USDC is not safe | Bitcointalksearch.org

Godday

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Quote from: AakZaki on May 18, 2023, 12:36:44 PM

Some stablecoins are just bullshit, but certainly not all of them. In my opinion, USDT, USDC, BUSD are still safe until now, although there are still risks, such as UST, which will eventually become useless due to the LUNA incident.
now even we still need stablecoins for Bitcoin trading pairs and that can't be denied anymore. without a Stablecoin pair you will not trade well.

I agree with you. All three stable coins are trustworthy. At least I didn't find any negative news about these three coins. And it is true that stable coins cannot be separated in crypto transactions because trading pairs with Bitcoin and altcoins are still very effective. But I will not store a lot of my assets in stable coins because as OP has started, stable coins are very risky for inflation if they face a crisis like FIAT money.

justdimin

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Quote from: mich on September 11, 2023, 04:12:24 AM

Wll I think it is safe but now we can earn more interest if we stake it on Coinbase. We will now be able to get 5 percent.
On June 15 the interest rate changed from 2 percent to 4 percent. This was because the sec did not consider the stablecoin a unregistered security.
https://cryptoslate.com/coinbase-raises-usdc-interest-rate-to-5/

That is not really that bad to be fair, I think it is quite possible to make enough money from this to live off it if you have enough money. Assuming that 1k is good enough for someone to live in most nations, we could say that yearly 12k is good enough to make and live, and if 12k is 5% of what you need to put in, that means 12x20 is the result you get, which is 240k dollars.

So, if you put in 240k dollars in USDC at Coinbase to get return, that would result with 12k a year return, which would be 1k per month and you can live off that. I know that 240k is a lot for many people, but in the crypto world that's not impossible to reach neither, it should be considered that it could end up with something quite good.

Xal0lex

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Quote from: Abiky on May 18, 2023, 05:00:09 AM

Quote from: BaeSuzy on May 16, 2023, 05:33:21 AM

In my opinion Stablecoins are bullshit and we may as well get rid of these scams with the rest of the dirty shit that went down recently. It will help to sanitize the crypto space which became 95% scam in the last several years.

Most stablecoins are centralized, so yes, it may not be worth your time and effort investing into them for the long haul. Even decentralized ones like DAI have USD reserves on a bank (which makes them partially-centralized). Any pressure from the US government in the long run could put well-known stablecoins at risk. Nothing is guaranteed to last forever, anyways.

Instead of stablecoins, why not consider cashing out for Fiat (USD)? You'd avoid losing all of your money if the stablecoin loses its peg in the long run. What will truly last are decentralized cryptocurrencies such as Bitcoin and Ethereum. When CBDCs come in, you can say goodbye to stablecoins for good. Just my thoughts Grin

I would say that all stable coins are centralized. Centralization is not always about someone controlling the issuance or the wallets of other users. Centralization can be in the issuing bank, the various pledges or securities that are involved in supporting the stable price of the stablecoin. When one of these factors is disconnected, the stablecoin often loses its peg to the dollar.

Abiky

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Quote from: mich on September 11, 2023, 04:12:24 AM

Wll I think it is safe but now we can earn more interest if we stake it on Coinbase. We will now be able to get 5 percent.
On June 15 the interest rate changed from 2 percent to 4 percent. This was because the sec did not consider the stablecoin a unregistered security.
https://cryptoslate.com/coinbase-raises-usdc-interest-rate-to-5/

Interest rates are good. But you should keep in mind that USDC is still a centralized stablecoin. There's no guarantee it will retain its USD peg forever. At least, it's a safer bet than going all in Tether (USDT). This last stablecoin had shady practices from the start (new units are created at will, the issuer is unable to prove it actually has the USD in its reserves, etc).

Its competitor (USD Coin) has managed to do pretty well in the midst of time. When several US banks collapsed during early 2023, USDC lost its peg. However, the issuer (Circle, Inc.) quickly used company funds to remediate the situation and make investors "whole again". That brought confidence into the stablecoin, leading it to where it is right now. With Coinbase behind it, I think it's going to last for quite a long time. Who knows if USDC beats USDT as the leading stablecoin in the crypto market sometime in the future? Just my thoughts Grin

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while USDC may have a more positive reputation than USDT, no stablecoin is entirely risk-free. The best way to store your stablecoins depends on your risk tolerance and your confidence in the stability of the coin and the platform you choose. It's crucial to stay informed and periodically reassess your storage strategy as the cryptocurrency landscape evolves.

mich

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Wll I think it is safe but now we can earn more interest if we stake it on Coinbase. We will now be able to get 5 percent.
On June 15 the interest rate changed from 2 percent to 4 percent. This was because the sec did not consider the stablecoin a unregistered security.
https://cryptoslate.com/coinbase-raises-usdc-interest-rate-to-5/

JunkieMiner

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In the centralization system, these all things could happen, and it is normal. As I would say that stable coins often should be used in USDT, Or BUSD pair. Mostly people uses these two coins, and very little bit use of the DAI coin now a days. Which is a risk.

