Bitcoin Forum

Hello Crypto Fam.

So, the FSB has released a recommendation on stablecoin regulation. They are doubting the notion that stablecoins are "stable," arguing that issuers lack the necessary tools to keep their stablecoin peg at all times, implying that no stablecoin currently meets their recommendations.

This is what they said about it:

“Most existing stablecoin issuers promise (implicitly or explicitly) to maintain a stable value, typically relative to a single fiat currency. However, many of these existing stablecoins are issued by unregistered and unlicensed entities and do not have credible mechanisms to support their promise of price stability.”

What do you guys think about this? Would you recommend the use of stablecoins or they just aren't worth the risk?

Original source of the story:

https://tokenist.com/fsb-says-no-stablecoin-currently-passes-its-recommendations/

If your country has cryptocurrency legislation, then you can safely store Tether (USDT) and USD Coin (USDC) bought on the exchange, because these are the most common stablecoins. But the issuer can block your coins. Most of my savings are in DAI, because for now it is a reliable decentralized stablecoin, but I will not give you guarantees that this will not change in the future.

It is incorrect to say that stablecoins are unlicensed, unregistered, but they are considered insecure because of their centralized nature. Since it is a centralized managed by a 3rd party, holding them is not too different when you hold the currency, your assets can be frozen or locked at any time.

Stablecoins are quite an important part of the market, the use of which is sometimes mandatory because we need to use them in some cases like DCA, or have to use them when the market starts to fluctuate...we need stable assets to avoid a bear market. You can use them normally but don't keep them for too long will not benefit you.

Depends on how you would define 'safe'. If you mean "safe from losses", technically it is not  simply because currencies especially cryptos' market value are naturally volatile. Stable coins are not really 'stable', it is just that their market prices does not move that much from a price point unlike with other cryptos which often break barriers depending on market behavior. But indeed it would be less risky to invest your money with, in comparison with others.

If it is 'safe' from hacking, fraud, and the likes, that would depend on the network that particular currency is using as well as its security in general. Safer to invest, yes. Less risk of losing huge amount of money, also yes. But keep in mind that the bigger the risk, the bigger the profit, so quite balance things out depending on your aim as an investment. You should not expect that much of profit if you will be choosing stable coins as investment.

I have been using stable token since a few years ago and nothing happened with my money. People are feeling worried when nothing was happening with it. So many FUD statement has come from the various parties. If you think that's not safe and then never try to use it otherwise if you think that's safe and then just use it anytime. There's no safe place in the crypto, i used my safest stable token like BUSD

stable coins can be said to be safe but on condition that you also have to store them well,
because we know that currently there are many cases of hackers, choose stable coins such as BUSD, USDT and USDC,
don't buy other than that because it is very risky for Rugpull.

Stop blabbering, crypto currency is not an authority to say there is something under them and the term crypto currency is generally used to address the decentralized peer to peer mode of transaction which is completely safe no matter what.

Stable coins aren't really a cryptocurrency they are using blockchain technology but hold high risk than fiat.

You also contradict your own words. Cryptocurrency is a blockchain and stabelcoins are built on the blockchain of different projects like ETH or TRX, BNB, LUNA :D. Except there is no security in any of these projects. I will not talk about LUNA. But BNB and ETH can block your funds, so using stablecoins cannot be called safe for any of us.

I treat all cryptocurrencies the same. I understand that we all look to stablecoins when the market is dipping to save our overall portfolio value but I however believe that even stablecoins are not totally safe from crashing either just like every other crypto. After all, they are projects setups like other crypto and for some reason can crash like them too.

Storing stablecoins on your wallet is dangerous for many reasons that it makes no sense to list here. Therefore, if you are not planning to buy in the near future, it will be reasonable to transfer such stablecoins to fiat. Moreover, thanks to p2p, it is very easy and very fast to do.

What I meant to say is cryptocurrency uses the blockchain technology but the utility of blockchain is beyond cryptocurrency for example to poll election votes do there will be complete transparency and will be caught if tampered.

Stable coins uses centralized blockchain which means the project itself control the nodes where as the true cryptocurrency like bitcoin are decentralized not backed by anything simply got the value from demand and supply.

Stable coin have had it's use for us, you can convert your crypto to stable coins as hedge to volatility, and vice versa, convert your stable coins to crypto if you want to do trades. But yes with the advent of P2P it's easy to handle stable coins to fiat and very quick.

But still the question though, it is safe, as we don't know if this stable coins projects are back up 1:1 against the dollar or they are just running on fractional reserves just like bank. Really hard to answer this though, for me, I used stable coins, but I don't put everything on them. And if I will ever had to transfer my crypto to stable coins, I will simply withdraw it P2P.

