Stablecoins are never perfectly stable

[FreeStreamer]

A cryptocurrency being a stablecoin does not mean that the price is literally perfectly stable. It means that there's an effort to stabilize the price as much as possible. Different stablecoins use different methods to stabilize their price. Some peg the value to some other relatively stable asset like the dollar, gold or sliver. Others attempt to stabilize the price themselves by regulating the circulating supply in relation with market capital so that the price stays stable.

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[DDante]

FreeStreamer what's up with you and stablecoin? Lol anyway, there is no loss holding stable coins, the lower I've seen them go is 1% loss, around 1$ to 0.99$, that's what you are going to see, stable coins works perfectly ok and thanks to them they makes trading more interesting and easy

[FreeStreamer]

FreeStreamer what's up with you and stablecoin? Lol anyway, there is no loss holding stable coins, the lower I've seen them go is 1% loss, around 1$ to 0.99$, that's what you are going to see, stable coins works perfectly ok and thanks to them they makes trading more interesting and easy

I am contributing to this space by educating and sharing information. There is a loss holding a stablecoin. It's called inflation. Currency is not meant to stand still. Currency is meant to circulate. Currency is not a financial asset. It's a medium of exchange. The word currency itself means literally "in circulation"

[Ucy]

Ofcourse!
They fluctuate in price but the fluctuations are quite low or moderate most times compared to cryptocurrency.
You could get a cryptocurrency behave in  similar manner without making it inflationary overall. Deflation is very important feature of crypto

[passwordnow]

They wouldn't move apart from $1-$0.99. That's always the price of these stable coins and if they increase a bit, that will be around $1.01 or a bit more than that.
Not that much difference with those price that I've given because I always check their prices although I don't buy them. But at least, I have seen those times that they've moved from those price range.

[Nalbo]

Stable coins either hold the fiat amount/commodity they are pegged to or have an escrow larger than the value of their issued coins. A stable USD coin either need to hold US dollar or need to have an escrow thats more than sufficient to cover the USD and if the value went down, they'd need to either increase the escrow amount or decrease the supply. For gold backed coins, they also need to maintain the amount of gold equal to the value of their issued coin or a larger escrow.

[TastyChillySauce00]

A cryptocurrency being a stablecoin does not mean that the price is literally perfectly stable. It means that there's an effort to stabilize the price as much as possible. Different stablecoins use different methods to stabilize their price. Some peg the value to some other relatively stable asset like the dollar, gold or sliver. Others attempt to stabilize the price themselves by regulating the circulating supply in relation with market capital so that the price stays stable.

I have seen some old platforms were using their own formula to create a stable coin but there's none of them have become a successful project as the price dumped a lot and some projects worth almost zero value.
At least the coin that backed by the real commodity will much better even if that will not be forever

[jrrsparkles]

FreeStreamer what's up with you and stablecoin? Lol anyway, there is no loss holding stable coins, the lower I've seen them go is 1% loss, around 1$ to 0.99$, that's what you are going to see, stable coins works perfectly ok and thanks to them they makes trading more interesting and easy

The value $1 itself never stable because the value keep changing more precisely it keeps decreasing. You may not making anything by holding stble coin so use it wisely for your trading activity and try to cut down the conversion fee and make more money to buy decentralized cryptos with the profit you made.Beyond this I don't fund any real use case for stable coins.

[Byakuga]

Yea stable coins fluctuates in price but it's nothing to write about since it's only 1% loss most times, this is not something to be worried about and it's not enough to condemn stable coins or say that they aren't actually stable

[Pumuckel21]

This is right, most stable coins are not 100% stable. The good thing here is that you can decide when you want to sell your stable coins, this means you shall not sell if the coin is way below 1$ or the currency it reflects

[OasisDre]

This is right, most stable coins are not 100% stable. The good thing here is that you can decide when you want to sell your stable coins, this means you shall not sell if the coin is way below 1$ or the currency it reflects

How is a 0.01% a loss? Stable coin fluctuates and that's normal but this coins aren't program to dump without sharp correction, it's easier for usdt or go back to 1$ when it loss value sometimes to 0.9$, I hold USDT and I know how they works, I'm not holding to make gains but for buy backs.

