dollar or any other national currencies. You can always use it when you are afraid of a sudden decrease in the price of the BTC or any other cryptocurrencies in the market. because once you convert it to stable coins, no matter what the result of the price of the other cryptocurrencies might be, it won't affect it at all.

sayulita

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Quote from: FreeStreamer on July 07, 2020, 10:59:49 AM

I have noticed that there are many people here who do not understand that many cryptocurrencies are stablecoins. Stablecoin means that its price is designed to be as stable as possible. That means there will be no ROI from buying and hodling bunch of stablecoins. Coins with very large or infinite max supply are very likely designed to be stablecoins because that way they can stabilize the price by emitting more coins when the coin scales rapidly. Just like they do with FIAT to keep the exchange rate stable. Stablecoins are rarely perfectly stable, but they are considered stablecoins because of their effort to keep the price stable.

No one invest in stablecoins now a days as you already mentioned that the price will always remain the same so whot would be the benefit of investing in stable coins. Although in the starting days of introduction of stablecoins the market wasn't the same, I have seen the USDT price fall and rise more than 3% from its pegged price, but that was in the days when this stable coin idea was comparatively new but now people are confident in putting their money in stable coins but not for investment purposes, only for a small amount of time for parking their money in unpredictable market conditions and when the storm passes or when they think it is the right time, then they buy back their investments.

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Quote from: trauchot on July 08, 2020, 03:32:25 AM

I use stablecoins to hold my investments there when the cryptocurrency market drops very much and it is precisely at such moments that stablecoins like tether save me and then when the cryptocurrency market begins to grow I withdraw all my investments from stablecoins.

The usage that you do is very precise, because the stablecoin token is very suitable to be used to save assets that are already in crypto when the market is in bad condition, all this is more to the way someone uses it and uses it in a more profitable direction.

It was, a good place to convert your assets to avoid the dumping season, stablecoins serves it's purpose
to allow traders to keep their investment as safe as possible.

Those who understand how things works also use this coin for there advantages as they can quickly
convert between if benefits is calling them.

ololajulo

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The term ROI doesnt look to apply to stable coin but there are case that we could see 9% price pump but this prices are expected to be temporal. Investors could be advised to store coin for a while and gain some new coin when some fund are added into the project. Most times stable coins are expected to have a fiat backup for the coin but in most cases they always have fewer amount in ban than the circulating coin which makes it easy for them to acquire more fund as they trade.

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Quote from: Pffrt on July 07, 2020, 11:16:48 AM

Does anyone invest in stablecoin? I have never heard although it's possible to get a little profit sometimes. However, people use stablecoin to fix their profit or stop their loss by converting their coin to stable. There's no other use of stablecoin then this.

Honestly I could not get what exactly OP is referring to. It name itself implies about stable then from where we can get "returns"? I guess people are getting misguided by coinmarketcap ranking. Because, coinmarketcap is their Bible and anything at top rank is being wrong interpreted as a safe-heaven opportunity for big ROI. This is the reason why people could not differentiate stable coins from rest of coins and still talking about ROI against stablecoins.

Quote from: Kotone on July 08, 2020, 04:19:00 AM

For trading it would be good but for investing its a big NO NO. You cannot be rich with stablecoins.

You can be rich if you buy and hold stablecoins in the downmarkets. For example, if you hold 1 BTC by the times of late November 2017 and selling it for 19,500 USDT and then you buy back bitcoins by the time of December 2018 for all 19500 USDT but BTC price by end of 2018 was less than $4,000. So, you will get 4+ BTC. Now you would have been richer by 4 times.

Quote from: TastyChillySauce00 on July 07, 2020, 05:44:31 PM

No volatility and all of the value will be stable, people will not do pump and dump

Only USD vale is stable but if you check stablecoin's BTC value will fluctuate along with BTC value so, it can be dumped and pumped against BTC. This kind of manipulations are happening on derived exchanges in more number compared to spot exchanges. So, we usually do not notice them.

Kotone

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I dont think you can earn if you hold stablecoin for long term and everybody knows this. But with the exemption of lending products on some stablecoin maybe you could benefit a lot but thats not high profit, Id rather invest on altcoins that are good than holding stablecoins.

For trading it would be good but for investing its a big NO NO. You cannot be rich with stablecoins.

FreeStreamer

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Quote from: trauchot on July 08, 2020, 03:32:25 AM

I use stablecoins to hold my investments there when the cryptocurrency market drops very much and it is precisely at such moments that stablecoins like tether save me and then when the cryptocurrency market begins to grow I withdraw all my investments from stablecoins.

Yes a stablecoin can be a good store of value and safe haven against an uncertain market specially if it's a gold pegged stablecoin, for the same reason that people don't store value in the dollar, you should not store value in a dollar pegged stablecoin, because they have most rapid inflation and there is only loss and no ROI whatsoever.

gretta233

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But tbh stablecoins are useful in some cases

trauchot

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I use stablecoins to hold my investments there when the cryptocurrency market drops very much and it is precisely at such moments that stablecoins like tether save me and then when the cryptocurrency market begins to grow I withdraw all my investments from stablecoins.

