Topic: This is the last chance to exchange stablecoins for Bitcoin - page 3. (Read 597 times)

Well converting stablecoin especially USDC to Bitcoin is not a bad idea to avoid possible risk of losing in case bank run from customer will happened tomorrow. The tomorrow action of bank user will be the decision maker on what’s gonna happened on crypto market since USDC collapse will surely give a negative impact too on Bitcoin on short term due to the panic on crypto market.

I’m currently holding on fiat that sits on my bank account and avoid crypto as much as possible except for my initial investment on crypto that I purchased on lower price. There’s no guarantee that Bitcoin will be safe on the price dump but there’s a chance that Bitcoin will pump too if user use it as a safe haven against this stablecoin FUD.

Atleast on Bitcoin you can sleep peacefully rather than risking your money on USDC that just have a 5% profit margin when its repeg to 1$.

I thought that since the bitcoin market is currently down, I converted some stable coins to bitcoins. Some time ago I saw a news that the USDC price went up and down. But I am dependent on Bitcoin.  Circle said in a tweet on Friday that Silicon Valley Bank (SVB) has only $3.3 billion of the $40 billion in USDC reserves. The company mentions this in a blog post.  That's why I think stablecoins hold 4-5% of the dollar.  And the rest of the assets I converted into bitcoins and a small amount I mentioned in my post.  


So I want to know from you guys, am I on the wrong/right track?

Investor or trader change their cryptocurrency assets to stable coins because price going dump and the best thing is holding assets in stable coins and have higher values, but latest news many trouble with stable coins after USDC values dropped and many investor panic will the moment with USTC dropped happen with USDC?

Need transparent about stable coins nowadays with how much supply on the exchange market, we can't believing what the next stable coins will going drop after USDC dump, many possibility happen when holding stable coins is not always securing price keep stable.

totally agreed with your prediction but no one can predict the exact sentiments that the market could bring so pre-caution is necessary. therefore do not put your all assets in one go. do DCA for better profits and less loss. no doubt the market recovered after the last ban on Kraken staking and reaches between 22k to 25k and now due to the shrinking of deposits on the silicon valley market sentiments have changed which provides an opportunity to fill bags with some.

But we should keep some caution in mind before blindly putting money will lead us to nowhere. there are many newbies on this platform who could put their money in the market on your behalf and if things go wrong they will blame you so I suggest putting four magical words at the end (DYOR). There are other steps too that you should keep in mind like this SVB news provides an entry point ( best one) and many anti-crypto's used this as fuel to discourage people who are not even aware of crypto and blockchain's features. But ultimately this opens another entry door for those who did not fill their bags before.

But total self-research is also necessary before buying and if you are buying in bulk and like to hodl for a long time then suggest you should read this awesome quick compilation before getting started.
Things to keep in mind before accumulation of Bitcoin

Currently there are indeed many investors who exchange stablecoins with bitcoin, because the value of bitcoin is currently in a downturn so we must take advantage of this opportunity properly, because before the achievement of the new ATH, we must now be able to own bitcoin so that when others are getting big profits, we can also feel this, So now is a great opportunity that we can't waste, patience we really have to rely on because everything needs a process.

Yup! I think that was the worst case scenario already. And now even with a US bank going down which I just found out over the weekend, Bitcoin only slipped a bit, but that's mainly because of US dollar being strong.

It's silly to miss out on 20k, waiting for 15k, because once it goes to 30k, you already gain 1/3 of price, and we know 30k is a matter of when not if!

Do people are really excited about the release of BTC from MtGox? Might it be just another FUD or not, but it doesn't matter because we are still aware of the volatile situation of the market, it pumps and dumps for many reasons. So, if we are trusting Bitcoin since before then we have no reason why we got affected by the FUDs and worried about the future.
I still buy Bitcoin because I believe that Bullrun is coming, I can wait for it no matter how long it comes.

That is if they see this as a golden opportunity to start investing in bitcoin.
But if they are still afraid to enter the market and start buying bitcoins, they will never get started and will still think long and hard about when to start buying bitcoins.
They should really learn more about investing in bitcoins so they can see when the opportunity comes up and they can start buying bitcoins.
It takes some courage to get started and most people will start investing in bitcoin after getting solicitations from others.

Last chance, possibly not, one of the possible chances - yes.

But stablecoins will crash like this in view of different problems in future too. People need to understand the basic flawed nature of these currencies. I hope this deters people from putting in too much money in stablecoins in future. I use them mostly as an intermediary to hedge during the bull/bear retreat to be able to maximize bitcoin volumes on the other side, luckily I did not have any trades on USDC.

Sadly a lot many people want stability in the midst of volatility, while I try to reinforce that we dont necessarily need that since the yearly swing of bitcoin is <15% of opening price vs closing price, so will still continue to buy stablecoins.

Mark my words, in a few months a new stablecoin will appear and everyone will jump on that.