[qomariah95]

We all know that Cryptocurrency is indeed volatile. But stable coins in crypto are certainly different from altcoin on the market. I believe stable coins can go down and up. But the price is not so big as it increased by 100% for example. With the presence of stable coins in this crypto, it is a good thing for holders to protect brand assets.

[Samayuki]

Yes it's true that stable coins aren't perfectly stable, they loss value and recovers depending on how the market is but those loss in value aren't as big as those we see in volatility coins, the difference is marginal but I'm satisfied with the way stable coins works

[Winscosinally]

A cryptocurrency being a stablecoin does not mean that the price is literally perfectly stable. It means that there's an effort to stabilize the price as much as possible. Different stablecoins use different methods to stabilize their price. Some peg the value to some other relatively stable asset like the dollar, gold or sliver. Others attempt to stabilize the price themselves by regulating the circulating supply in relation with market capital so that the price stays stable.

OP let's say you have 70$ in usdt and dumps happens in the market movement but the lowest your usdt holding goes is around 69.99 $ or 69.10$ for days before picking up to 70$ again how aren't you satisfied with this? Stable coins works flawlessly mate and it's not that hard to see

[Ozero]

Compared to a decentralized cryptocurrency, stable coins mean complete price stability. The vibrations are so insignificant that they can be ignored. Therefore, in general, stable coins live up to their name. I don’t see any problems here.
Stable coins are still developing, but have already shown their need and usefulness.

[bigcash2011]

A cryptocurrency being a stablecoin does not mean that the price is literally perfectly stable. It means that there's an effort to stabilize the price as much as possible. Different stablecoins use different methods to stabilize their price. Some peg the value to some other relatively stable asset like the dollar, gold or sliver. Others attempt to stabilize the price themselves by regulating the circulating supply in relation with market capital so that the price stays stable.

Stablecoins that are not regulated and backed by govt would face some hard time in future as every country will be coming up with their own central bank digital currencies and they will act as the official stablecoins so all other stablecoins will be in trouble then. I think it is high time people be a little cautious and try to stay in crypto untill situation becomes clear regarding stablecoins.

[Ryushin]

A cryptocurrency being a stablecoin does not mean that the price is literally perfectly stable. It means that there's an effort to stabilize the price as much as possible. Different stablecoins use different methods to stabilize their price. Some peg the value to some other relatively stable asset like the dollar, gold or sliver. Others attempt to stabilize the price themselves by regulating the circulating supply in relation with market capital so that the price stays stable.

I don't see any big deal about fluctuations that happens with stable coins, they aren't even big enough to start talking about and they also have faster recovery than bitcoin, for me stable coins works perfectly as 1:1 USD pegged

[ife2020]

A cryptocurrency being a stablecoin does not mean that the price is literally perfectly stable. It means that there's an effort to stabilize the price as much as possible. Different stablecoins use different methods to stabilize their price. Some peg the value to some other relatively stable asset like the dollar, gold or sliver. Others attempt to stabilize the price themselves by regulating the circulating supply in relation with market capital so that the price stays stable.

Tbh, you don't need stable coins to be perfectly stable, all you need it to do is to be conveniently stable and maintain your funds. As long as your 999$=999$ any time, then the goal is achieved. For stable coins pegged to gold, silver etc they have the gold silver etc already in the vault acting as security.

My question is, why do you need a stable coin?? Find the answer and you will realize you don't need crypto currency to be perfect

[Dariusburst]

True, I haven't seen stable coin that holds firm unto 1$ price for long without losing bit of its value but really the little loss doesn't count, and again stable coins always recovers faster, I can't say which is best but I like using USDT because of its pair supports on many exchanges

[Iyanu14]

A cryptocurrency being a stablecoin does not mean that the price is literally perfectly stable. It means that there's an effort to stabilize the price as much as possible. Different stablecoins use different methods to stabilize their price. Some peg the value to some other relatively stable asset like the dollar, gold or sliver. Others attempt to stabilize the price themselves by regulating the circulating supply in relation with market capital so that the price stays stable.

I don't think anything is perfect in life. But when we are talking about stable coins, at least I have dealt with USDT before, it may not be perfect all the time but it's 99.99% stable.  This has afforded lots of big traders the opportunity for convenient trading.  If you have them, then you have less to worry  about volatility nature of crypto market.  Thanks to these stable coins.