DDante

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Quote from: FreeStreamer on July 07, 2020, 10:59:49 AM

I have noticed that there are many people here who do not understand that many cryptocurrencies are stablecoins. Stablecoin means that its price is designed to be as stable as possible. That means there will be no ROI from buying and hodling bunch of stablecoins. Coins with very large or infinite max supply are very likely designed to be stablecoins because that way they can stabilize the price by emitting more coins when the coin scales rapidly. Just like they do with FIAT to keep the exchange rate stable. Stablecoins are rarely perfectly stable, but they are considered stablecoins because of their effort to keep the price stable.

Even if a crypto newbie mistakenly buy stablecoin to hold he or she will figure it out within days or week because price will remain the same, it's very easy to know the difference between stablecoin and non stable coins, I haven't seen anyone making such mistake before

FreeStreamer

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Quote from: aprilnot on July 07, 2020, 11:12:33 PM

I don't think anyone has a stablecoin for the long term. they only use stablecoin according to their function. so no one cares about ROI. Stablecoin is sometimes used by someone to make it easier for them to buy crypto coins in the market, without the need to transfer FIAT. there are also those who use Stablecoin to transfer funds between market crypto

Some people do have them for long term because they don't realize that they are stablecoins, because some of them have not officially announced that they are making an effort to keep the price as stable as possible.

VDraci

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Stable coins are been patronized by crypto traders the most, might be whales or other and the best way to avoid volatility is exchanges other coins for stable coins, i don't believe that people will invest in stable coins without knowing that stable coins won't pump or dump in price

aprilnot

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I don't think anyone has a stablecoin for the long term. they only use stablecoin according to their function. so no one cares about ROI. Stablecoin is sometimes used by someone to make it easier for them to buy crypto coins in the market, without the need to transfer FIAT. there are also those who use Stablecoin to transfer funds between market crypto

ice18

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Stable coins are use to avoid high volatility once an asset fell in unexpected events the solution is to temporarily convert it to stable coin to avoid further losses others convert their fiat money into stable coins for safety purposes.

nasipadang

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Quote from: FreeStreamer on July 07, 2020, 10:59:49 AM

I have noticed that there are many people here who do not understand that many cryptocurrencies are stablecoins. Stablecoin means that its price is designed to be as stable as possible. That means there will be no ROI from buying and hodling bunch of stablecoins. Coins with very large or infinite max supply are very likely designed to be stablecoins because that way they can stabilize the price by emitting more coins when the coin scales rapidly. Just like they do with FIAT to keep the exchange rate stable. Stablecoins are rarely perfectly stable, but they are considered stablecoins because of their effort to keep the price stable.

Stablecoin has a different advantage than volatile coins, they are able to provide more confidence about their investments that will be safe in terms of value by providing a small risk of loss. In this world there are many people who have different goals for an investment, so you have to know that investing is not only chasing profits, there are also those who want a future where there is no risk of lost prices. And I'm sure there are many different developers, where one side develops a stable coin and the other develops technology and other types of coins. So no need to worry about your thoughts about all coins will become stable, because it is difficult to happen.

lienfaye

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Those who will buy stable coin as an investment might not take their time to gain knowledge first on what crypto is profitable and just buy random coins that seems good. Its not the right coin for holding because the price is not fluctuating.

On the other side some traders are switching to stable coin to avoid further losses and buy back once the value is acceptable to engage again.

zero714309

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Quote from: tabas on July 07, 2020, 11:19:36 AM

That's the right description about stable coins but it's not that many of them at all. There are actually a few of them that are popular.

Quote from: Pffrt on July 07, 2020, 11:16:48 AM

Does anyone invest in stablecoin? I have never heard although it's possible to get a little profit sometimes. However, people use stablecoin to fix their profit or stop their loss by converting their coin to stable. There's no other use of stablecoin then this.

Probably a newbie that doesn't understand it if he/she buys it, they will think that they have invested on cryptocurrencies.

You are right, sometimes there are few people who have never or lacked research into the coins that they will invest in and think about if they buy at a good price for long-term even though all of that is wrong. There are still many newbie with minimal information about stable coins.

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Quote from: SlimShadyMmp on July 07, 2020, 06:46:09 PM

I look at stable coins more like fiat and they are likely to stick to whatever coin they are tied to it USDT never increase in value price so basically is a dollar in digital token You can sell your tokens and hold the USD equivalent but then you lose any gain the market make and is just Tether

I think you forget about if crypto will be stable coin. I guess what he means related to the when crypto used the dollar as the reserved funds to backed their value and that will remove the volatility.
that means the creation of value in crypto will be based on the fiat money.

rhomelmabini

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I think there's no dumb investor/s who will invest on a stablecoin besides it's not meant to be a form of investment after all. It was designed to hold out against the market volatility we are experiencing on other crypto assets and besides this coins are backed by reserve and they if you are thinking investing in it that would be good on a declining market.

SlimShadyMmp

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I look at stable coins more like fiat and they are likely to stick to whatever coin they are tied to it USDT never increase in value price so basically is a dollar in digital token You can sell your tokens and hold the USD equivalent but then you lose any gain the market make and is just Tether

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