USDT and BUSD are safest at the moment, I would say. They have existed for the longest as stablecoins and have never lost anyone money. Unlike exchanges which get hacked or scam people out of their coins. Which is why I would also say USDT is safer than BUSD. Simply because of BUSD's connection to Binance through the Binance Smart Chain (as well as because of the chains pseudo-centralized nature.)

Although With ETH 2.0, I would rate USDT lower and put both of them on the same level of trust.

Why should I store stablecoin when I am not ready to use it for transactions, stablecoin has its price peg to centralized currencies like united states dollars and from time to time the price may fluctuate but it will definitely bounce back to its fixed price that is a peg with.
The bit in some situations like that of the Luna USTD crash where the stablecoin crumble, so the risk of holding it is still there. It then becomes better to always have the coins converted totally into fiat to avoid holding a large chunk of coins that do not have any potential to increase but decrease at the interval.

Honestly noone is sure with pegging mechanisms that work to make them equal to 1 usd. Obviously USDT or Tether and BUSD are the most used and common ones since there are many trading pairs with them. Anyways its far better to hold perfectly legal real USD. I sort of prefer USDC to both of these cause Coinbase is more regulated/reviewed/evaluated than Binance or Bitfinex in my opinion. I wish we had better method, like official USD coin issued by USA that we could use. None of them are %100 safe.

A funny and repeatedly asked question bro its really hard to convince yourself that some of the stablecoins are safe because we are living in the two types of market merge timeline where centralized finance is not over yet and decentralized finance is fully not the dominant. These are two same different things as Algrothmic stable coins are good in terms of the asset's scalability and transparency that reserves are clear and these coins are trustworthy but about their peg system, UST is an example.
On another hand there USDT and USDC no clear reserves but their + point is their stability and peg system reserves are highly sheddy and these are non-trustworthy.

Take an example of what happened on Terra Luna's stable coin which is called UST, basically, this UST is a stablecoin pegged in United States Dollars as 1:1
But then again, there was some hole and some others said, there are people who attacked this UST stablecoin and caused it to de-pegged which started to lose it's value from 1:1 to USD. Then until now, it was worth nothing already. There's no safe stablecoin, just be careful.

The FSB has issued a “Draft Opinion on Cryptocurrencies, Digital Assets and Blockchain”, which is actually quite informative and worth reading. just following the current pulse of the market, to know what may need to be regulated in the future.

True, Stablecoins are gaining popularity, several prominent figures in the cryptocurrency industry have warned users about them. I think we will see in the future if any of them are actually able to provide support for a stable financial ecosystem.

We should be learning that everything in the world of cryptocurrency is never stable much more those who are using the word "stable" and yes even including USDT which still has to released its full audit promised 5 years ago. And this is a big lesson that FTX and Sam Bankman-Fried are teaching us. This year we are dealt with many platform collapse but the biggest collapse can be USDT in case the many doubts about it can be coming true...let's hope this will not be happening anytime. In the industry that is supposed to be the OPPOSITE of the traditional financial and banking system, one thing we have seen is that it can just be the same. Let's all wish that this painful era can be the purge and cleanse period so that something good can be coming out of it.

Just look at Luna(UST) then I reckon you'd get your answer. It may be a single instance, but it's still an instance nonetheless to take into account. I'd honestly just avoid holding any stablecoins for a long period of time if possible, I've only ever used stablecoins when paying/moving stuff, the rest of what is in my wallet is always invested in some crypto for the long term.

Here's an old post by mk4 about stablecoins
https://bitcointalk.org/index.php?topic=5204055.0 (https://bitcointalk.org/index.php?topic=5204055.0)

You don't need to worry about whether stable coins are safe or not. Maybe what makes you feel insecure is that you are keeping stable coins on an exchange which could get you into trouble at any time. But if you keep stable coins in other wallets, it will be safer.

But if "safe" here is about government regulation, I guess it will be up to each government to regulate cryptocurrencies in their country. And as long as your government allows crypto, it will be safe. The use of stable coins is to anticipate a decline in the market so that the value of our assets will not be too affected and we can also use stable coins to buy decreased coins.

Nope. They aren't safe. Nobody in the right mind would see them "safe". First of all, we don't know if these tokens are backed by any real assets. Ideally they should back them with USD only but that ship has sailed long time ago. They say these tokens are backed by government bonds mostly and that itself is not bad. However, as we have seen with LUNA, FTX etc. these scammers back their assets with their own printed altcoins. So, the issuer of tether, very well be backing tether with other alts or even btc. But we use tether to buy btc and if btc uses tethers to back itself, I mean, that would be pretty fucked up.

