Stable coins are not actual fiat

[cryptoboss2020]

They are not legally actual fiat
Even something happens with USA dollar or any other fiat your stable coins stay same.
The fuctuaction will be directed by bitcoin so there is no need to be them even 1:1 pegged to fiat.



Im wrong Here? 

[pixie85]

At the same time if something happens to your stablecoin or to the company that issues it, fiat and bitcoin will remain unaffected.

What are the chances of something happening to fiat money like USD or EUR compared to something happening to some stablecoin like USDt that isn't even backed 1:1 and refused to undergo an audit?

Yes, stablecoins are not fiat money but are they better? I'd rather have bitcoin or good old cash than a promise from Tether.

[Twentyonepaylots]

Fiat is different from crypto, there is no actual fiat in crypto but there are pegged 1:1 crypto such as tether in reflect to USD. Is it legal? YES.

Stable coins and fiat are widely compared due to its low volatility status thus stablecoins are used in common scenarios such as safe haven from market volatility. They are not actual fiat but they act like a fiat in crypto world. You'll understand this thing once you started trading and use stablecoins.

[20kevin20]

In terms of USD, yes. It stays the same. But if a currency collapses such as USD, then things are quite uncertain honestly. If in that case things become very uncertain for any USD holder, imagine what a stablecoin holder would have to go through. It's like some kind of double-danger.

Stablecoins are different to fiat. It's some kind of virtual fiat, if you will. But whether the existing supply of a coin like Tether is really backed up in real USD or it's just money made out of thin air is up to your own research and trust.

[bitmover]

They are not legally actual fiat
Even something happens with USA dollar or any other fiat your stable coins stay same.
The fuctuaction will be directed by bitcoin so there is no need to be them even 1:1 pegged to fiat.



Im wrong Here? 

You are wrong. They have no relation to bitcoin, but usdt uses it network for its transactions, similar to a token (coloured coin)

Stable coins are not fiat. Stable coins are basic loans. Tether made some tokens and said "I am selling those user for 1 usd. At anytime  I will pay back 1 usd for each usdt you bring me back"

They keep the money and give you tokens.

They are centralized, they are based in trust. They are loans.

[maxreish]

Stable coin is far too different from fiat currency. And we know that stable coin is still a cryptocurrency. Not even recognized legally by other countries even if it is stable when it comes to price. For some countries, it is serve as a threat to their own fiat currency  but for some, they are considering and planning to make their own stable coin to boost their economy and willing to backed by their own bank.

See this for example;

- Russia's approach to welcome stablecoin

[mk4]

Value wise, stablecoins are pretty much just fiat on a blockchain. If the USD implodes in value, then of course your stablecoins(USDT/USDC/etc) does the same because it's 1:1 pegged to the USD(or it should be, at least). Nothing really much to do with BTC at all.

[OcTradism]

Stable coins are ways to digitalize fiat currencies but people must believe in stable coin companies' protocols that their stable coin amount is backed by the same amount of fiat currency. It is unknown for many reasons.

Those companies can mint more stable coins than the amount of fiat currencies they store in secured vaults, in banks, etc.

The common things they are centralized and you must trust them and take risks when they break their protocols. There are not many stable coins are decentralized. DAI from Maker is a good decentralized stable coin as I know.

[Twinkledoe]

In terms of USD, yes. It stays the same. But if a currency collapses such as USD, then things are quite uncertain honestly. If in that case things become very uncertain for any USD holder, imagine what a stablecoin holder would have to go through. It's like some kind of double-danger.

Stablecoins are different to fiat. It's some kind of virtual fiat, if you will. But whether the existing supply of a coin like Tether is really backed up in real USD or it's just money made out of thin air is up to your own research and trust.

This is the reason why I have doubts with USDT. We don't know if they are saying the absolute truth regarding their assets as their stablecoin is being pegged at their USD assets. If you look at the numbers of their circulating supply, about 24.33B right now (https://www.coingecko.com/en/coins/tether). Who can verify that they have such USD assets equivalent to this number if there is no third party auditor?

[meanwords]

Stablecoins and Bitcoin doesn't really have any correlation from each other. To be honest, you don't have to think that much, just think of stablecoins (USDT, etc) as virtual fiats that you can use to buy Bitcoin or other cryptocurrencies in the market. It's based on trust (just like fiat) and pretty much just a virtual fiat.

Just don't hold it though because you never know when they are going to messed up.

[pakhitheboss]

Stable coin are pegged to the fiat value, so actually they are not cryptocurrency. They were created to save the local fiat value of your assets in case the market goes down. In my opinion they are only helpful when you want to check the fiat value of any cryptocurrencies otherwise I donot see any practical usage of any stable coin.

[rollingdice]

The fuctuaction will be directed by bitcoin so there is no need to be them even 1:1 pegged to fiat.

Stablecoins backed by fiat currencies should be fully backed or they can't legally represent the reserved assets. Bitcoin or any altcoins aren't correlated with stablecoins directly.

[bittick]

You are not wrong at all and i do agree if the stable coins are not legal as fiat but it was getting backed by the fiat currency which is legal.
The stable coin being created as a solution to fix the volatility problem and that's the main reason. A lot of parties were complaining about the volatility when they are trading, make a transaction or something else and that's why this solution already created.

[dansus021]

At the same time if something happens to your stablecoin or to the company that issues it, fiat and bitcoin will remain unaffected.

