I am also still confused about the use of Stablecoin itself. Because if you want to keep your assets safe from falling prices, it's better to keep FIAT. Why must be converted to Stablecoin?
If the reason is for faster delivery to someone on the other side of the earth, I think XLM can do that better than having to save stalbecoin.
Topic: With this possibly upcoming crisis in mind... - page 2. (Read 529 times)
With this possibly upcoming crisis in mind, what you guys think about investing in stable coins standardised with fiats?
Is is even a thing, that they will sink like a stone, just like fiats will? Are there any mechanisms that can protect such stablecoins?
Or maybe, I have a misconception of the reasons for their existence and nobody is actually hoarding st.coins?
Is is even a thing, that they will sink like a stone, just like fiats will? Are there any mechanisms that can protect such stablecoins?
Or maybe, I have a misconception of the reasons for their existence and nobody is actually hoarding st.coins?
Well, if fiat currencies sink, most/all stablecoins will definitely sink with them unless they are not really pegged to fiat or are scams.
I guess we need some creative minds to create some sort of stablecoins that are pegged to other things that wouldn't be too affected by such crisis. I have different things in mind for this but haven't really researched into them, to understand how they react during global crisis.
I think cryptosphere should have different options and not just stablecoins that are pegged to fiat currencies
With this possibly upcoming crisis in mind, what you guys think about investing in stable coins standardised with fiats?
Is is even a thing, that they will sink like a stone, just like fiats will? Are there any mechanisms that can protect such stablecoins?
Or maybe, I have a misconception of the reasons for their existence and nobody is actually hoarding st.coins?
While there are hundreds of other coins to invest in the market, why invest in stable coins? The cash you have in your pocket is more reliable than them. They are backed up with the money you invest in them. It seems that they have systems to protect it for now, but that is not collateral to the next days. I think it is best to stay away from stablecoins. Is is even a thing, that they will sink like a stone, just like fiats will? Are there any mechanisms that can protect such stablecoins?
Or maybe, I have a misconception of the reasons for their existence and nobody is actually hoarding st.coins?
If that stable coin is backed in any fiat currency, like in USDT(Tether) is backed by US Dollar (as they said), then it is almost the same with fiat US DOLLAR.
Since most of the stable coins is pegged with US DOLLAR, then for sure if the fiat currency will lost some value, then their digital stable coin here in cryptocurrency will also lost in value.
Truth here. Since most of the stable coins is pegged with US DOLLAR, then for sure if the fiat currency will lost some value, then their digital stable coin here in cryptocurrency will also lost in value.
Why would you waste effort converting it to USDT if it just the same as having USD?
For what purpose? USD goes down and so does USDT. It is just the same converted into an internet money.
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That's why some stable coins said that they are totally backed with those national currency. And also it's much secure since it uses blockchain technology.
That's what I can see the reason why stable coin is here.
I don't think I want to invest in stable coins at this time because I see the market is not in the downtrend. The market still trying to survive, and from that, I want to try to make a profit from many coins. If we invest in stable coins, we cannot make a bigger profit as the moving of stable coins is not too fast as the other coins.
Invest in stable coins is work if the market in a downtrend so we can save the amount of money while we are waiting the price reaches the bottom price.
Invest in stable coins is work if the market in a downtrend so we can save the amount of money while we are waiting the price reaches the bottom price.
With this possibly upcoming crisis in mind, what you guys think about investing in stable coins standardised with fiats?
Is is even a thing, that they will sink like a stone, just like fiats will? Are there any mechanisms that can protect such stablecoins?
Or maybe, I have a misconception of the reasons for their existence and nobody is actually hoarding st.coins?
Is is even a thing, that they will sink like a stone, just like fiats will? Are there any mechanisms that can protect such stablecoins?
Or maybe, I have a misconception of the reasons for their existence and nobody is actually hoarding st.coins?
It is not a good investment for traders 'cause it has low profit than decentralized cryptocurrencies. Although it has a low probability of sinking unlike crypto. Well it is good for payment but for long term investment it is not. Since decentralized cryptocurrencies are bound to burst it is much better to invest on crypto for something sky-rocketted profit. In the end cryptocurrencies doesn't represents any true value.
