Are stablecoins a definite solution against a bear market?

[Crypto5060]

I think so but I'm also not sure what will happen when everybody tries to hold stablecoins during bear market, do other coins become valueless while the stable coins gain more value?

[mamahdedeh]

A lot of my friends disagree with me, but the definite solution during dips for me, is your local currency or fiat.
There's a need to always get your profits out.

Usdt or other stable coins I believe are for temporal threshold of your MOney

store assets on usdt, it would be profitable if done temporarily to wait for a decrease in coin until we buy it. rather than being held in fiat form, I think it requires more process if you are going to buy crypto again

[r32godzilla]

If I were to be anticipating an extended bear market, I'd rather just take the fees of converting my crypto to fiat money and keep that fiat money until I see market conditions improving and convert it back to cryptocurrencies later. One main advantage that stablecoins have is that they can be traded just like fiat dollars but without the string attached with trading with fiat, which is partly why so many traders use stablecoins, but you lose that when you're keeping the stablecoin for an extended period of time.

I also see most stablecoins as being slightly risky even though they might claim to be extremely safe and secure, especially Tether. I don't use Tether, I don't plan on ever using it, and I certainly won't be holding it.

Check Monero Dollar (#xmrd) is a secure, private, untraceable Stablecoin https://bitcointalk.org/index.php?topic=5214640.msg53512987#msg53512987

But when it is private and untraceable how do you assure that price will be stable? How it is backed? How we can verify that someone is not cheating?
I do not think that stable coin could be anonymous, even decentralized stable coin is a problem to control the stability.

[Abiky]

Sure but if the bear market is going to last for a long time then the stable coins are likely to fluctuate as well unless its issuer decides to mint new coins into the system. I have seen Tether fall below a dollar and even rise above a dollar by some few cents. But in the midst of short or moderate bear market like what we have been experiencing for the past 1 year stable coins are surely the answer.

That's certainly true, mate. This explains why some stablecoins have been unable to maintain a perfect peg to the United States Dollar. A bear market could have a negative impact at times on some stablecoins being traded at crypto exchanges worldwide. The situation is even worse with decentralized stablecoins like SDAI and DAI which are purely based on algorithms instead of actual USD reserves. While nothing is perfect, stablecoins are often the choice of traders and investors alike because of the benefits they provide relative to traditional Fiat currencies of today. Of course, you can still cash out your crypto in your national currency (Fiat). But for me, it's often better to use stablecoins as you get "the best of both worlds".

Nonetheless, stablecoins seems to be the way of the future as mainstream companies provide exciting use cases for people worldwide. The convenience of Fiat's stableness in price, and crypto's decentralized nature, makes stablecoins a top choice for everyone (either a newcomer or veteran in the crypto space). Just my opinion

[huu78]

In my opinion stable coin / token is not a solution for the bear market. Because of that level of trust and regulations that need to be improved. Because coins that are declared stable coins turn out to be unstable prices like this

It is true not a good solution, but to minimize it may be a solution, in fact, stable coins are far away from buying and sell orders but they are stable at the price instead of falling like other altcoins.
So it is not the right solution but if you do not want to bother saving to USD or real currency is better to hold the stable coin.

[TheICE007]

To some extent  stable coins have gone as far as helping maintaining traders or investors capital. Imagine BTC dumping and you already converted to stable coin, that would be a sign of relief to the trader or investor because you don't have to watch the value of your coin keep reducing there will be some calm in you.

[boris singer]

In my opinion stable coin / token is not a solution for the bear market. Because of that level of trust and regulations that need to be improved. Because coins that are declared stable coins turn out to be unstable prices like this

It is true not a good solution, but to minimize it may be a solution, in fact, stable coins are far away from buying and sell orders but they are stable at the price instead of falling like other altcoins.
So it is not the right solution but if you do not want to bother saving to USD or real currency is better to hold the stable coin.

I am a bit worried if stable coins can be frozen at any time because of a particular case from the developer, and especially when I hold a large number of stable coins at the same time. other than that it doesn't matter, the price difference against the USD isn't too far away, it's still better than holding bitcoin / atcoin in a bearish condition.

[hello_good_sir]

Stablecoins are not a solution. They are a hedge.

Those are two entirely different things. Stablecoins' existence don't guarantee that bear markets won't happen anymore. In fact, it may actually be the opposite as it becomes easier for people to short BTC in a sense.