What are the chances of something happening to fiat money like USD or EUR compared to something happening to some stablecoin like USDt that isn't even backed 1:1 and refused to undergo an audit?

Yes, stablecoins are not fiat money but are they better? I'd rather have bitcoin or good old cash than a promise from Tether.

yea, there some "conspiracy" about USDT but i agree to invest in bitcoin or gold rather than USDT

Fiat is different from crypto, there is no actual fiat in crypto but there are pegged 1:1 crypto such as tether in reflect to USD. Is it legal? YES.

Stable coins and fiat are widely compared due to its low volatility status thus stablecoins are used in common scenarios such as safe haven from market volatility. They are not actual fiat but they act like a fiat in crypto world. You'll understand this thing once you started trading and use stablecoins.

and yes usually im using USDT for exchange to exchange transaction because low fee and the price remain stable

[Leviathan.007]

Stable coins are not same as the fiat currencies at all. USDT is an example, due to several reasons, the price of each usdt can be increased or decreased. For example, 2-3 years ago price was fallen to 0.8usd for each usdt. As far as I know, there is no chance for find an usd stable-coin which is guaranteed to to be always 1:1. The stability of the stable coins usually depends on the supply and demand and the amount of liquidity the team provided to back the price.

[kryptqnick]

Op, you're partially right and partially wrong. You're right that stable coins are not fiat. They are not even a digital representation of fiat, they're just tokens which are supposed to be backed up by something that would allow the price to remain stable. Let's take the most famous stable coin USDT. It was allegedly backed up 1:1 with USD, but there was no proof of it being the case. And eventually the company admitted that USDT is not backed up solely with USD, but claimed that it's backed up by other valuable things (again, there's no way to check how much it's truly backed up and by what exactly).
The part where you're wrong is that if USD falls, USDT will be okay. Since people believe that USDT is backed up by USD and the very point of USDT is to always cost $1 per coin, a collapse of dollar would make it very hard to establish the value of USDT and there would definitely be uncontrollable panic selling which would cause the price to plummet.
More interestingly, USDT is way riskier than USD. While it's not impossible for USD to suffer from hyperinflation, it's not very likely to happen. USDT, on the other hand, can explode at any point even when USD remains alright precisely because it's a highly regulated bubble currency that is not truly backed up by dollars and is basically holding up on immense funds and price regulations as well as the trust of the users.

[tabas]

They are not legally actual fiat
Even something happens with USA dollar or any other fiat your stable coins stay same.
The fuctuaction will be directed by bitcoin so there is no need to be them even 1:1 pegged to fiat.



Im wrong Here? 

Not legal if they don't have backup for their stable coin. But if they do and it's proven that they have the entire stable coin backed up with an asset of the provider, they shall pass the screening and will be legally operators of stable coins.
It's still 1:1 and relies on USD or the fiat currency that they work on because some are backed up by Euro. IIRC, there's one I guess.

[cryptoboss2020]

So If I have stable coins in my wallet and something happens with  USA dollar or other fiat..
Then there is no connection between them my stable coins balance can remain same even after dollar collapse.

That's why the Circle usdc coin working on commercial transactions to develope.
Plus usdc visa cooperation
In otherwords the stable coin is not fiat currency but you can use it as a fiat currency.

Its kinda like was the Liberty Reserve wich was closed by usa authority.
But with stable coins they start to regulate and stable coins will be very useful when they are regulated and sec approved by the times when everywhere will be dollar and other fiat currency shortage.
By the time there will be dollar shortage the fed printed money will be in stable coins.
If there would be the dollar shortage all they have to do is just regulate the stable coins and give them name as CBDC That's all they got to do.

And when there is dollar shortage the assets will be cheap and no wonder why they working on Project usdc.

Sure they dont tell us this many will be against it but when time is right they give us just a little Information but not all the info with one shot...

But world is working by logic logic is Behind everything and what I said its logical




Correct me If im wrong

[cryptoboss2020]

Also the federal reserve printing so much money that there is no actual way to know If there is more USDT in circlelation then it should.

To own usdt is like If you got 2$ you might have the purache power of 5$ its like USA dollar money printer without Control and the USDT and crypto liqutity is so high and volume so good around the world we would not even notice If there is few extra dollars what should't been there.


Who pay for that?  The honest hard working tax payers as usual even those who is not involved in crypto so If you gona pay price anyways you might just join with crypto  

All they need to do is to keep printing so there would be so many dollars that If they make from 2$ to 5$ nobody not gona notice this even.

[20kevin20]

So If I have stable coins in my wallet and something happens with  USA dollar or other fiat..
Then there is no connection between them my stable coins balance can remain same even after dollar collapse.

The USD can literally disappear forever. Stablecoins are pegged to it and theoretically "backed up" by it, but nobody guarantees a verified, audited backup of the coins in fiat. If dollar collapses, it's probably up to the USDT devs/team whether your balance will still be there or they just run away with it.

In otherwords the stable coin is not fiat currency but you can use it as a fiat currency.

To put it another way.. Imagine I gave you a piece of paper on which "$1" is written with a pen, and I told you that I will always have a $1 bill in my wallet as long as that piece of paper is yours. That is basically all you know: you have a piece of paper that is theoretically worth $1, although nobody could guarantee the existence of the $1 bill I promised I have in my wallet and nobody could guarantee what happens if USD collapses. It's like keeping your bucks in someone else's custody - they have control over it.