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Author Topic: Stablecoins are never perfectly stable  (Read 378 times)
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July 10, 2020, 02:27:02 AM
 #41

It's the truth, no cryptocurrency or currency is perfectly stable, including stablecoins. But the change in price of stablecoin is very tiny and it's acceptable. So stablecoin is safe to hold during a market crash. Most of stablecoins prices are pegged to USD, and you know that USD price is changing every second ( the same as others, that's why we have forex trading), so it's no way to keep stablecoin perfectly stable.

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July 10, 2020, 02:37:48 AM
 #42

It's the truth, no cryptocurrency or currency is perfectly stable, including stablecoins. But the change in price of stablecoin is very tiny and it's acceptable. So stablecoin is safe to hold during a market crash. Most of stablecoins prices are pegged to USD, and you know that USD price is changing every second ( the same as others, that's why we have forex trading), so it's no way to keep stablecoin perfectly stable.
if you pay attention to stable crypto changes occur when bitcoin moves up and down. when bitcoin falls then the stable coin will increase in price. because some people sell assets and move to USDT and other stable assets. that is an old trick that is often done by investors and traders in the crypto market. its movements certainly cannot be fixed. because the value of fiat money in the world also has an exchange rate that is constantly changing.

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July 10, 2020, 04:34:14 PM
 #43

Exactly, the crypto market is so volatile and that's why everything here is not stable. Due to its volatility people thinks it has a high risk but at the same time they think it has huge potential in its tremendous growth. As well USDT is more likely a stable coin as compare to crypto and that's why some of the people make their investment in USDT.
they don't invest in USDT. although still experiencing price movements in the crypto market but the ratio of movement is very low and relatively small. different from altcoin or bitcoin. they can freely experience jumps or price increases quickly. once again they do not invest in USDT. they just save their money to be safer. especially in a market that is in a downtrend.

what will be their gain from usdt if they will invest on it , nothing but they are only going to pay for the fee upon using the exchange site  . investing isnt the right term to be used but exchanging or trading can be more propriate  . usd is volatile not because its here on the crypto market but because its tied on  fiat money   . fiats do fluctuate too  . they cant be perfect when it comes to being stable but they are still the perfect fit when we want our cryptos to be stable
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July 10, 2020, 09:04:32 PM
 #44

For the real stable coins, they are actually stable to a high degree that your losses even in a great dip wont be more than 1$ which you are going to gain. It depends on the kind of stable coin you are holding.

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