Bitcoin Forum

They are not legally actual fiat
Even something happens with USA dollar or any other fiat your stable coins stay same.
The fuctuaction will be directed by bitcoin so there is no need to be them even 1:1 pegged to fiat.



Im wrong Here? 

At the same time if something happens to your stablecoin or to the company that issues it, fiat and bitcoin will remain unaffected.

What are the chances of something happening to fiat money like USD or EUR compared to something happening to some stablecoin like USDt that isn't even backed 1:1 and refused to undergo an audit?

Yes, stablecoins are not fiat money but are they better? I'd rather have bitcoin or good old cash than a promise from Tether.

Fiat is different from crypto, there is no actual fiat in crypto but there are pegged 1:1 crypto such as tether in reflect to USD. Is it legal? YES.

Stable coins and fiat are widely compared due to its low volatility status thus stablecoins are used in common scenarios such as safe haven from market volatility. They are not actual fiat but they act like a fiat in crypto world. You'll understand this thing once you started trading and use stablecoins.

In terms of USD, yes. It stays the same. But if a currency collapses such as USD, then things are quite uncertain honestly. If in that case things become very uncertain for any USD holder, imagine what a stablecoin holder would have to go through. It's like some kind of double-danger.

Stablecoins are different to fiat. It's some kind of virtual fiat, if you will. But whether the existing supply of a coin like Tether is really backed up in real USD or it's just money made out of thin air is up to your own research and trust.

You are wrong. They have no relation to bitcoin, but usdt uses it network for its transactions, similar to a token (coloured coin)

Stable coins are not fiat. Stable coins are basic loans. Tether made some tokens and said "I am selling those user for 1 usd. At anytime  I will pay back 1 usd for each usdt you bring me back"

They keep the money and give you tokens.

They are centralized, they are based in trust. They are loans.

Stable coin is far too different from fiat currency. And we know that stable coin is still a cryptocurrency. Not even recognized legally by other countries even if it is stable when it comes to price. For some countries, it is serve as a threat to their own fiat currency  but for some, they are considering and planning to make their own stable coin to boost their economy and willing to backed by their own bank.

See this for example;

- Russia's approach to welcome stablecoin (https://www.ledgerinsights.com/russian-central-bank-stablecoin-digital-ruble-cbdc/)

Value wise, stablecoins are pretty much just fiat on a blockchain. If the USD implodes in value, then of course your stablecoins(USDT/USDC/etc) does the same because it's 1:1 pegged to the USD(or it should be, at least). Nothing really much to do with BTC at all.

Stable coins are ways to digitalize fiat currencies but people must believe in stable coin companies' protocols that their stable coin amount is backed by the same amount of fiat currency. It is unknown for many reasons.

Those companies can mint more stable coins than the amount of fiat currencies they store in secured vaults, in banks, etc.

The common things they are centralized and you must trust them and take risks when they break their protocols. There are not many stable coins are decentralized. DAI from Maker is a good decentralized stable coin as I know.

This is the reason why I have doubts with USDT. We don't know if they are saying the absolute truth regarding their assets as their stablecoin is being pegged at their USD assets. If you look at the numbers of their circulating supply, about 24.33B right now (https://www.coingecko.com/en/coins/tether). Who can verify that they have such USD assets equivalent to this number if there is no third party auditor?

Stablecoins and Bitcoin doesn't really have any correlation from each other. To be honest, you don't have to think that much, just think of stablecoins (USDT, etc) as virtual fiats that you can use to buy Bitcoin or other cryptocurrencies in the market. It's based on trust (just like fiat) and pretty much just a virtual fiat.

Just don't hold it though because you never know when they are going to messed up.

Stable coin are pegged to the fiat value, so actually they are not cryptocurrency. They were created to save the local fiat value of your assets in case the market goes down. In my opinion they are only helpful when you want to check the fiat value of any cryptocurrencies otherwise I donot see any practical usage of any stable coin.

Stablecoins backed by fiat currencies should be fully backed or they can't legally represent the reserved assets. Bitcoin or any altcoins aren't correlated with stablecoins directly.