Dessy88

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What the poor security system that's why won’t believe usdc. Hy your money only safe in your hand with home because bank statement can hack anytime. Crypto not safe your money even here you can earn money from spend your hand cash. So Don't hold long tram even just buy dip and sold profits that's feeling enjoy. Investment means your assets in third person hand and they can cheating anytime.

AakZaki

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Quote from: BaeSuzy on May 16, 2023, 05:33:21 AM

In my opinion Stablecoins are bullshit and we may as well get rid of these scams with the rest of the dirty shit that went down recently. It will help to sanitize the crypto space which became 95% scam in the last several years.

Some stablecoins are just bullshit, but certainly not all of them. In my opinion, USDT, USDC, BUSD are still safe until now, although there are still risks, such as UST, which will eventually become useless due to the LUNA incident.
now even we still need stablecoins for Bitcoin trading pairs and that can't be denied anymore. without a Stablecoin pair you will not trade well.

Abiky

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Quote from: BaeSuzy on May 16, 2023, 05:33:21 AM

In my opinion Stablecoins are bullshit and we may as well get rid of these scams with the rest of the dirty shit that went down recently. It will help to sanitize the crypto space which became 95% scam in the last several years.

Most stablecoins are centralized, so yes, it may not be worth your time and effort investing into them for the long haul. Even decentralized ones like DAI have USD reserves on a bank (which makes them partially-centralized). Any pressure from the US government in the long run could put well-known stablecoins at risk. Nothing is guaranteed to last forever, anyways.

Instead of stablecoins, why not consider cashing out for Fiat (USD)? You'd avoid losing all of your money if the stablecoin loses its peg in the long run. What will truly last are decentralized cryptocurrencies such as Bitcoin and Ethereum. When CBDCs come in, you can say goodbye to stablecoins for good. Just my thoughts Grin

riskarcher

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Quote from: BaeSuzy on May 16, 2023, 05:33:21 AM

In my opinion Stablecoins are bullshit and we may as well get rid of these scams with the rest of the dirty shit that went down recently. It will help to sanitize the crypto space which became 95% scam in the last several years.

only usdt is stablecoin still maintain security on their system, USDT is currently one of the most widely adopted stablecoins in the cryptocurrency ecosystem. It is supported by numerous cryptocurrency exchanges and used for trading, liquidity provision, and as a base pair for various trading pairs. USDT carries counterparty risk. Users are relying on the issuer's ability to maintain the peg to the US dollar and manage the reserves. It's essential to assess the reputation, track record, and regulatory compliance of the issuer when considering the stability and safety of USDT. Which is USDT more better than USDC and other stablecoins

BaeSuzy

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In my opinion Stablecoins are bullshit and we may as well get rid of these scams with the rest of the dirty shit that went down recently. It will help to sanitize the crypto space which became 95% scam in the last several years.

FahriZah

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This is totally my personal opinion about USDC stable coin many time many people’s confused what is the future USDC stable coin. Actually stable coin means USDC,USDT,BUSD Etc all Above the price around $1 and usdc price already huge fall and many people’s not happy with usdc i hope USDT and BUSD better for stable coin.

Abiky

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Quote from: disconnectme on May 13, 2023, 03:00:25 PM

There are no centralized stablecoins that are safe, they are even worse because the rate at which these entities track your wallet is worse than that of the normal banks, people will argue that they bring liquidity and reduce barriers of entry but the risk of using them outweigh the reward, my concern is why are these DEXes making USDC their major stablecoin, they must have been bought or stack ignorance on their path

DEXs have no other choice, especially when even the so-called decentralized stablecoins (like DAI) have USD reserves on a bank. Everything is centralized, except algorithmic stablecoins (although they're also subject to failure). There's no reason to be concerned about this, since stablecoins are just "experimental versions" of digital Fiat currencies. You get what you pay for.

If you want to be safe, just sell your crypto for cash. No need to convert to a stablecoin unless you're day trading or want to stake on "De-Fi" platforms. Government regulations will become stricter, so there's hope stablecoin issuers will take more responsibility against customer losses in the future. Maybe stablecoins will get to live alongside CBDCs for generations? Just my thoughts Grin

Xal0lex

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Quote from: Abiky on May 11, 2023, 08:40:09 AM

Quote from: Xal0lex on May 09, 2023, 11:13:25 AM

However, look at how the other known stablecoins behaved compared to USDT. USDT performed better than other coins during the market crash of 2022 and during the de-peg of USDC in 2023. No matter how they bury it, it shows in practice that it is the best, even better than DAI, which has been a complete disappointment this year. USDT proves once again that it is much more reliable than other stablecoins, no matter what great models they have for securing their reserves.

