Stable coins are not actual fiat

[tabas]

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.

It remains $1:1 stable coin. What you're pointing is the value of it which will depreciate whenever something happens to USD.

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.

You're determining the ratio of it through your expected value of it which won't happen. It's as usual 1:1 and the value depreciates if USD depreciates. It is common to see inflation in fiat currencies and stable coins are pegged on it so they would also be affected by inflation.

[tbct_mt2]

It remains $1:1 stable coin. What you're pointing is the value of it which will depreciate whenever something happens to USD.

You're determining the ratio of it through your expected value of it which won't happen. It's as usual 1:1 and the value depreciates if USD depreciates. It is common to see inflation in fiat currencies and stable coins are pegged on it so they would also be affected by inflation.

The depreciation of stable coin values can come from fiat (USD) with hyper inflation, economic depression or it can come from the stable coin if the company which launches, mints that stable coin don't have enough fiat (USD) in banks.

In theory, company claims one stable coin is pegged by one USD in bank but if the fact is one stable coin is pegged by 0.5 USD in bank. The company mints double that what they should the their reserved USD in bank, the price of that stable coin will fall half  at least. I believe in such drama, price will be crashed more than half of 1 USD.

Inflation of fiat in society is a different thing and it is not a responsibility of stable coin companies.

[shoreno]

fiat is in real world but stable coins are here in crypto so yeah you are right . so many are worrying on stable coins but if they will only knew that stable coins are from being a fiat i dont know if they are still going to act like that , this post of yours can also be a way for them to know this fact if ever they havent figured it out yet but what i cant only agree with you when you say that stable coins are directed by the fluctuations of btc because btc is fluctuating verry high but i havent seen stable coin move like that .

[BigBoy89]

You are not wrong. Stable coins are not fiat, they are just pledget to fiat, but still cryptos. It the Tether's case it's not even know how/what exactly is pledges behind.

[Argoo]

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? 

Of course you are wrong. The dollar-backed stablecoin is essentially the same dollar, only in digital form. Yes, if the dollar depreciates, then we will see a 1: 1 ratio in the CoinMarketCap table. However, these numbers only indicate the dollar's backing of the stablecoin, not its price. The dollar price is not reflected here. The dollar in this case will be subject to inflation and its rate will fall, however, from the point of view of a stablecoin, it will remain backed by one dollar of less value.
This does not directly affect the price of bitcoin, but internally its price should rise in price over time.

[AbernathyFray]

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.

Leave crypto to FIAT and it opens up all kinds of KYC bunk.  But sometimes one must take some profits off the table.  Ride a coin up and find a safe haven as it drifts back down.  Buy back in and pocket some profit.  Using BTC as an example, most trust the protocol and there is a level of confidence.  But what do you get when you sell your BTC for USDT??? What is there to trust?

Its more than a little un-nerving.

[kentrolla]

I don't see any stabilize coin in crypto usdt is just interacting as a exchange, people tend to say it as stabilized Fiat crypto.

Terra coin is very familiar I went through some articles where I see they have pegged with major currencies in the world, also their transaction fee is low as well and it is a decentralized crypto, and I think it is stable and totally independent.

[shield132]

I hope it's not hard to understand that stablecoins are backed by USD, i.e. there is USD behind them and Stablecoins are just masks. Imagine USD on blockchain with name "Tether". If one does, another one dies too. Your speach looks like if my PC is turned on and electricity goes off, it should remain in turned on position while there is actually no supply. Same applies to stablecoins.

Btw I was really wondering about true stablecoin backed by USD where we would pick one "normal" and after that if USD rises or falls, stablecoin will fall/rise to balance the things and remain truly stable.

[cryptoboss2020]

Are the stable coins connected with forex currency prices?  I dont think so?

[Shasha80]

I agree that stablecoins are not actual fiat, but have the same value as fiat. So stablecoins are very useful for avoiding volatile crypto markets
and can also be used to save profits from trading. But it is not recommended to save our funds in large amounts of stablecoins. Because it is very
risky to save funds in stablecoins in the long term, besides the risk of a scam. You can't make a profit if you save money in stablecoins.

[tabas]

It remains $1:1 stable coin. What you're pointing is the value of it which will depreciate whenever something happens to USD.

You're determining the ratio of it through your expected value of it which won't happen. It's as usual 1:1 and the value depreciates if USD depreciates. It is common to see inflation in fiat currencies and stable coins are pegged on it so they would also be affected by inflation.

The depreciation of stable coin values can come from fiat (USD) with hyper inflation, economic depression or it can come from the stable coin if the company which launches, mints that stable coin don't have enough fiat (USD) in banks.

In theory, company claims one stable coin is pegged by one USD in bank but if the fact is one stable coin is pegged by 0.5 USD in bank. The company mints double that what they should the their reserved USD in bank, the price of that stable coin will fall half  at least. I believe in such drama, price will be crashed more than half of 1 USD.

Inflation of fiat in society is a different thing and it is not a responsibility of stable coin companies.