I personally often use stabilo coins at certain times to stabilize the financial value that I have.  But for the type of stable coin that I choose, usually USDT which already has credibility value.  And to use other stable coins, maybe I still need time

UST is an algorithmically stable coin backed by bitcoin and many altcoins, so when the market fluctuates, it is bound to crash, UST was warned a lot before it collapsed. UST is not like the rest, but after all, stablecoins are centralized so there is no guarantee for us, they can be frozen by the issuer at any time. But from my point of view, investing in crypto is always risky, holding altcoins will not be safe for you as altcoins like Luna or FTT are not much better than stablecoins.

Some Stable coins are safe as far as crypto system remians like Usdc and Dai which are backed by. Usdt and some others stable coins are not fuy secure and any time it can rugged like Ustc. After Ftx collapse I withdraw my 80% stable coin to fiat and now just using 20% for trading etc.

It seems to me that these stabelcoins are safe until something bad happens. LUNA UST, for example, was also said to be safe and no one could take your money from you. But trouble came when it wasn't supposed to. USDC is centralized, so your funds can be blocked, just like USDT. I agree about DAI, it is the only decentralized stable that is fine for now, but nobody knows what can happen with it in the future.

The only time I am using stable coins is when I am trading something for which BTC pair isn't available or at the time of withdrawing it to cash.
The rest of the times I hold the coins. I mostly prefer USDC and USDT is my second priority. Rest all are out of my bucket.
I cannot really say if stable coins are really stable or safe or not because of the recent events of LUNA and FTT.
But if you wanna buy stable coins  then prefer USDC and that too only for a very short time.

Bitcoin is also not safe let alone stable coins, once investing in crypto you should know that this market is full of risks. Your assets can be lost, disappeared or hacked at any time. In my opinion, stablecoins are altcoins so their safety is considered similar to altcoins. Do you believe altcoins are safe?

Though stable coins relatively less risky as they are supposed to be backed by Fiat currencies, but we can't say that they are 100% safe in particular algorithmic coins like UST. We have seen in the recent past how billions of dollars were wiped out from market within days when UST peg was broken. One thing we need to keep in my mind that crypto highly rewarding but highly risky too so secure your investment/trade buy using all risk management tools.

Stablecoins are one of the reasons we has as much liquidity and high prices as we do. I don't think that most people are against regulating/auditing them so that endless fud on them would end. And if trust on stable coins would increase, so would the market price of most coins.

Current situation is that anyone can just create algorithmic stablecoin and have no rules that requires them to provide any proof of reserves. Which is absurd when you think about it.

This will now change and obviously there will be some cryptopunks against it, as not only governments want to audit the reserves. They will most likely end up regulating more anyone asked for. But it's not like we have an option to stop them to do that.

If you think that storing a stablecoin on your wallet is safe, then you should remember such stablecoins as UST, which lost its peg to the dollar and crashed. In that case, no matter where you stored UST, you ended up losing your money.

As you say nothing is safe in this market and I agree with that, everything will be fine until it crashes. It can be said that there is no such thing as absolute security in this world, everything is relative and the crypto market is uncertain and unsafe. Once entering the market, we should remember that there is no concept of eternal security here even if it is decentralized. I have an old piece of advice for the OP, only invest with what you're willing to lose.

Since I know the stable coins, I immediately move the assets to the coin stable, and several times I can save the assets so as to avoid greater losses, and I think stable coins that have strong power are USDT and BUSD, So the conclusion is that the coin stable is very good and safe.

Yes, there is nothing 100% safe in the crypto market. We have to agree on that. Also, do not forget that USDT lost its peg previously, and its price decreased to $0.96, and its team confirmed that it will restore its price again by buying back from its own reserves. USDT is one of the largest cryptocurrencies in The crypto market after Bitcoin and Ethereum, and if we assume that something happens to USDT, I see that it will be a disaster and the end of crypto. At the present time, the price of USDT remains stable, but for how long? No one can answer this question, so what I advise is not to put our money in one stablecoin and divide it into some other stablecoins.

You're comparing an algorithmic stablecoin (UST) with established stablecoins such as USDT and USDC. The latter are deemed safe enough to use and have hardly ever lost their $1 peg. Even when they did, they quickly recovered. That's not the case with algorithmic stablecoins, though, which can be deemed extremely risky because they rely on two types of tokens: a stablecoin and another token supporting the aforementioned stablecoin. There are several examples of failed ones out there, such as BoltDollar or UST. It's easy to mention that plenty can go wrong with them, and they're not actually guaranteed to have a secure 1:1 dollar peg (see USDN, FEI, or DEI).

Hard to say its 100% safe after all the big issues about stable coins, we might safely say it for now but hard to predict the future, as many says Bitcoin is the only safe coin because its purely decentralized and even big investors believes on the same thing. Holding stable coins might save you from volatility, but again you should still analyze it before holding.

