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Topic: What is the ROI for a stable coin? (Read 416 times)

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August 16, 2021, 08:45:52 AM
#33
Return on investment - one of the fundamental economic indicators is based on investors and entrepreneurs to assess the effectiveness of business, financial instruments, or other assets. Since investing involves a long-term investment, a potential business angel must know how quickly the investments will pay off and what income they will bring in the future. And with wxora.com, we can grow the business. For business people, when analyzing products, ROI calculation has a special meaning. With a wide range of products or services, analysts examine each group of goods in various indicators.
legendary
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August 14, 2021, 04:33:24 PM
#32
The Stablecoin ratio will be equal to the value of the US dollar currency so there is no ROI for the stablecoin unless you invest USDT from another country's currency as the US dollar soars, we hold more USDT if the market pattern signals a decline due to FUD impact or otherwise.
Your statement is very true, because if we look at it in general or basically USDT is more suitable for storing assets because it is a cryptocurrency which is the same as saving money even though it is in digital form, but will always be safe forever.

if you're investing in stablecoin, don't expect ROI from this as this is not supposedly earning you profits when you put your funds here. the name itself says it all. if it is pegged to USD then it should always equate to 1 USD, are you going to expect that it will go up to 1.5USD? nope.
the major purpose of this type of coin is to make sure your digital asset will not be affected by the high volatility common to crypto, you are playing safe in the market when you resort to keeping your funds to stablecoin. but make sure the stablecoin you are holding has real backing of assets. otherwise, you are prone to losing also.
hero member
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August 14, 2021, 04:21:23 PM
#31
The Stablecoin ratio will be equal to the value of the US dollar currency so there is no ROI for the stablecoin unless you invest USDT from another country's currency as the US dollar soars, we hold more USDT if the market pattern signals a decline due to FUD impact or otherwise.
Your statement is very true, because if we look at it in general or basically USDT is more suitable for storing assets because it is a cryptocurrency which is the same as saving money even though it is in digital form, but will always be safe forever.
hero member
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August 14, 2021, 03:59:08 PM
#30
I think that because stablecoins are pegged to currencies like the US dollar chances are it behaves like one, and its ROI should be measured in pip value like currencies behave on the forex markets, but don't take my word for it. I believe stablecoins dont have a decent ROI hence just avoid them unless you still skeptical about them and how to make money out of them.
Don't know on whose the one would be minding about ROI on a stable coin? It doesn't really make sense considering into their movement which is only moving cents which I don't see for it to be worth

for them to make out some investment or holding because it wouldn't really be as volatile as those coins that we do knew or see into the market.

It would be more worth if you do make investment into more volatile coins rather than focusing or considering on putting your money into stable coins.It is just good for the purpose on saving up yourself
into the volatility.
hero member
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August 14, 2021, 03:48:52 PM
#29
I think that because stablecoins are pegged to currencies like the US dollar chances are it behaves like one, and its ROI should be measured in pip value like currencies behave on the forex markets, but don't take my word for it. I believe stablecoins dont have a decent ROI hence just avoid them unless you still skeptical about them and how to make money out of them.
legendary
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August 14, 2021, 03:21:35 PM
#28
Well, I think the return on investment you get in stablecoins is that your money continues to retain its dollar value even when the entire crypto market is tumbling on top each other, your money is safe with usdt or any other stable coin if you convert to it before the crash starts, investing in stablecoins with the sole purpose of getting profit Is a newbie kind of thinking, and like someone here already said, one can actually earn a small profit in holding usdt or any other stablecoin, but you have hold a lot of it, really a lot of it to make the profit made tangible.
sr. member
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August 14, 2021, 12:12:56 PM
#27
Maybe a silly question, but if the concept of a stable coin is to maintain market cap (i.e. coin price) by dynamically altering the supply and/or demand. (e.g. Tether, Ampleforth) then what is the potential for a return on investment?  For example, if USDT is always about $1 what's the upside of investing in it if the price never goes up?


there's no future with stable coins unless if you used it and pair with bitcoin or whatever crypto its that you can assure there's a good profits after all. Fyi mate stable coin is for your safety only despite of the volatility in the market .. So if you invest your money in stable coins its like you're wasting your time. Wherein even in the future there's no chance for it to makes improvement because its basing only on usd price.
full member
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August 14, 2021, 11:31:51 AM
#26
Maybe a silly question, but if the concept of a stable coin is to maintain market cap (i.e. coin price) by dynamically altering the supply and/or demand. (e.g. Tether, Ampleforth) then what is the potential for a return on investment?  For example, if USDT is always about $1 what's the upside of investing in it if the price never goes up?