Investing in a stable coin which is standardized in FIAT in my opinion will be very safe for now, because the price will follow the FIAT currency like USDT which follows the USD price. Stable coins are intended to bridge the cryptocurrency with FIAT and prices must be stable. For the current crypto market crisis the choice of investing in stable coins is not bad, compared to investing in crypto coins whose prices cannot be predicted and prices are very volatile.
If that stable is backed in any fiat currency, like in USDT(Tether) is backed by US Dollar (as they said), then it is almost the same with fiat US DOLLAR.
Since most of the stable coins is pegged with US DOLLAR, then for sure if the fiat currency will lost some value, then their digital stable coin here in cryptocurrency will also lost in value.
Since most of the stable coins is pegged with US DOLLAR, then for sure if the fiat currency will lost some value, then their digital stable coin here in cryptocurrency will also lost in value.
Truth here.
Why would you waste effort converting it to USDT if it just the same as having USD?
For what purpose? USD goes down and so does USDT. It is just the same converted into an internet money.
I would rather use it for trading against bitcoin or altcoins rather than keeping it.
It is not worth the HODL for me. I would stick with bitcoin instead having a larger chance to grow if they use it as an escape pod to protect their money.
With this possibly upcoming crisis in mind, what you guys think about investing in stable coins standardised with fiats?
Is is even a thing, that they will sink like a stone, just like fiats will? Are there any mechanisms that can protect such stablecoins?
Or maybe, I have a misconception of the reasons for their existence and nobody is actually hoarding st.coins?
I've only ever used stablecoins that have been tied to the USD dollar for trading bitcoin when the market is changing a lot, for example I was able to use it to preserve my assets when BTC dropped from 20,000Is is even a thing, that they will sink like a stone, just like fiats will? Are there any mechanisms that can protect such stablecoins?
Or maybe, I have a misconception of the reasons for their existence and nobody is actually hoarding st.coins?
I don't think there's a lot of other uses of it, it was way easier for me to move my funds to USDT instead of moving it to actual fiat currencies.
I don't believe in them at all, they are way too centralised in a market that should be decentralized.
I believe that stable coins are needed only for traders in order to always have a safety pillow for the ability to place an order at lower levels. but stable coins as a means of payment are not needed to the cryptocurrency industry
Yes. It cushions the volatility of trade and can be used to store value but the proliferation of stable coins is what scares me the most. The last time I counted, they numbered to over 23. All serving the crypto market which has not done alot of increas in the last couple of months
Today i was reading somewhere that G20 has been considering comprehensive policy about stable coins, if they do legalize and regularize them soon i think sooner or later crypto is coming to the mainstream as well because stablecoins are also crypto form of fiat/money so next step will definitely be crypto adoption.
With this possibly upcoming crisis in mind, what you guys think about investing in stable coins standardised with fiats?
Is is even a thing, that they will sink like a stone, just like fiats will? Are there any mechanisms that can protect such stablecoins?
Or maybe, I have a misconception of the reasons for their existence and nobody is actually hoarding st.coins?
Is is even a thing, that they will sink like a stone, just like fiats will? Are there any mechanisms that can protect such stablecoins?
Or maybe, I have a misconception of the reasons for their existence and nobody is actually hoarding st.coins?
I honestly do not believe in stablecoins solely based on the fact that it adds another layer of centralisation to fiat.
Fiat itself is already created by a centralised entity, and its intrinsic value is zero or close to it. Yet, people seem to blindly trust in it and create stablecoins that reflect its value. Now, not only will you have to face the consequences of the value of fiat dropping, you'd also have to essentially trust that the stablecoin issuer is not doing anything shady in the form of fractional reserves, etc.
It's definitely not something I'd want to hold in times of economic despair, where bank runs and liquidity issues are widespread.
Since most of the stable coins is pegged with US DOLLAR, then for sure if the fiat currency will lost some value, then their digital stable coin here in cryptocurrency will also lost in value.