At the moment many stable coins are no longer "stable" their value against the dollar has dropped slightly (usdt) but they are one of the safest things in the world of cryptocurrencies, for me a point of reference

Tether (USDT) is different from these algorithmic stablecoins.
Algorithmic stablecoins are backed by other coins to maintain its price to it's promise value. This method of buying back affects the value of the both coins which can sometimes cause for the fall of an stablecoin just like what happened to UST. That is one reason why it is less trustworthy than USDT which uses its own reserves to buy back and regain being 1:1 to US dollar.

The simple truth in my opinion is, that no crypto stable coin that exists right now is really 100% safe, so waht the FSB is saying is definitely true in my opinion. I mean just look at what happened with Terra Luna a few months ago. They could not hold their stablecoin at the dollar peg anymore and that killed the whole company and brought the rest of the crypto market down. Without the events of Terra Luna i think FTX would not be bankrupt today.
Also USDT has also lost it's PEG for a few days. According to coinmarketcap it is at 0,9996 at the moment. Of course this is only a very small deviation from it's peg but still. As long as their is no official digital $ or € we won't have real stablecoins.

In the not so distant future, we might see that any price volatility is mitigated by blockchain technology, but that day is not here yet. As such, there are several different stable coins to choose from for added stability when purchasing cryptocurrencies. If you are looking for a way to hedge against cryptocurrency volatility, then you might be interested in integrating stable coins into your portfolio. For anyone who just wants to long Bitcoin, however, it is likely that holding Bitcoin directly is the better course of action.

However, there is still much promise behind these coins. The model works, it's just going to take some more time before any stablecoin offers Bitcoin-like levels of stability and security. The risks of holding the most popular stablecoins are well-known. Those risks include their centralized nature, their reliance on an outside institution to maintain a fixed exchange rate, and their susceptibility to regulatory actions taken against that institution. There are also the risks of their technology being hacked, a malicious actor taking control of the system, or simply failing as a result of poor code.

The security here may be due to the backup of the stablecoins. and this is one of the reasons why you choose and invest in stablecoins. However, if you ask whether it is safe or not. Every technology and system will definitely not be 100% perfect so there will still be errors. Therefore, we cannot guarantee that it is safe.

Sometimes, some people are using certain news to utilize the condition, both for taking profits, getting more cryptos, and others. And some other people are also using stablecoins because of the stable condition and also backup with strong fundamentals.

That might be the case but if you could just use the most used stablecoin I think you will be fine, but always diversify your wealth that's in stablecoin into some various stablecoin that way you'll be safe from sudden crash of stablecoin therefore you could never just lost your wealth overnight.
I think the key is how you manage this wealth in this case, everything has risk, even fiat money still have fluctuation and even gold could lose its value.

No, I will not use UST because I prefer USDT or BUSD rather than UST. I am also more familiar with those stablecoin than the other stablecoins. Storing USDT or BUSD in any wallet we can control will be safe. But I do not have the plan to hold stablecoin for the long term instead trying to buy bitcoin when the price is down. For me, a stablecoin is just a temporary place to save the value of my crypto assets before I convert it into bitcoin.

Well, the best thing to do is not to focus on stablecoins but rather make it spread to different coins - Bitcoin and some altcoins in order to avoid high risk. Though I say that we suddenly lost our trust in these stablecoins due to their past issues that we never expect, however it affects us mentally. Actually, it is too hard to bring back the trust when there is already a bad history but yes, I still consider some of these stablecoins can be trusted. The market is soo tricky and we need to choose coins for investment wisely.

Until now I have never found a suspicious thing from the stable coin, stable coins are supported by many platforms such as ERC, BSC, Matic, etc., and until now I think stable coins are safe and worth making us to move assets when we are afraid of prices will drop .

It's not as secure as you think, USDT and BUSD are centralized, even if you store them on your non-custodial wallet, they can freeze your coins at any time. Currently, we only have one decentralized stablecoin, which is DAI and it is arguably the most secure.


That's right, during bear season stable coins are a safe haven for us, they are still essential for them but as long as we never hold them for long we should be fine.

You shall do a proper research again. There are so many suspicious things related with the stable token just like ability to ban and it can depeg from its value anytime due to the liquidity. The peg was not making the stable token became strong but the liquidity in the market that was defending the peg from token to the its reserved. It's not all of stable tokens were also safe. You shall remember if stable tokens were also being issued by human and it's not  truly decentralized.
I think that would better if you are starting to do another research again caused by so many stable tokens have been fallen like UST

It's not a problem because, up until now, I haven't had any trouble using USDT or BUSD and I still like both. I haven't used DAI in a while but maybe someday, I'll try it. Besides that, the stablecoins that I use are temporary and I don't keep them for the long term and I will convert them to bitcoin or altcoins when the market experiences a correction or decline.