I agree that inflation isn't the responsibility of a stable coin company and what I'm saying is that if the fiat gets inflated, stable coins will follow.
And the issue with those a stable coin provider is still in question and I don't know how long will it take for them to solve it.

[cryptoboss2020]

I agree that stablecoins are not actual fiat, but have the same value as fiat. So stablecoins are very useful for avoiding volatile crypto markets
and can also be used to save profits from trading. But it is not recommended to save our funds in large amounts of stablecoins. Because it is very
risky to save funds in stablecoins in the long term, besides the risk of a scam. You can't make a profit if you save money in stablecoins.

Its same risk to hold on btc If the btc price goes down?  
Stable coins are kind of safe way to store funds

[Hydrogen]

Fiat currencies were gold backed in past eras. Cash could be exchanged for gold. Fiat printers held enough gold in reserves to match the paper money they printed. Today the united states holds tons of gold reserves in Fort Knox in an effort to back fiat. The USA also holds oil and other reserves which back the currency they issue in an emergency. The degree to which the US dollar is backed by gold, oil and other holdings however is not significant a percentage.

Stablecoins like tether are more firmly backed by US dollars, than the overwhelming majority of fiat currencies. Which opens the door to stablecoins being safer and better investment instruments for long term HODL in contrast to fiat reserve currencies like the US dollar.

US regulator gives approval for banks to hold stablecoins
BUSINESS 24 SEPTEMBER 2020

Regulators in the United States have given banks and financial institutions the authorization to hold reserves in stablecoins, opening up new opportunities for institutions to service the digital currency sector.

https://coingeek.com/us-regulator-gives-approval-for-banks-to-hold-stablecoins/

Some banks choosing to hold stablecoins as collateral assets, they way they would traditionally hold gold or precious metals could speak volumes as to their potential worth. It all depends on ones views of financial engineering etc.

[cryptoboss2020]

Fiat currencies were gold backed in past eras. Cash could be exchanged for gold. Fiat printers held enough gold in reserves to match the paper money they printed. Today the united states holds tons of gold reserves in Fort Knox in an effort to back fiat. The USA also holds oil and other reserves which back the currency they issue in an emergency. The degree to which the US dollar is backed by gold, oil and other holdings however is not significant a percentage.

Stablecoins like tether are more firmly backed by US dollars, than the overwhelming majority of fiat currencies. Which opens the door to stablecoins being safer and better investment instruments for long term HODL in contrast to fiat reserve currencies like the US dollar.

US regulator gives approval for banks to hold stablecoins
BUSINESS 24 SEPTEMBER 2020

Regulators in the United States have given banks and financial institutions the authorization to hold reserves in stablecoins, opening up new opportunities for institutions to service the digital currency sector.

https://coingeek.com/us-regulator-gives-approval-for-banks-to-hold-stablecoins/

Some banks choosing to hold stablecoins as collateral assets, they way they would traditionally hold gold or precious metals could speak volumes as to their potential worth. It all depends on ones views of financial engineering etc.

You are very right!!
And occ approved coins are usdt and usdc
So we can trust those 2 coins most If the Banks trust them and OCC approved

I guess so...

[AakZaki]

A stablecoin is a stabilized crypto Fiat. Not affected by the extreme votality that exists in cryptocurrency. Currently, many stablecoins have sprung up that provide benefits for holders so they are not affected when fluctuations occur in cryptocurrency. Stablecoins are also pegged to the price of precious metals such as gold or even other cryptocurrencies. Stablecoins that are made in digital form aim to imitate or duplicate stable traditional money in the form of cryptocurrency. Stablecoins will protect against crashes of local currencies so that they can move from currencies that are falling into more stable currencies and protect them from falling in value.

[Haunebu]

Isn't that obvious op? They are called crypto stablecoins for a reason. Currently, there are a decent number of stablecoins in the market.

https://cryptoslate.com/cryptos/stablecoin/

Above link displays most of them in detail. The biggest advantage of stablecoins in my opinion is the fact that we can trade FIAT based crypto stablecoins in an anonymous manner which is not possible with FIAT currencies.

[BrewMaster]

the fact that the volume of these centralized and in most cases highly risky stable coins is still very high should tell us a lot of things. the most important one in my opinion is the fact that we have a lot of gamblers in the cryptocurrency scene who are only interested in maximizing their trading profit when they trade altcoins every day while increasing the speed of going in and out of altcoins or between exchanges.
it is not just the total market cap that is increasing it is also the number of these gamblers.

[MelissaVorsteiner]

I think if stable coins would be fiat - price would always be equal to fiat. 1:1, and if you seen real price for stable coins they are always fluctuating. I might be wrong tho.

[CreativeCoin]

Stable coins are coins tied to real currencies. Yes, this makes them more reliable and convenient to use, compared to other coins that now and then jump on exchanges like rabbits. But real money can also change its value depending on the economies of countries.Such coins are convenient for buying and selling other coins due to their stability in relation to other cryptocurrencies.

[Nora Olin]

For now, crypto is not as same as cash, In fact, cryptocurrency has a long way to go to replace cash. Due to the decentralized nature of cryptocurrency, it is not conducive to government management. This situation may never happen.