When there is a fud in the market as we see that USDC is depeg from the dollar, i don't think people will convert their stablecoins in bitcoin, rather the money will move out of the crypto market. We have seen this when USDC was depeg, the bitcoin price was also falling, meaning people are not interested to convert their stable coins into bitcoin.

Other than this, yes you have fiat money or stable coins , then you can convert them into bitcoins as this might be the last dip before the bitcoin price rally again towards 25k.

That's why I think holding Bitcoin is still the best option for now.  Bitcoin is in the range of 22k - 25k but in my view that Bitcoin will experience a price increase in the middle or end of 2023. I have read and analyzed some of the data I got from various sources and I think Bitcoin will not experience significant changes even though at this time the FED  do something to prevent inflation from impacting the cryptocurrency market.

I think the problem with this analysis is that you totally ignore macroeconomic conditions.
Overall, bitcoin is down because the economy is suffering, inflation is still high and FED is still hiking rates. Bitcoin's price is connected with the stock market so when it goes down, bitcoin goes down too.

So I think when you want to analyze bitcoin price and give investment advice, you should also consider macroeconomy.
Personally, I don't see any signals that bitcoin will go above $20-22k range in the close future. We all need to wait for the FED to stop raising rates and the economy getting healthier and for people to get spare money to invest in assets.

Lot of stablecoin now at depeged from one dollar which is bad since their host bank filled chapter 11 or fail to pay all. Like the recent news i think is better to convert to crypto before anything goes bad and you cant exchange your stablecoin.



https://www.coingecko.com/en/categories/usd-stablecoin

Yesteday even worse

More or less? If we exclude algorithm-based stablecoin, then all of them are centralized by all means. What surprises me more is we are trusting a bank through a company. If the company was holding our money, that would be far better but we are not trusting them but the bank lol. USDC's recent chaos is the perfect example of why we shouldn't go for a stablecoin though sometimes we get forced lol.

The whole idea of a "stable" coin is flawed because it depends on external factors which in turns creates a distortion which grows and grows until it breaks. It is the same reason pegging a fiat to another will end up the same way even when enforced by the State (if you check history, behind hyperinflation there is always a pegging). The so called "volatile" price of Bitcoin is a honest market price, as shown in the long term graphs, its a steady climb. The people who don't understand fail to realize fiat is a descent (by design, infinite emission).

So it either breaks because their reserve was too low, because someone played with the reserves, because code failed to react to external events or data came "too late", etc. Pegging always breaks sooner or later, you are simply being blindfolded from the truth, just like a PPS pool...

There are too many elements that can make a peg break, and they all do sooner or later. So its best to not peg in the first place. To add insult to injury, almost none of those "stable" coins are "tokens", meaning they don't even have their own blockchain to begin with. It is hilarious that some even peg against each other so things like Luna occur.

You could argue it was not Circle's fault the bank they choose to put their reserves failed. Of course they can fail, they do fractional reserve. Guess who also does fractional reserve? That's right, Circle. None of the badly called "stable" tokens do 1:1 and even if they did, the other external factors (like in this case, a bank failing) could hit them regardless.

Do you trust your bank? Why trust these? Don't trust, verify: Bitcoin. P2P electronic cash, no banks, no exchanges, no State. Its not a mere asset...

That means it's not the last chance, right?
All in just for the reasons above is not a good decision imo, bitcoin never closes the opportunity to go to a lower level. The news of the release of Bitcoin from Mtgox is still no updates, but I believe that at this time several media are preparing their versions of FUD and as usual the market reaction will be seen immediately.

So if the shares of BMW drop in half everyone will be selling his car?  
Customers choosing to withdraw money are not doing so looking at the shares, and shares did tumble exactly because the bank failed to secure enough liquidity, so it's the opposite way around.


The chances are not only high the chances are 100%, because if everyone buys then there is going to be a maximum cash inflow that will for sure make the price go beyond the previous ATH at least. The problem is, if everyone buys, what do they buy since nobody sells?


And, you have guys on twitter claiming to buy as it's the easiest 11% you can make!
Saw that while Luna was cashing down also, so not surprised even a bit.

A bit oversimplified but yes. There are a lot of other issues, but that is the one that caused the implosion so to speak.

If you are driving fast, on a wet road, with bald tires and bad suspension, did that pothole really cause the crash?

does it really matter? People will keep putting money into the next big thing. From what I read even if USDC does take a hit from this from what I read they do have other insurance but getting accurate info now is kind of difficult.

-Dave

to be more specific to the explanation

SVB privately invested customer balance into treasury bonds at 1%

when the bank run occured/started. SVB had to sell the treasury bonds to liquidate the bonds back into fiat to then honour withdrawals of SVB customer fiat balance

the big problem is that the bonds market have ample bonds at higher % to trade. so no one wants the 1% bonds. thus SVB had to sell them at a loss to liquidate them
meaning SVB did not get 1:1 value of bonds. thus made a loss meaning their SVB customer balance is no longer 1:1 of available fiat

USDC is currently loosing it's peg and is around 8% down at the time of writing...