Yes, you are right. We use stablecoins to anticipate the decline in bitcoin or altcoins so that if the price of bitcoin or altcoins decreases, we can buy them using stablecoins. And if the price of bitcoins or altcoins increases, we can sell them to get stablecoins.

At least the current stablecoins I think are not very safe. DAI may be better and has a bit of technical content, but USDT is really hard to say. I think there will be problems sooner or later.

If the best option is to choose decentralized stablecoins, then that is what we are supposed to do. But unfortunately, most of these stablecoins are centralized, they can take your money if they wanted. For many issues that happened to stablecoins, we can't set aside the increase of distrust of them. After the Luna issue, I'd never invest in stablecoins anymore, at least I was safe rather than losing my hard-earned money investing in a useless project. Even how long we spend searching to potential stablecoins this will never give us guarantee.

I don't think stable coins are that safe, especially after the fiasco of Luna and some other stables that depegged. But til a better option is available, it is the best tool we have right now in case of a DCA

Of course, nothing is 100% safe, but let's not compare stable coins with Luna... I didn't even know about the Luna before their fiasco, I saw the first complaints here and I was thinking "where did this come from?"! Who was crazy enough to go for some Luna, after reading about Luna I didn't see anything special there except some "big words". But people still invested heavily and many lost a lot of money.

Stablecoins are just stablecoins, in the end, we use them to "get in & out" from some coins/tokens, there's no reason to hold them for too long. Some of the stablecoins are around for years without any issues, so even though there's a risk we all use them and we will probably continue to use them.

This was not specifically about LUNA but about the UST algorithmic stablecoin. Both failed and a lot of people lost a lot of money. Not only ordinary users went bankrupt, but also some large funds. It's very strange that you haven't heard about it. LUNA and UST had a big capitalisation and one can say that these events started the market crash that we see today.

With an exception to other interests, I do not find DAI's choice and its reasoning credible. DAI is similar to Terrausd, that the coin value does not depend on a specific amount of money held in a bank or high-rate asset. BUSD stable Coin team holds over 2 billion dollars worth of bitcoin as of today, which appears to be a reliable source of funds and backup.

We can't judge all the stable coins by Luna. Crypto market is uncertain and anything is possible here. But it is not like that stable coins are not safe. Yes, stable coins are not 100% safe but some stable coins are doing great and we can trust these coins. After all, self analysis and market research are highly recommend.

On some post it says that Dai is an algo based stable coin similar to Terrausd but there's also post which says that Dai isn't like that, like for example on this link here > https://blog.makerdao.com/busting-makerdao-myths-seven-misconceptions-about-dai/ They say that it was only a myth and they also bust other myths and common misconceptions about Dai.

I think dai is also much older than Terrausd. By the time Terrausd collapsed, other algo based stable coins have also followed but there are no reports that Dai is among with them. I guess that is enough reason for us to trust Dai. Being decentralized is also a good reason on why we must prefer it over the other centralized stable coins.  Usdc is also a good stablecoin but im not sure about Usdt. Many people dislike this stablecoin.

Stable coins are not safe and should never be held for the long term, some people may believe that the other stable coins still in the market are simply too big too fail, but such a thing does not exist, we have seen many times through history fiat currencies suffering a huge devaluation or simply disappearing, and it is obvious the businesses behind those stable coins are nowhere near as powerful as those countries, as such we need to always be very careful when we deal with stable coins.

There is no guarantee that stable coins will be safe, learning from experience in the LUNA case, even stable coins can collapse if the main support collapses. I only use stable coins that have been proven to have a strong foundation, such as BUSD and USDT.

Stablecoins will only be safe if the issuer releases proof that they hold assets equivalent to what they put out in the market. They can easily write whatever figure they wanted written in there and people won't notice until someone in the group calls them out for it. Even big names like Binance and Tether need to be audited for their assets and their stablecoins. You cannot create money out of thin air, and it's easy to do that on stablecoins without a sweat, you just have to have some followers and a very promising and catchy offer.

Theoretically, stable coins should be safer than other crypto currencies (because those are subject to market volatility whereas stable coin is not) and supposed to be 100% (1-to-1 with reserves on hand) backed by fiat currencies (like USD, EURO) but the issue is, whether issuer is trustworthy and how to verify his claiming.                           

Conclusion: if the reserves of stable coin are verified by independent auditor, then it is safe to hold in portfolio.


https://moneymade.io/learn/article/safest-stablecoin

We can compare them 100% for sure. Luna crashed because it was ran by people who didn't know how they should run a project, and USDT or BUSD or any other stablecoin could fail for the exact same reason. Just because they have managed to make it run so far doesn't mean that they will be able to do it again forever neither.