You are not wrong at all and i do agree if the stable coins are not legal as fiat but it was getting backed by the fiat currency which is legal.
The stable coin being created as a solution to fix the volatility problem and that's the main reason. A lot of parties were complaining about the volatility when they are trading, make a transaction or something else and that's why this solution already created.

yea, there some "conspiracy" about USDT but i agree to invest in bitcoin or gold rather than USDT


and yes usually im using USDT for exchange to exchange transaction because low fee and the price remain stable

Stable coins are not same as the fiat currencies at all. USDT is an example, due to several reasons, the price of each usdt can be increased or decreased. For example, 2-3 years ago price was fallen to 0.8usd for each usdt. As far as I know, there is no chance for find an usd stable-coin which is guaranteed to to be always 1:1. The stability of the stable coins usually depends on the supply and demand and the amount of liquidity the team provided to back the price.

Op, you're partially right and partially wrong. You're right that stable coins are not fiat. They are not even a digital representation of fiat, they're just tokens which are supposed to be backed up by something that would allow the price to remain stable. Let's take the most famous stable coin USDT. It was allegedly backed up 1:1 with USD, but there was no proof of it being the case. And eventually the company admitted that USDT is not backed up solely with USD, but claimed that it's backed up by other valuable things (again, there's no way to check how much it's truly backed up and by what exactly).
The part where you're wrong is that if USD falls, USDT will be okay. Since people believe that USDT is backed up by USD and the very point of USDT is to always cost $1 per coin, a collapse of dollar would make it very hard to establish the value of USDT and there would definitely be uncontrollable panic selling which would cause the price to plummet.
More interestingly, USDT is way riskier than USD. While it's not impossible for USD to suffer from hyperinflation, it's not very likely to happen. USDT, on the other hand, can explode at any point even when USD remains alright precisely because it's a highly regulated bubble currency that is not truly backed up by dollars and is basically holding up on immense funds and price regulations as well as the trust of the users.

Not legal if they don't have backup for their stable coin. But if they do and it's proven that they have the entire stable coin backed up with an asset of the provider, they shall pass the screening and will be legally operators of stable coins.
It's still 1:1 and relies on USD or the fiat currency that they work on because some are backed up by Euro. IIRC, there's one I guess.

So If I have stable coins in my wallet and something happens with  USA dollar or other fiat..
Then there is no connection between them my stable coins balance can remain same even after dollar collapse.

That's why the Circle usdc coin working on commercial transactions to develope.
Plus usdc visa cooperation
In otherwords the stable coin is not fiat currency but you can use it as a fiat currency.

Its kinda like was the Liberty Reserve wich was closed by usa authority.
But with stable coins they start to regulate and stable coins will be very useful when they are regulated and sec approved by the times when everywhere will be dollar and other fiat currency shortage.
By the time there will be dollar shortage the fed printed money will be in stable coins.
If there would be the dollar shortage all they have to do is just regulate the stable coins and give them name as CBDC That's all they got to do.

And when there is dollar shortage the assets will be cheap and no wonder why they working on Project usdc.

Sure they dont tell us this many will be against it but when time is right they give us just a little Information but not all the info with one shot...

But world is working by logic logic is Behind everything and what I said its logical




Correct me If im wrong

Also the federal reserve printing so much money that there is no actual way to know If there is more USDT in circlelation then it should.

To own usdt is like If you got 2$ you might have the purache power of 5$ its like USA dollar money printer without Control and the USDT and crypto liqutity is so high and volume so good around the world we would not even notice If there is few extra dollars what should't been there.


Who pay for that?  The honest hard working tax payers as usual even those who is not involved in crypto so If you gona pay price anyways you might just join with crypto :)  

All they need to do is to keep printing so there would be so many dollars that If they make from 2$ to 5$ nobody not gona notice this even.

The USD can literally disappear forever. Stablecoins are pegged to it and theoretically "backed up" by it, but nobody guarantees a verified, audited backup of the coins in fiat. If dollar collapses, it's probably up to the USDT devs/team whether your balance will still be there or they just run away with it.

To put it another way.. Imagine I gave you a piece of paper on which "$1" is written with a pen, and I told you that I will always have a $1 bill in my wallet as long as that piece of paper is yours. That is basically all you know: you have a piece of paper that is theoretically worth $1, although nobody could guarantee the existence of the $1 bill I promised I have in my wallet and nobody could guarantee what happens if USD collapses. It's like keeping your bucks in someone else's custody - they have control over it.

