With this possibly upcoming crisis in mind...

[poptok1]

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?

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[GreatArkansas]

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.

[Patrix_1]

What is the point of investing in stable assets, but if you think that everything will drop, then I would choose the one and only right stable coin which is named DAI. In my opinion, this is the obvious choice, because such coins as TUSD are garbage.

[Javi_Anibarro]

There is a reason for fiat to sink like a stone and there will another reason for stablecoin to sink as well. There is no mechanism to protect it,
it has been like this for ages and we can not change it.
you can think this way that means somebody else out there might think like this too, there is a possibility for someone out there hoarding stablecoin because they are afraid of upcoming crisis.

[joseyphil82]

I consider coins like USDT or USDC a digital fiat (USD) or whatever you want to call it, but there is no benefit of holding them for long since you will still get back what you spend on them, buying stable coins can't be called investing, its perfect for keeping digital money at a fixed price

[JCviggen]

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

[Edraket31]

No one is hoarding stable coins, because there will be no benefits of holding them. we only buy stable coins when we want to switch our non-stable coins to the fiat price. because trading from BTC to USDT is convenience when you are worried about the sudden fall of the price. This is the only thing I see about the use of stable coins. other than alternatives for fiat, we find no other use for it.

Yes, there is no benefit at all in holding stanble coins, but they have also advantage, as we all know that crypto is volatile, so once the Bitcoin is dropping, most traders strategy is to convert their Bitcoin or any other altcoins to stable coins then buying again once the market is stable. So, stable coins has a big role too, or else, traders will incur a big loss.

[SamboNZ]

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?

Why would you invest in stablecoins? Its pegged at a fixed value if you use for trading then it has a point but if its for long-term holding might aswell turn it into a real fiat and then invest it in a bank.
There is no mechanism that protect stablecoins from losing its value, its just an imagination its not backed by something.

[fuer44]

the current crisis is because of the failure of dev critics to develop their coins and projects. people will definitely get bored with the same situation as this and not develop at all, so it only plays on crypto values ​​only. it makes a significant decline in crypto enthusiasts and prices will be difficult to go back up and stable. that's just my analysis in person, maybe there are still many other things that make a crisis like this.

[o48o]

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.

[Shasha80]

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.

[Findingnemo]

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.

[CjMapope]

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

[BigBoy89]

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 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.

[crazy-pilot]

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.

[mindrust]

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.

[Pearls Before Swine]

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.

[magneto]

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 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.

[bigcash2011]

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.

[htsy585]

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