I personally believe that the best thing about crypto is the fact that you could buy things that are decentralized and controlled by nobody, so to pick something that is purely centralized and at the hands of a company is not really a smart decision and the end result could very well be exactly like Luna for sure, and that's a big problem.

I think it is safe because many big investor store his fund in the form of Stablecoins .
But not anyone say its full safe because its a crypto not believe any thing any time do some thing new.
But Stablecoins usdt , busd , usdc , etc are very strong project hopefully you easily hold your fund in this form and easily you save your money and change your coin in to this form means you are safe and no any chance you loss your money.

i quite agree with you. because in reality even stablecoins cannot even be said to be safe. but we can choose which stablecoin is the best. And of course, at the moment, the one that doesn't have a bad reputation in stablecoins is BUSD. USDT is also quite good but I read that a few years ago something happened to USDT. but the USDT can handle it well. so that trust in them is still maintained. But I still choose BUSD as a stablecoin that I hold to store my assets for a while before I buy BTC and some potential altcoins.

I recommend you to save your funds in stable coins like USDT, USDC and BUSD. These coins are to safe and secure and also it's price will also stable. You can use exchange like Binance and wallet like Trust Wallet these are also most safe and secure for saving stable coins.

I'm afraid i wouldn't recommend a crypto enthusiast to save their funds in stable coins for the long term, it is not safe to do so; if you are prolly a trader who needs to move your funds into stable coins and then out to other crypto's for the purpose of your trade, then that might just be fine for you, but do not consider your funds secure or safe when you have them in stable coins, especially when it is for the long run, it is a centralized coin and quite a lot of things can go wrong with centralized coins, your funds could even be frozen and you would lose everything. Save your funds in decentralized cryptocurrencies, and store them in your own open source non-custodial wallet for maximum security.

Using centralized stablecoins, you must fully trust their issuer. If you fully trust the companies Tether Ltd and Binance, then you can continue to use USDT and BUSD to store your funds. Otherwise, as an alternative to centralized stablecoins, you should consider decentralized stablecoins such as DAI. At the same time, algorithmic ones should be avoided, since UST has compromised them.

It is not entirely correct to compare algorithmic stablecoins with centralized stablecoins.
Important news and reports I publish in this thread
https://bitcointalk.org/index.php?topic=5247581
I use different stablecoins, including decentralized DAI, but the only protection can be to store savings in different stablecoins and cryptocurrencies.

Nothing is safe with stablecoins or even with altcoins. Once you enter the market, it is called risk so invest with the amount you can lose. USDT and BUSD are also centralized stablecoins, which are difficult to crash but they can freeze your assets at any time. They are not as safe as you think, never hold them for long time.

Some stable coins such as tether and busd have officially received guarantees from the USA financial authority so I'm sure it's safe, and I have used stable coins for more than 3 years and have never been problematic, stable coins have an algorithm that makes its value stable even though the market is sinking or skyrocketing .

No cryptocurrency is truly safe, and stablecoins are no longer stable. Stablecoins are centralized, it can be frozen, it can even have a lot of problems and everything will be lost.
Stablecoins also have certain risks. Do not hold them for a long time, and disperse funds into different currencies to avoid greater risks.

Most of my stablecoins are in BUSD since I am more active in BSC-related projects, but they are in my non-custodial wallet. Will be transferring most of them in Ledger Nano S to be truly safe from getting siphoned by the hacker in the future if I am encountering another malware without knowing.

Since these stablecoins like USDT and BUSD are centralized, so they can just freeze it anytime. DAI could be a great option for stablecoin, but it might change in the future if possible like the case of Ethereum from PoW to PoS.

Centralized projects mostly have bad ends. We can't hide the huge impact of Luna in the market making many investors worry that any of these days another Stablecoin and a centralized project will follow. Of course, USDT and BUSD still gain trust among stablecoins in the market but we should still be careful as we never know exactly what is their plan.

I can be honest myself that I lose trust in any of them, might it will change in the future but in this current situation, I consider investing in them to be at high risk.

They’re fine to use & hold short term but like anything that is not decentralised, I wouldn’t recommend storing much of your wealth in them for any significant period of time.

Most people know the above but get lazy. Just be careful & look after your money in the best way you can i.e. don’t let anybody else have control over it.

I don't fear USDT or BUSD will die like UST, as they are both called stablecoins but they are completely different. UST is an algorithmically stable coin and they obviously cannot be called stable when backed by bitcoin or altcoins as both are highly volatile so losing the peg is inevitable. But the other 2 stablecoins are backed by USD with a ratio of 1:1 so it is very difficult to crash like UST, but the risk of holding these coins is not different from altcoins, they are centralized so they can be frozen at any time.