It remains $1:1 stable coin. What you're pointing is the value of it which will depreciate whenever something happens to USD.
You're determining the ratio of it through your expected value of it which won't happen. It's as usual 1:1 and the value depreciates if USD depreciates. It is common to see inflation in fiat currencies and stable coins are pegged on it so they would also be affected by inflation.

The depreciation of stable coin values can come from fiat (USD) with hyper inflation, economic depression or it can come from the stable coin if the company which launches, mints that stable coin don't have enough fiat (USD) in banks.

In theory, company claims one stable coin is pegged by one USD in bank but if the fact is one stable coin is pegged by 0.5 USD in bank. The company mints double that what they should the their reserved USD in bank, the price of that stable coin will fall half  at least. I believe in such drama, price will be crashed more than half of 1 USD.

Inflation of fiat in society is a different thing and it is not a responsibility of stable coin companies.

fiat is in real world but stable coins are here in crypto so yeah you are right . so many are worrying on stable coins but if they will only knew that stable coins are from being a fiat i dont know if they are still going to act like that , this post of yours can also be a way for them to know this fact if ever they havent figured it out yet but what i cant only agree with you when you say that stable coins are directed by the fluctuations of btc because btc is fluctuating verry high but i havent seen stable coin move like that .

You are not wrong. Stable coins are not fiat, they are just pledget to fiat, but still cryptos. It the Tether's case it's not even know how/what exactly is pledges behind.

Of course you are wrong. The dollar-backed stablecoin is essentially the same dollar, only in digital form. Yes, if the dollar depreciates, then we will see a 1: 1 ratio in the CoinMarketCap table. However, these numbers only indicate the dollar's backing of the stablecoin, not its price. The dollar price is not reflected here. The dollar in this case will be subject to inflation and its rate will fall, however, from the point of view of a stablecoin, it will remain backed by one dollar of less value.
This does not directly affect the price of bitcoin, but internally its price should rise in price over time.

Leave crypto to FIAT and it opens up all kinds of KYC bunk.  But sometimes one must take some profits off the table.  Ride a coin up and find a safe haven as it drifts back down.  Buy back in and pocket some profit.  Using BTC as an example, most trust the protocol and there is a level of confidence.  But what do you get when you sell your BTC for USDT??? What is there to trust?

Its more than a little un-nerving.

I don't see any stabilize coin in crypto usdt is just interacting as a exchange, people tend to say it as stabilized Fiat crypto.

Terra coin is very familiar I went through some articles where I see they have pegged with major currencies in the world, also their transaction fee is low as well and it is a decentralized crypto, and I think it is stable and totally independent.

I hope it's not hard to understand that stablecoins are backed by USD, i.e. there is USD behind them and Stablecoins are just masks. Imagine USD on blockchain with name "Tether". If one does, another one dies too. Your speach looks like if my PC is turned on and electricity goes off, it should remain in turned on position while there is actually no supply. Same applies to stablecoins.

Btw I was really wondering about true stablecoin backed by USD where we would pick one "normal" and after that if USD rises or falls, stablecoin will fall/rise to balance the things and remain truly stable.

Are the stable coins connected with forex currency prices?  I dont think so?

I agree that stablecoins are not actual fiat, but have the same value as fiat. So stablecoins are very useful for avoiding volatile crypto markets
and can also be used to save profits from trading. But it is not recommended to save our funds in large amounts of stablecoins. Because it is very
risky to save funds in stablecoins in the long term, besides the risk of a scam. You can't make a profit if you save money in stablecoins.

I agree that inflation isn't the responsibility of a stable coin company and what I'm saying is that if the fiat gets inflated, stable coins will follow.
And the issue with those a stable coin provider is still in question and I don't know how long will it take for them to solve it.

Its same risk to hold on btc If the btc price goes down?  
Stable coins are kind of safe way to store funds

Fiat currencies were gold backed in past eras. Cash could be exchanged for gold. Fiat printers held enough gold in reserves to match the paper money they printed. Today the united states holds tons of gold reserves in Fort Knox in an effort to back fiat. The USA also holds oil and other reserves which back the currency they issue in an emergency. The degree to which the US dollar is backed by gold, oil and other holdings however is not significant a percentage.