Before thinking of ROI you need to be first sure of the coin you are investing in, because some projects can exit scam before they even start, and in such case, of course you have already lost. Now assuming you have bought coins like ETH last year and you are holding, by now you ought to be in profit, thus depending on how much you have invested and how much you already have now, you should be able to know your ROI.
On the other hand, stablecoins are different, as their general name goes, "stablecoins" which means they are stable, and it is in clear sense to show that, any investment in such coins (stablecoins) will not yield anything, no ROI just nothing. The only use case associated with stablecoins is just stability against the crypto volatility, and nothing more. So if you are thinking of a coin which can give you a good ROI, then just know stablecoins are not the right ones, because it is just stagnant, stable.
hero member
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June 19, 2019, 09:53:59 PM
#25
Maybe a silly question, but if the concept of a stable coin is to maintain market cap (i.e. coin price) by dynamically altering the supply and/or demand. (e.g. Tether, Ampleforth) then what is the potential for a return on investment?  For example, if USDT is always about $1 what's the upside of investing in it if the price never goes up?



Don't use Stablecoin as a handle or hope for profit and this kind of thing, because that will be difficult. Because basically stablecoin is just a backup. Only provides convenience for crypto traders. Fee if you want to exchange another BTC / ETH or coin for USD or your country's currency will give a bigger fee, so the solution is this kind stablecoin.
But that seems true for me consider about lack of audit on stable coin that makes direct pair with fiat is much better right now. Remember about we have seen so many people have problems with stable coin.
Stable can become an alternative but it will not always become the preferred way for those who are looking for stability.
full member
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June 19, 2019, 06:25:00 PM
#24
I just equated stable coin is money fiat, how you get profit although you use it for long term investment but the coin is remain stable. Have everyone felt to hold money fiat in several years? I guess it will be useless if he has intention to hold it for an investment. You have to buy land, real estate or gold in order to your money will grow in the future. So, I only weird if this question about Return of Investment when investing on stable coin, because it is not an investment place.
hero member
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June 19, 2019, 06:07:50 PM
#23
Maybe a silly question, but if the concept of a stable coin is to maintain market cap (i.e. coin price) by dynamically altering the supply and/or demand. (e.g. Tether, Ampleforth) then what is the potential for a return on investment?  For example, if USDT is always about $1 what's the upside of investing in it if the price never goes up?



The only upside is that you are hedging your funds when the price of BTC let's say is going down, sort of stopping the bleeding and losing much of your money because of the downtrend. So There are no profit to be made in a stable coin, hence the 1:1 to USD.
Another use of stable coins besides hedging against the volatility of bitcoin and altcoins is that if you live in a country where the currency is losing value every day due to inflation you can use stable coins as a hedge against them as well, that way you maintain your purchasing power while the national currency collapses, while that use is limited since the countries going through that kind of inflation are limited it is invaluable if you are in one of those countries and you are suffering the consequences of hyperinflation.
member
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June 16, 2019, 05:59:53 PM
#22
Maybe a silly question, but if the concept of a stable coin is to maintain market cap (i.e. coin price) by dynamically altering the supply and/or demand. (e.g. Tether, Ampleforth) then what is the potential for a return on investment?  For example, if USDT is always about $1 what's the upside of investing in it if the price never goes up?