For now, if you want to keep a stable coin,
I suggest keeping it in USDT only because USDT is really backed by the actual USD that is held in reserve by Tether Limited,
of course this is why they are really serious, different from UST, which is backed by Terra Luna and now they are a scam,
so stay away from stable coins backed by a coin again so there is only one thing that is safe, namely USDT.

But last time when the FTX scammed people the USDT also goes down a little. But it is secure.

But we have others option too like BUSD and USDC. These are also good options.

But I always keep my assets in Bitcoin.

I would guess that stablecoins could become a trouble the moment the company behind it gets into trouble and that is the issue. I mean you may not believe that it could happen, but just because it ran greatly for 3 years doesn't mean it will do so forever. Plenty of companies that run for 50 years ended up being terrible later on, that is the risk that you are taking when investing.

I still dislike stablecoins for one reason, they are fiat posing as crypto. If I wanted fiat so much, I would have it in my bank account and not in binance, so it is a lot better for me to focus towards crypto and buy crypto currencies because I got into this world to buy them, not stablecoins.

I had stored most of my funds in the Gold Stablecoin, where you can exchange your Etherium and BTC for Gold. For the time being, I'm seeing that it is as stable as I think. Recently they had a bounty campaign also running, but I think it is still running. This is just my opinion, you can try other stablecoins, according to your research.

You need to be very careful and check the value of your coins continuously, I say this because over the years there have been many coins which claim to be backed by gold and they never last long, so it is possible the coin in which you invested your money is not going to be an exception to this, I think that if you want to be out of this market for some time that is respectable, but if that is the case then you need to get fiat, stable coins are simply to vulnerable to manipulation by those which can create those tokens.

There are quite a lot of different stablecoins on the market right now, and it's not entirely clear why there are so many of them being produced. If earlier there was only one main coin called USDT, now there are much more of them. Of course, if you study this issue in more detail, it is not recommended to buy stablecoins with a small capitalization. It is better to make your choice towards USDT, since its market capitalization is approximately equal to two stablecoins called USDC and BUSD (Binance USD).

https://i.postimg.cc/QCYJHrXP/Screen.png (https://postimages.org/)

Investors are worried after losing their investment in UST stablecoin and some rumors about stablecoin USDC and USDT. Only hold some of your investment in stablecoin. BUSD stable coin is safe, but a significant portion of your investment should be in BTC and some in BUSD.

The price of Tether (USDT) will eventually collapse, but not now. There are many more things that haven't been audited in USDT, which has caused speculation.

Therefore, USDC exists. Transparency and full backing are the hallmarks of USDC. However, anything is possible now that they can find ways to crash it. If you want to use DAI, you can do so. DAI> USDC > USDT. Yet it's probably not a smart move to invest in stablecoins.

Indeed stable coins are an effective way to store the ownership of the assets we have.  But it's best not to change the assets we have into stable coins for too long.  Because if market conditions have improved, having alt is a more appropriate choice

As far as I know, this Gold coin (https://bitcointalk.org/index.php?topic=5161544) has an audit which you can check through their website. also they have a certificate from Bullionstar. So, for Gold it should be safe. Because you can check the value of the backed gold they have stored in Bullionstar anytime. even so, caution must still be on top an i agree with you, because after all the smart contract system may experience an exploit that can makes investors lost.

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Maybe you can check this article before you say USDT very safe
https://www.forbes.com/advisor/in/investing/cryptocurrency/what-is-tether-usdt/

better to keep your money in your local bank than USDT if you are not trading for a long time  ;)

Stable coins in my opinion are safe because they are issued by official companies, the amount of stock stable coins based on real assets so as to make me do not hesitate to stable coins such as USDC, Busd, Tether as coins to store assets so they are not affected by market conditions.

I do agree that Luna had a huge impact, but FTX also had another one, and if we keep being in the bear market we are going to keep seeing more. Do you truly believe that if EVERY person withdrew from their USDT, that won't crash? They can cover 20-30 billion, but could they cover ALL of it? There will be a point where they will say they can't pay everyone back and it would be horrible.

This is what happened with FTX as well, people all wanted to withdraw and caused trouble, same could happen with USDT as well. This is why there is no guarantee that stablecoins are safe, and even the market is not safe and that matters a lot to the users and the investors for stablecoin.

I don't know much about this gold stablecoin. I'm a little interested to know. and maybe will start researching about the stablecoin a little. because the price follows the original gold price. then of course the price movement may not be too affected by inflation. So I guess this one is worth looking into. That is about security. because so far I have only used BUSD for stablecoins.