Stablecoins like tether are more firmly backed by US dollars, than the overwhelming majority of fiat currencies. Which opens the door to stablecoins being safer and better investment instruments for long term HODL in contrast to fiat reserve currencies like the US dollar.


Some banks choosing to hold stablecoins as collateral assets, they way they would traditionally hold gold or precious metals could speak volumes as to their potential worth. It all depends on ones views of financial engineering etc.

You are very right!!
And occ approved coins are usdt and usdc
So we can trust those 2 coins most If the Banks trust them and OCC approved

I guess so...

A stablecoin is a stabilized crypto Fiat. Not affected by the extreme votality that exists in cryptocurrency. Currently, many stablecoins have sprung up that provide benefits for holders so they are not affected when fluctuations occur in cryptocurrency. Stablecoins are also pegged to the price of precious metals such as gold or even other cryptocurrencies. Stablecoins that are made in digital form aim to imitate or duplicate stable traditional money in the form of cryptocurrency. Stablecoins will protect against crashes of local currencies so that they can move from currencies that are falling into more stable currencies and protect them from falling in value.

Isn't that obvious op? They are called crypto stablecoins for a reason. Currently, there are a decent number of stablecoins in the market.

https://cryptoslate.com/cryptos/stablecoin/

Above link displays most of them in detail. The biggest advantage of stablecoins in my opinion is the fact that we can trade FIAT based crypto stablecoins in an anonymous manner which is not possible with FIAT currencies.

the fact that the volume of these centralized and in most cases highly risky stable coins is still very high should tell us a lot of things. the most important one in my opinion is the fact that we have a lot of gamblers in the cryptocurrency scene who are only interested in maximizing their trading profit when they trade altcoins every day while increasing the speed of going in and out of altcoins or between exchanges.
it is not just the total market cap that is increasing it is also the number of these gamblers.

I think if stable coins would be fiat - price would always be equal to fiat. 1:1, and if you seen real price for stable coins they are always fluctuating. I might be wrong tho.

Stable coins are coins tied to real currencies. Yes, this makes them more reliable and convenient to use, compared to other coins that now and then jump on exchanges like rabbits. But real money can also change its value depending on the economies of countries.Such coins are convenient for buying and selling other coins due to their stability in relation to other cryptocurrencies.

For now, crypto is not as same as cash, In fact, cryptocurrency has a long way to go to replace cash. Due to the decentralized nature of cryptocurrency, it is not conducive to government management. This situation may never happen.

No. It doesn't make them more reliable or convenient. On the other hand, I would say that it makes them less trustworthy compared to other cryptocurrencies. In the case of stablecoins, some unknown individual or entity is holding the reserve funds and they issue tokens for these funds. If you own these tokens, then you don't directly own the reserve funds. It is very much possible that the individual or entity holding these funds will vanish without any warning, making the tokens completely useless.

hello everybody,
I am new to crypto but what i learnt is that any cryptocurrency is money, future money to better say, soon there would be no dollars or euro and people will spend crypto. If you'd like to invest, BTC is better but if you wanna spend tether is better cause it has less fluctuation.

Stable coins also vary in ownership. They are private, owned by several individuals or legal entities, as well as by a state or a group of states. Personal and commercial stablecoins are the most vulnerable in terms of the possibility of various negative situations and the threat of their disappearance.
 The most valuable will be stable coins of states, that is, the digitized currencies of their central banks. In relation to them, it cannot be said that this is not real money. It will be the same currency, only in digital form.

Why you're looking for something that ain't happen? if your trying to compare crypto currency into fiat it has big differences and doesn't effect each one another therefor you can assure that one country or government can't control crypto unlike fiat they can manipulate everything and the economics can be done by them. If this happens that everything will be depends on bitcoin then thats the time that bitcoin will over come those power for able to be the that stable but since it is still volatile and no one can predict the future it holds.

The stable coins price is not related to Bitcoin, therefore Bitcoin pump or dump, the stable coins price remains pegged to fiat. But stable coins
are not fiat either, because fiat and cryptocurrency are two different things. But if fiat prices drop, then the stable coins go down too, because
the price is pegged to fiat. And you are correct, not all countries legalize stable coins.