Instead, stablecoins offer investors a way to keep their fiat currency holdings in a crypto form so that it can be quickly exchanged for and against BTC in times of volatility.

[Btc_1856]

To some extent  stable coins have gone as far as helping maintaining traders or investors capital. Imagine BTC dumping and you already converted to stable coin, that would be a sign of relief to the trader or investor because you don't have to watch the value of your coin keep reducing there will be some calm in you.

We have already experienced this type of situation in 2018 because people who converted their Bitcoins to stable coin during at a higher price. It is always a good option to convert our altcoin into a stable whenever we see an upward trend for the coin we have invested.

[devillnj2.1]

stable coin is best alternative for fiat dollar, but interms of investment stablecoin can be use as your safeguard when you think market state is not good, if you think your token or coins price will go down exchange it to stable coin for the meantime, then exchange it again when you think it will go up.

[julius caesar]

I do not think we will be having a stable coin since the main feature of cryptocurrency is volatility itself. Meaning, the consumers are the one who dictates the price of it depends on their supply and demand. Bear market is normal because of volatility. Just learn how to take advantage into it and you will for surely gonna earn profit into it.

[iconoclast]

Stablecoins have their role as a safe harbour during times of volatility or when you want to send money without risking a price fluctuation. For example the contest just launched by KuCoinPlay is paying the prizes in USDT because they don't want the value of the prize to fluctuate.

[biddicoin]

But even you hold stable coins you are in a risk.
At first, when you hold centralized stable coin like Tether, you never know if everything is okay with the company. What happen if regulations come. When you hold decentralized stable coin, you never know if the coin be stable in the future.

This must be considered more to all people who hold stable coin. I agree with this
But, at least we already avoided market risk. that's what the concern here

Secondly, you risk that price of cryptocurrencies will grow dramatically and you loose the potential profit. 

So, we do nothing also risky, bcz we can lose potential profit lulz

[Desscount]

traders only move their funds in stable coins, and don't play in altcoin or bitcoin, because it is very risky for the bear market, stable coins function the same as FIAT, it might be very helpful

[chaoscoinz]

I don't know for sure if they're a definite solution, but the utility of stable coins is pretty consistent, especially when trading. Starting off as a beginner within cryptocurrency and market trading is incredibly hard for a person to jump into with no prior knowledge regarding trading and business finance. Stable coins made learning to trade a little simpler, because practicing trading with a stable-coin paired with a regular crypto-coin makes
the dynamic process easier to understand for a newbie.

[Hypnosis00]

I'm supposed to think this before but when the moment I really engage in crypto, I realize that it couldn't be. The market isn't just of having stable coins to make it less volatile but the fact that we are depending on the market demand and supply, it all becomes impossible. That makes me think that crypto market has to have a unique market design and definitely we can't stop this volatility.

[ololajulo]

I have seen this argument but was more of stable coin to Fiat. I like to adopt what the big guns in the market do when keeping their profits,which is putting your profit in fiat. Though there might be tax implication with some countries when fiat is used but fiat in this bear market had been more reliable, maybe because tether lost it at a point and Dollar was more consistent that ever.

[Twentyonepaylots]

I have seen this argument but was more of stable coin to Fiat. I like to adopt what the big guns in the market do when keeping their profits,which is putting your profit in fiat. Though there might be tax implication with some countries when fiat is used but fiat in this bear market had been more reliable, maybe because tether lost it at a point and Dollar was more consistent that ever.

Personally stablecoins provide catharsis for people in times of uncertainty especially when huge coins in the market dumps their prices. They have been a huge help so far in keeping the cryptocurrency industry alive. Though fiat still poses some help, I would say that stablecoins take the cake this time.

[gweedo]

In the bear market, Stablecoins like USDT, PAX, USDC .. will help you to be safe and not lose if the prices of altcoin and bitcoin fall. You can even buy more altcoins and bitcoins for that amount. For more than 1 year almost all traders have been holding stablecoins to wait for a suitable point to invest in the market.

[totoy4741]

Sorry to ask cause I only have a little knoweldge about stable coins. Do they increase/decrease they value just like any other coins or not since they are pegged to a certain currency? If they are not decrease their value, there are any chances it would make cryptocurrency stable not definitely a solutions for a declining market.