They have a bounty campaign on our forum and it's been running for over 2 years and they're still going. I've known about this stablecoin for quite some time but I still haven't seen it really popular, I think if it really has potential then maybe it would have become popular.
In my opinion, stablecoins are altcoins, which means they are not completely safe but as long as we use them properly, we can limit the risk somewhat.
https://bitcointalk.org/index.php?topic=5164058.0

It is difficult to call it a stablecoin, since its value is tied not to the fiat dollar, but to the value of gold. And given the fact that the value of gold is as volatile as the value of bitcoin, the price of Gold will not be constant against the dollar and, accordingly, will not be able to save you money.

Well there are other stable coins tied to different fiat currencies then USD and gold has been pretty stable and holds value better then Fiat money in a long run so i don't see problems calling tokens that are backed by it stablecoins. As long as they indeed are 100% backed by it.

   - I'm not a fan of stablecoins but when I do p2p transactions I use USDT, which I can't deny helps me withdraw money from a centralized exchange platform.

Maybe somehow I can say that it's safe as long as it's not a big amount, but of course, that depends on your trust. Because I'm doing it now, using binance so far Busd, Usdt, and usdc are okay for me. Other's would agree with me and some are not, but we have our own choice in terms of this matter anyway.

One of them is based on bitfinex exchange basically, but Tether is its own company based on Bahamas, and even with all of that red flag, it reached the peak levels of stablecoin domination, still the biggest by far. USDC is based on coinbase, and they are the most trusted crypto company in the crypto world, the amount of regulations and audits that they go through is insane, not that it is impossible to trick the system, many did, but it would be insanely terrible with insane jail time for them, so they are careful at all turns.

BUSD is binance, which means they are the biggest, not stablecoin BUSD but binance itself, so you know they would want to stay afloat when they are already raking in billions anyway.

BUSD still not safe . because that peg depend in Binance . if Binance exchange crash like a top exchange FTX then BUSD will also crash like Terra peg UST . so in my opinion USDT & USDC i can consider as a safe stablecoin. and i like to hold USDT must of the time. USDC also can be holdable

^ It could have an effect on this stable coin if Binance will crash and declare bankruptcy but I don't think BUSD was pegged only on Binance.
I am not on their side but if you will read this it is a more regulated stable coin as of now.
https://www.binance.com/en/blog/ecosystem/understanding-busd-and-binancepeg-busd-5526464425033159282
However, I will not consider stablecoins safe in holding.

Yeah, that is a good way to use it, but there is also the fact that we are not seeing what USDT could be used for online as well. Like if I had a website then I would accept USDT as payment for buying something. I have a friend who is a developer and he sometimes accepts USDT as well, and usually BUSD but generally he accepts stablecoins, not like he rejects crypto neither, but people usually are fine with stablecoins so he works with them, turns them into crypto right away of course after he gets them.

So over all for payment purposes USDT and BUSD are great, what you do afterwards is upto you, but the transaction itself is not a bad idea at all.

BUSD  is approved by the New York Department of Financial Services (NYDFS) and they will try to take care this but BUSD own by Binance and it is almost full of depend in Binance . Binance is must popular and trusted crypto exchange that's why people also believe in BUSD but when something will happen with Binance like bankruptcy then busd will also fall its price and it will behave like UST. stay truth

In the past few years, many people predicted USDT would crash, and I still see many people saying the same thing today. However, USDT is still the largest cap and most used stablecoin by far.
Honestly, I see all stablecoins as the same, they are not so different, USDT, USDC, or BUSD are all the same. All are equally concentrated and risky, no one is safer than the other. Their mission is to be an intermediary asset to help us access bitcoin easier, they are not an investment, so there is no need to compare or distinguish, they are not suitable for long-term holding.

The most important thing is that they are all equally supplied with air. That is, the capitalization of Tether only is $66 billion. And this is much more than the capitalization of real active companies, for example 5 times more than Nissan Motors, which produce real cars, which as well as Tether are used all over the world. Knowing just about this simple math makes me wonder what's going on.

yes, stablecoins are indeed the goal for that and almost everyone will say the same thing, but based on experience it seems that nothing can guarantee that it will always be safe, but in crypto there are always loopholes and outside of thought analysis. but comparing with the others we have to admit stablecoin is the safest asset and you are right buddy.

It is safe because it is tethered to a dollar price and with that alone it is safe to say the Stable Coins are the best way to save in this industry. This means you will be the best benefits when market is down, hence stable coins are pegged to a dollar value and with that you will have nothing to worry about price mark downs in your portfolios.

Stablecoins will be safer than other cryptocurrencies, but no cryptocurrency is truly safe, and neither is a stablecoin.

Long-term holding of stablecoins is risky. Investing in Bitcoin at low prices can diversify risks and be able to gain profits when prices rise to increase value.

Stable coins have been proven safe, every coin circulating is a reflection of 1 USD that has been validated by the USA government, this is what makes stable coins very popular and for daily transactions the largest and defeat Bitcoin since a few years ago.