What is the ROI for a stable coin?

[bobnexxus]

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?

[jhongzjhong]

You still have ROI but in a with a small of a certain amount, I think USDT will never go up because it will depend on the dollar base that's why this coin is stable. I think this is not a good idea if you are investing this stable coins, you can't see a huge profit here you need to invest in a highly volatile coin which is return a good profit. Stable coins are very useful in trading when bitcoin down you can divert to USDT to cut your losses.

[passwordnow]

Stable coin as an investment won't work. It also fluctuates but it's very minimal to the maximum of centavos for their price. The main use of stable coin is to save the value of your asset if the market keeps on moving and you want to move it first to stable coins. Example, you have $2,000 worth of bitcoin at the price of $8000 and you are not confident that the price will go higher by tomorrow or by next day. With that kind of concern, you want to save that current value of bitcoin you have @$2,000 so the best solution is to move that to stable coin. And you will have $2,000 USDT or any kind of stable coin which you can turn again into bitcoin again if you buy at lower price to add more.

[Duzter]

What you get as ROI from stable coins were very low. You need to have a very huge fund to get an earning out of it through the difference. Better is to have stable coins as a pairing to the leading cryptocurrencies into trading. This will get better earning through the trades as the paired coin will be having a higher volatility while stable coin won't be moving that big.

[Dreamchaser21]

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?

Stable coins still pump and dump a little, so you ROI will depend on the market situation and will always depend on your target. If a stable coin doesn’t move that much, then expect a little ROI since its a low risk of holding. If its never goes up, then no profit at all simple as that.

[suzanne5223]

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're right but the ROI in stable coin vary and require some research to get it because if you buy stable coin through their site(Tusd) they usually give some additional coin if ones buy at least $1000, some the coin surge pass $1 and the early adopter or investors usually have some discount dyrig presale or ICO of stable. However, some stable coin are back with precious metals and they can swap the coin for precious metals.

[Flor1982]

No one can predict the market movement of every coin not even the most stable coin which is Bitcoin is difficult to predict due to the market fluctuation therefore ROI will always depending to the numbers of investors that will have the interest to invest to that certain coin which is normal.

[xenomorphe1]

It is ROI agains Bitcoin and altcoins if they fall down. Or ROI agains USD. But you need to exchange it at the right time. Keeping USDT is no use if there is no trading.

[mersal]

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?

To be honest there is no return of invest from investing on a stable coin like USDT.

ROI comes from the price changes of something has stable value then its not an investment.

[Cnut237]

There isn't one if it stays stable.

One interesting point though is that these stablecoins are never 100% stable, they oscillate around the dollar peg. So technically you can make money by buying a load of USDT (or whatever) at $0.97 and then selling it all at $1.03.

The problem here being that:
If it's a bull market, and you go BTC->USDT->BTC then you'll end up with less BTC even though you've sold your USDT for a dollar gain, as BTC has risen more.
If it's a bear market, you'd just keep your money in USDT anyway so long as it is close enough to the dollar peg, and most of your gains will be in shorting BTC.
If the markets are absolutely flat, then your USDT gain would be worthwhile - but if the markets are flat it's unlkely USDT would move from the dollar anyway as there would be no sell or buy pressure on it.

[hurry_hore]

I am not thinking stable coin for investment, but they are used to convert fiat into crypto currencies for investing. So I just think stable coin as :
1. Tools for fiat currency converter (specially for USDT)
2. Alternate bank account or our saving in elec-money

[livingfree]

No one can predict the market movement of every coin not even the most stable coin which is Bitcoin is difficult to predict due to the market fluctuation therefore ROI will always depending to the numbers of investors that will have the interest to invest to that certain coin which is normal.

Bitcoin is the most stable coin? what kind of definition we have for being 'stable'? We have various stable coins in the market and their value never moves, bitcoin isn't a stable coin because it's price is moving from time to time.

I'm saying that bitcoin isn't the most stable coin but in terms of being reliable, bitcoin is the most reliable crypto.

[didzi]

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?

To be honest there is no return of invest from investing on a stable coin like USDT.

ROI comes from the price changes of something has stable value then its not an investment.

if we only keep our stable coins, i think there will be no ROI my friend
but, if we trade this stable coins in BTC or ETH pairs, i think we will get a good ROI mate
how, ? just exchange your stable coins to BTC or eth when the price of BTC or ETH will rise, then exchange your BTC or ETH to stable coins, when the price of BTC or ETH will go down mate, maybe thats the right way to get profit from stable coins

[South Park]

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.

[moonblocks]

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

[tonyvo2017]

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.

[pinoy.bolanon]

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.

[btc_angela]

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.

[Ucy]

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.

[Makkara]

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