Stable coins are not actual fiat

[Sithara007]

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.

No. It doesn't make them more reliable or convenient. On the other hand, I would say that it makes them less trustworthy compared to other cryptocurrencies. In the case of stablecoins, some unknown individual or entity is holding the reserve funds and they issue tokens for these funds. If you own these tokens, then you don't directly own the reserve funds. It is very much possible that the individual or entity holding these funds will vanish without any warning, making the tokens completely useless.

[williamsarah]

hello everybody,
I am new to crypto but what i learnt is that any cryptocurrency is money, future money to better say, soon there would be no dollars or euro and people will spend crypto. If you'd like to invest, BTC is better but if you wanna spend tether is better cause it has less fluctuation.

[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? 

Stable coins also vary in ownership. They are private, owned by several individuals or legal entities, as well as by a state or a group of states. Personal and commercial stablecoins are the most vulnerable in terms of the possibility of various negative situations and the threat of their disappearance.
 The most valuable will be stable coins of states, that is, the digitized currencies of their central banks. In relation to them, it cannot be said that this is not real money. It will be the same currency, only in digital form.

[Noctis Connor]

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? 

Why you're looking for something that ain't happen? if your trying to compare crypto currency into fiat it has big differences and doesn't effect each one another therefor you can assure that one country or government can't control crypto unlike fiat they can manipulate everything and the economics can be done by them. If this happens that everything will be depends on bitcoin then thats the time that bitcoin will over come those power for able to be the that stable but since it is still volatile and no one can predict the future it holds.

[MCobian]

The stable coins price is not related to Bitcoin, therefore Bitcoin pump or dump, the stable coins price remains pegged to fiat. But stable coins
are not fiat either, because fiat and cryptocurrency are two different things. But if fiat prices drop, then the stable coins go down too, because
the price is pegged to fiat. And you are correct, not all countries legalize stable coins.

[Swopon]

Yep, stable coins are not actual fiat. Stable coins are virtually but comprised in cryptocurrency. Fiat on the other arrow is not comprised in the currency. If we peek at the USD as a stable coin, we can glimpse that it is stable for a maximum period, such as 1: 1. But periodically we have glimpsed its fall. Although the fall was unusual. This indicates that the stable coin is not wrapped by Fiat in any way.

[huff87]

Like other cryptocurrencies, stablecoins are digital currencies with no physical existence, and can be traded in exchanges across the world. Many stablecoins are collateralized at a 1:1 ratio with certain fiat currencies, such as the U.S. Dollar or the Euro, which can be traded on exchanges. Backed stablecoins are subject to the same volatility and risk associated with the backing asset. If the backed stablecoin is backed in a decentralized manner, then they are relatively safe from predation, but if there is a central vault, they may be robbed, of suffer loss of confidence.

[irixo10]

If they are actually pegged to fiat then they are much same as fiat because the value they will reflect is that of fiat, and of course they are claimed to be backed by US dollar as the case may be. Also, holding a stablecoin like USDT can be seen as holding fiat thus if anything is to happen to fiat, it will be seen in the stablecoin, thus I think stablecoins can be seen as fiat, but in this case they leverage a digital form (crypto) in order to be in line with the crypto space. In the same way, stablecoins exhibit some of the attributes of fiat, that is, they are highly centralized and controlled, which then makes them less trusted while Bitcoin on the other hand, still remains the most trusted as it is not controlled or pegged to fiat.

[Oceat]

Like other cryptocurrencies, stablecoins are digital currencies with no physical existence, and can be traded in exchanges across the world. Many stablecoins are collateralized at a 1:1 ratio with certain fiat currencies, such as the U.S. Dollar or the Euro, which can be traded on exchanges. Backed stablecoins are subject to the same volatility and risk associated with the backing asset. If the backed stablecoin is backed in a decentralized manner, then they are relatively safe from predation, but if there is a central vault, they may be robbed, of suffer loss of confidence.

This is the actual meaning of fiat and cryptocurrency.

We can't just say stable coins is just like fiat, since fiat is physically obtain while cryptocurrency is digitally obtain through peer-to-peer. There is a bigger difference in security in fiat and crypto just like what you said when we are talking about centralization versus decentralization. But most people chose centralized system than decentralized system because it's the most convenient.

[jerry0]

Well as of now and years ago, you could sell the stablecoin immediately for fiat. 


But if you had a lot of stablecoins, shouldn't you feel pretty safe though?  I mean imagine those of you with 5 figures or or more in a stable coin like usdt or usdc or pax.  I mean its still worth a dollar... just require you to sell it right?

[jerry0]

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.

Well isn't the issue here lot of coins you can't trade directly with fiat though?  For example, many coins you can't even trade with usdt... you have to trade against btc only.  So imagine an altcoin that can only be traded against btc or eth and not fiat nor even usdt... how do you lock in your profits then?  Well isn't usdt thus your only solution?  Thus sell the altcoin for btc...then sell it for usdt... assuming you can't go from btc to fiat?  Like imagine say binance.  I assume you sell altcoin for btc... then just send the btc to a fiat exchange like coinbase/gemini/kraken and then convert it to fiat?


But if you want to not pay an extra conversion fee... whats wrong with keeping it in usdt... until you want to sell it for fiat or buy another altcoin?

[Prettyjing3]

In fact, if all legal currencies can be linked to Bitcoin, and even the world can use Bitcoin for trade, the decentralized nature of Bitcoin is very important, and every Bitcoin holder wants this. one day.

[maculeth]

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 not wrong, because it is true that whatever happens to fiat then it will not have a big impact on the crypto market. but stable the coins referred to here are coins whose exchange rate is the same as the dollar, let's call it usdt. Although the ups and downs of fiat (dollar) have no effect, and are stable coins that depend on a large crypto market such as bitcoin, in that context these coins remain stable, do not rise and fall in an extreme way.

[sgenuine]

The stable coins price is not related to Bitcoin, therefore Bitcoin pump or dump, the stable coins price remains pegged to fiat. But stable coins
are not fiat either, because fiat and cryptocurrency are two different things. But if fiat prices drop, then the stable coins go down too, because
the price is pegged to fiat. And you are correct, not all countries legalize stable coins.

Then it becomes unclear why the stablecoins are so stable. If they are not related to fiat, what are they then backed up and how the course is held? And the most exciting question is why these stablecoins are presented to users as one of the most reliable ways to invest?

[Coinsfera]

There is truth in what you say. Stable coins are neither exactly fiat currency nor exactly cryptocurrency. In fact, according to the statements made by Tether Limited, 1 USDT is pegged on the asset corresponding to the dollar, not the dollar itself. It is possible that if the dollar collapses, your asset may be still there or vice versa.

[ice098]

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?  

They are connected, if USD make a dip same will happen to USDT, search for the USD price now in the market then compare it to USDT there might be some decimals that are not the same but the thing is USDT or stable coins are pegged to usd 1:1 so whenever the dollar dips or dumps the value expect that it might goes as well to usdt. It is just that usdt is virtual dollar and usd is fiat and have a physical appearance and widely adapted all over the world with no restrictions, and monitored by government.