Yep, stable coins are not actual fiat. Stable coins are virtually but comprised in cryptocurrency. Fiat on the other arrow is not comprised in the currency. If we peek at the USD as a stable coin, we can glimpse that it is stable for a maximum period, such as 1: 1. But periodically we have glimpsed its fall. Although the fall was unusual. This indicates that the stable coin is not wrapped by Fiat in any way.

Like other cryptocurrencies, stablecoins are digital currencies with no physical existence, and can be traded in exchanges across the world. Many stablecoins are collateralized at a 1:1 ratio with certain fiat currencies, such as the U.S. Dollar or the Euro, which can be traded on exchanges. Backed stablecoins are subject to the same volatility and risk associated with the backing asset. If the backed stablecoin is backed in a decentralized manner, then they are relatively safe from predation, but if there is a central vault, they may be robbed, of suffer loss of confidence.

If they are actually pegged to fiat then they are much same as fiat because the value they will reflect is that of fiat, and of course they are claimed to be backed by US dollar as the case may be. Also, holding a stablecoin like USDT can be seen as holding fiat thus if anything is to happen to fiat, it will be seen in the stablecoin, thus I think stablecoins can be seen as fiat, but in this case they leverage a digital form (crypto) in order to be in line with the crypto space. In the same way, stablecoins exhibit some of the attributes of fiat, that is, they are highly centralized and controlled, which then makes them less trusted while Bitcoin on the other hand, still remains the most trusted as it is not controlled or pegged to fiat.

This is the actual meaning of fiat and cryptocurrency.

We can't just say stable coins is just like fiat, since fiat is physically obtain while cryptocurrency is digitally obtain through peer-to-peer. There is a bigger difference in security in fiat and crypto just like what you said when we are talking about centralization versus decentralization. But most people chose centralized system than decentralized system because it's the most convenient.

Well as of now and years ago, you could sell the stablecoin immediately for fiat. 


But if you had a lot of stablecoins, shouldn't you feel pretty safe though?  I mean imagine those of you with 5 figures or or more in a stable coin like usdt or usdc or pax.  I mean its still worth a dollar... just require you to sell it right?

Well isn't the issue here lot of coins you can't trade directly with fiat though?  For example, many coins you can't even trade with usdt... you have to trade against btc only.  So imagine an altcoin that can only be traded against btc or eth and not fiat nor even usdt... how do you lock in your profits then?  Well isn't usdt thus your only solution?  Thus sell the altcoin for btc...then sell it for usdt... assuming you can't go from btc to fiat?  Like imagine say binance.  I assume you sell altcoin for btc... then just send the btc to a fiat exchange like coinbase/gemini/kraken and then convert it to fiat?


But if you want to not pay an extra conversion fee... whats wrong with keeping it in usdt... until you want to sell it for fiat or buy another altcoin?

In fact, if all legal currencies can be linked to Bitcoin, and even the world can use Bitcoin for trade, the decentralized nature of Bitcoin is very important, and every Bitcoin holder wants this. one day.

you are not wrong, because it is true that whatever happens to fiat then it will not have a big impact on the crypto market. but stable the coins referred to here are coins whose exchange rate is the same as the dollar, let's call it usdt. Although the ups and downs of fiat (dollar) have no effect, and are stable coins that depend on a large crypto market such as bitcoin, in that context these coins remain stable, do not rise and fall in an extreme way.

Then it becomes unclear why the stablecoins are so stable. If they are not related to fiat, what are they then backed up and how the course is held? And the most exciting question is why these stablecoins are presented to users as one of the most reliable ways to invest?

There is truth in what you say. Stable coins are neither exactly fiat currency nor exactly cryptocurrency. In fact, according to the statements made by Tether Limited, 1 USDT is pegged on the asset corresponding to the dollar, not the dollar itself. It is possible that if the dollar collapses, your asset may be still there or vice versa.

They are connected, if USD make a dip same will happen to USDT, search for the USD price now in the market then compare it to USDT there might be some decimals that are not the same but the thing is USDT or stable coins are pegged to usd 1:1 so whenever the dollar dips or dumps the value expect that it might goes as well to usdt. It is just that usdt is virtual dollar and usd is fiat and have a physical appearance and widely adapted all over the world with no restrictions, and monitored by government.