Yeah, that's the whole point of stable coins. Since they're pegged to a fiat currency they don't offer any protection in the case of that currency being devalued. And op, traders aren't hoarding stable coins because they really don't offer any advantage over fiat or other cryptocurrencies. They're placeholders for cash.I hear lots of talk about an upcoming crisis and I find it worrisome. It's been over 10 years since the last major crisis and the world got lucky with that one. The next one could be doomsday, but I honestly don't see that happening over the horizon.
The role of crypto in a major financial crisis really isn't clear and we won't know until it happens. What I do know is that nobody is going to be buying stable coins, because those would be *worse* than cash when cash is scarce or is losing value. Look at Venezuela. Did they turn to USDT? Nope.
The only stable coin around for investments is tether and I don't trust that. I would never touch that neither. I would rather get physical cash instead of tethers but oh what? I don't really trust that too! What is left then? Physical gold and bitcoin of course. Bitcoin is volatile but being volatile is a lot better thing than going "poof" suddenly.
I never store large amounts in crypto, even in stable coins. I use stable coins only as a trading tool and keep money in them for no more than a month. I think that the crisis will affect these coins, because they are associated with fiat money.
With this possibly upcoming crisis in mind, what you guys think about investing in stable coins standardised with fiats?
Is is even a thing, that they will sink like a stone, just like fiats will? Are there any mechanisms that can protect such stablecoins?
Or maybe, I have a misconception of the reasons for their existence and nobody is actually hoarding st.coins?
Is is even a thing, that they will sink like a stone, just like fiats will? Are there any mechanisms that can protect such stablecoins?
Or maybe, I have a misconception of the reasons for their existence and nobody is actually hoarding st.coins?
In case of a real financial crisis, not just a recession, the BTC is more like to soar in fiat valuation.
So there is no need to invest/convert to any stable coins unless you want your portfolio to lose fiat value.
However, in short-term, due to huge and sudden price drops in BTC/USD pairs, it's not a bad idea. I already converted part of my coins into TUSD and alts.
Stablecoins are for large traders, its a way to lock in your profits trading cryptos until you are ready to trade more or cash out
of course most of us wont have much use for them, 1/2 the people here dont even know how they work
the problem with USDT was it was them being their own fed, so of course they printed as they wanted, it was just too tempting for them
If USDT goes erc20 that will be massive, could collapse some major alts imo
of course most of us wont have much use for them, 1/2 the people here dont even know how they work
the problem with USDT was it was them being their own fed, so of course they printed as they wanted, it was just too tempting for them
If USDT goes erc20 that will be massive, could collapse some major alts imo
With this possibly upcoming crisis in mind, what you guys think about investing in stable coins standardised with fiats?
Is is even a thing, that they will sink like a stone, just like fiats will? Are there any mechanisms that can protect such stablecoins?
Or maybe, I have a misconception of the reasons for their existence and nobody is actually hoarding st.coins?
In the recent days the use of tether exceeds even bitcoin usage in the daily trading volume but why people using it,just to convert their profits into stable crypto to avoid fee but for the investment its not even a thing has a reason to be because its literally have the same value of fiat. Is is even a thing, that they will sink like a stone, just like fiats will? Are there any mechanisms that can protect such stablecoins?
Or maybe, I have a misconception of the reasons for their existence and nobody is actually hoarding st.coins?
I don't think there is any point in us investing in stable coins. The logic is like we are investing in fiat, there is no value at all.
What we need in investment is price or volatility. So we can take large profits in terms of movement a significant price,
if the stable coins are relatively stable the price is difficult to obtain profits. So maybe the same holding stable coins
with us saving money in the bank. I estimate that there are no investors who invest and hold stable coins.
What we need in investment is price or volatility. So we can take large profits in terms of movement a significant price,
if the stable coins are relatively stable the price is difficult to obtain profits. So maybe the same holding stable coins
with us saving money in the bank. I estimate that there are no investors who invest and hold stable coins.
Possible upcoming crisis on cryptos is nothing compared to possible global financial crisis that is predicted to be happening in near future (i am assuming you are talking about that). If the fiats fall in value, fiat based tokens will as well, so i don't understand your question or maybe i misread something. It will affect cryptos as well but still i have far more trust on gold and bitcoin at the moment for preserving the value in a long time frame.
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