Don't use Stablecoin as a handle or hope for profit and this kind of thing, because that will be difficult. Because basically stablecoin is just a backup. Only provides convenience for crypto traders. Fee if you want to exchange another BTC / ETH or coin for USD or your country's currency will give a bigger fee, so the solution is this kind stablecoin.
sr. member
Activity: 1260
Merit: 251
June 15, 2019, 08:32:12 PM
#21
Stable coins can guarantee a portfolio of high volatility, reduce risk to a minimum or also as a method of risk diversification. When I am taking a break or want to take a vacation and fear market fluctuations, I will turn my crypto assets into a stable coin. That's the benefit I get, not worrying and fearing fluctuations and high volatility.
full member
Activity: 1064
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June 15, 2019, 02:49:44 PM
#20
Maybe a silly question, but if the concept of a stable coin is to maintain market cap (i.e. coin price) by dynamically altering the supply and/or demand. (e.g. Tether, Ampleforth) then what is the potential for a return on investment?  For example, if USDT is always about $1 what's the upside of investing in it if the price never goes up?




You just would need to use it when you need to go out in cash due to the market falling and staying on the safe side. The advantage here is that is easier than cash since not all exchange support fiat.

You dont gain anything by trading on a stablecoin alone, is just something to support the trading
Ucy
sr. member
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June 15, 2019, 02:15:49 PM
#19
They may be making money from fees or something. I think DAI and some other decentralized Stablecoins pay their investors.  I can't remember how they do this now. DIA investors probably make money from something called MAKER... not sure though.
hero member
Activity: 2660
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June 15, 2019, 02:36:05 AM
#18
Maybe a silly question, but if the concept of a stable coin is to maintain market cap (i.e. coin price) by dynamically altering the supply and/or demand. (e.g. Tether, Ampleforth) then what is the potential for a return on investment?  For example, if USDT is always about $1 what's the upside of investing in it if the price never goes up?



The only upside is that you are hedging your funds when the price of BTC let's say is going down, sort of stopping the bleeding and losing much of your money because of the downtrend. So There are no profit to be made in a stable coin, hence the 1:1 to USD.
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June 15, 2019, 02:29:34 AM
#17
Maybe a silly question, but if the concept of a stable coin is to maintain market cap (i.e. coin price) by dynamically altering the supply and/or demand. (e.g. Tether, Ampleforth) then what is the potential for a return on investment?  For example, if USDT is always about $1 what's the upside of investing in it if the price never goes up?



Investing in stablecoin is not a good idea, and its not an investment as for me, because you can have nothing in profits  just a pure capital from your investment., so i would not recommend maybe investing in stable assets, as it only have stable value unlike other coins out there in the market.
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June 14, 2019, 09:45:10 PM
#16
Maybe a silly question, but if the concept of a stable coin is to maintain market cap (i.e. coin price) by dynamically altering the supply and/or demand. (e.g. Tether, Ampleforth) then what is the potential for a return on investment?  For example, if USDT is always about $1 what's the upside of investing in it if the price never goes up?


we don't call that investment. The stable coin is generated so that traders can secure the buying and selling of altcoins. When the price of altcoins suddenly drops, they can sell USDT and hold it. that is its only use.
full member
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June 14, 2019, 08:34:37 PM
#15
Stablecoins are not typically used for investment or speculative purposes because they are designed to be used as a hedge against volatility, for storing funds and for payments and you'll find there's plenty of different types to choose from pegged to different FIAT currencies
hero member
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June 13, 2019, 04:21:11 PM
#14
Maybe a silly question, but if the concept of a stable coin is to maintain market cap (i.e. coin price) by dynamically altering the supply and/or demand. (e.g. Tether, Ampleforth) then what is the potential for a return on investment?  For example, if USDT is always about $1 what's the upside of investing in it if the price never goes up?


You are only seeing the price in fiat but stable coins are not stable at all when you look at their price in bitcoin, so an easy way to profit from those coins is that when you have a strong suspicion that the market in general is going to crash then you just move your money from bitcoin and altcoins to stable coins, if you are right an the whole market collapses then you saved yourself a lot of money and now you can buy most coins for a cheap price and multiply your holdings of those coins with ease.
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