I'm curious to know how USDT managed to retain its peg even during the US banking crisis in March. Maybe it's because the issuer of the stablecoin has USD reserves on muliple banks spread throughout the world? Or maybe it's artificially "pumping" USDT's market price to keep it at $1? Whatever the issuing company is doing will be revealed in the long run. If USDT remains valued at $1 forever, then I don't see why you should avoid it in the first place.

Like it or not, regulations are coming in. Let's see if Tether will ultimately comply, or fall behind in the dust as other stablecoins take the lead. Just my opinion

I don't rule out the possibility that this price was drawn, that is, the peg was theoretical, and the rest was done by market makers to save the price from collapse. We know that most of the USDT reserves are scattered in all sorts of securities and indices, not in the fiat currency itself, so this may have some effect on similar events you mention as an example. I'm sure the big exchange players are behind the USDT price and they support the asset in every way they can as long as it benefits them in their trades.

disconnectme

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There are no centralized stablecoins that are safe, they are even worse because the rate at which these entities track your wallet is worse than that of the normal banks, people will argue that they bring liquidity and reduce barriers of entry but the risk of using them outweigh the reward, my concern is why are these DEXes making USDC their major stablecoin, they must have been bought or stack ignorance on their path

ichsan ardi

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Quote from: noormcs5 on December 11, 2022, 04:04:05 AM

Well, we all know Tether has issues and many people say that USDC is much safer than USDT which is not true according to this research.
Although this tweet is few months old but it is a moment of concern. All of these coins USDT, and USDC and even BUSD are not safe. The Algorithmic stable coins like Dai can also lose their peg against the dollar in a crisis situation.

In this situation, what can be the best way to store our stable coins Huh

https://twitter.com/CryptoInsider23/status/1542027718677504002

I personally probably won't save my assets to any stablecoin because it's the same as centralized banknotes, they're all scams in my personal view. I prefer to keep my assets in bitcoin with a cold wallet like trezor or safepal wallet because it's 100% full, we control what's more, bitcoin is limited to only 21 million coins in the world, the nature of fix can't be added anymore

Abiky

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Quote from: Xal0lex on May 09, 2023, 11:13:25 AM

However, look at how the other known stablecoins behaved compared to USDT. USDT performed better than other coins during the market crash of 2022 and during the de-peg of USDC in 2023. No matter how they bury it, it shows in practice that it is the best, even better than DAI, which has been a complete disappointment this year. USDT proves once again that it is much more reliable than other stablecoins, no matter what great models they have for securing their reserves.

I'm curious to know how USDT managed to retain its peg even during the US banking crisis in March. Maybe it's because the issuer of the stablecoin has USD reserves on muliple banks spread throughout the world? Or maybe it's artificially "pumping" USDT's market price to keep it at $1? Whatever the issuing company is doing will be revealed in the long run. If USDT remains valued at $1 forever, then I don't see why you should avoid it in the first place.

Like it or not, regulations are coming in. Let's see if Tether will ultimately comply, or fall behind in the dust as other stablecoins take the lead. Just my opinion

Xal0lex

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Quote from: Abiky on May 08, 2023, 05:26:12 AM

Not even Tether (USDT) is safe.

However, look at how the other known stablecoins behaved compared to USDT. USDT performed better than other coins during the market crash of 2022 and during the de-peg of USDC in 2023. No matter how they bury it, it shows in practice that it is the best, even better than DAI, which has been a complete disappointment this year. USDT proves once again that it is much more reliable than other stablecoins, no matter what great models they have for securing their reserves.

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Quote from: Jawhead999 on December 11, 2022, 04:17:06 AM

Quote from: noormcs5 on December 11, 2022, 04:04:05 AM

All of these coins USDT, and USDC and even BUSD are not safe. The Algorithmic stable coins like Dai can also lose their peg against the dollar in a crisis situation.

This is why I never trust in anything that link with "centralization" because of the are scam or has poor security. If you mention the risk of holding DAI is, DAI can't survive during crisis situation, then explain to me which fiat money can survive during crisis situation? Cheesy

None!

Fiat also lose it's value when crisis happen, this is why DAI need a time to adjust with the current fiat price. Actually that's a risk of holding stable coin, but it has nothing to do with a centralization risk.

yes, I agree with you that in a crisis situation everything will lose value, be it crypto or fiat, because of the crisis conditions that have changed various circumstances for the worse. so all have their respective risks in investment. and if you don't dare to take a risk then it's better to back off. and until now all stable coins are still in a safe condition.

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