Stablecoins is a good way to keep and save money or not?

[Oilacris]

i am only using stablecoin for trade futures and hold for short term for buy when market at the dip. and i am not gonna hold for long term but if you still wanna hold it keep it away from algorithm stablecoin and keep diversify to other stablecoin

You are totally right, stablecoins aren't suitable for holding for a long period of time. I keep some stablecoins as well, but for trading, waiting for market dips to buy bitcoin or altcoins, once not in use I will convert to fiat. We're here to invest, saving and holding stablecoins won't benefit us.

OP, if you want to save you should use fiat instead of stablecoin, I think in this case fiat is safer than stablecoin, because of what happened we should be more careful with stablecoins, they are not as safe as they we think.

Stable coins is just really good for trading or when you do make out active buy and sells and considering this is also a common thing for someone to make use whenever they are tending to make themselves bit safe when it comes to volatility which they do really make out some conversions from crypto to stable ones but later on when they do see some opportunity then it would be
doing vice versa.

If we do speak or talk about keeping it on our wallet for long term aspect then i would rather suggest on buying bitcoin itself because you could potentially make out profits on just
simply holding not on stable coins considering the price isnt really moving at all or in small percentage which it isnt really worth.

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[Xal0lex]

What do you think about stablecoins, some scandals around them and their future? It is interesting to hear the opinion of the members of bitcointalk

Stablecoins are not a panacea in terms of saving your money. There are also high risks to losing your money: centralization, inflation, insufficient collateral, loss of peg, all of which threaten just about any stablecoin. Algorithmic stablcoins have failed and are the most dangerous of all stablecoins, and should be avoided. If you do use stablecoins, it is better with diversification across multiple blockchains, do not store all assets in one stablecoin, as they are just as dangerous as other cryptocurrencies during market turmoil.

[sana54210]

As answers from some member posts here, there is no guarantee that your money is safe when owning a stablecoin, I think if CBDC as developed countries think is implemented then it will be good because some countries make stable digital currencies, whereas coins are stable up to now it suffers from many unresolved issues like fiat collateral reports it has and other things, when you profit from trading it is better to switch to Fiat only, because investing in stablecoins for long term seems risky.

I think it wouldn't be trusted to have CBDC neither, that would be a wrong idea and I wouldn't really consider it a reasonable thing to trust government more than a company. Sure, a regular company wouldn't really be a good thing to trust and there is a big problem with a chance that you wouldn't be ready in case if they just fall, like declare bankruptcy or something like that.

But, governments could get back on their word, or just print a trillion more and make all of it worthless again. Hence, I always prefer crypto, but if I am going to prefer a stablecoin, then I will go with Binance, they are as trustable as any other thing to me.

[shinratensei_]

It's the best way indeed in keeping your wealth from deteriorating and being eaten by the massive volatility after you're finished with your investment and trading.
though there are some rumor going around in regard of USDT being doubtful because they created massive supplies of their tokens, there are other alternatives like BUSD that's guaranteed by the big companies behind.

[okorieemmanuel]

What do you think about stablecoins, some scandals around them and their future? It is interesting to hear the opinion of the members of bitcointalk

 I am of the opinion that stable coin is a better way of saving money in the current downward trend of major cryptocurrency such as bitcoin... Some people may not admit it but the fact remains that many people lost money with the current price of bitcoin, ethereum etc. Nobody wants to lose his/her money value in crypto for any reason so it's better to save it in a good/ reliable stable coin for now.

[Questat]

What do you think about stablecoins, some scandals around them and their future? It is interesting to hear the opinion of the members of bitcointalk

 I am of the opinion that stable coin is a better way of saving money in the current downward trend of major cryptocurrency such as bitcoin... Some people may not admit it but the fact remains that many people lost money with the current price of bitcoin, ethereum etc. Nobody wants to lose his/her money value in crypto for any reason so it's better to save it in a good/ reliable stable coin for now.

Perhaps, nobody suffered losses from Bitcoin if they will just hold. Even investing stablecoins, can also be possible. Imagine what it happen to Luna, many people had been putting their money on it thinking about profit and secured investment but unfortunately, it was all just gone and it left losses to the holders.

As long as you know how to hold Bitcoin, or just buy the dip and sell high - you're gonna be in profit, not in losses.

[sayaya17]

It's the best way indeed in keeping your wealth from deteriorating and being eaten by the massive volatility after you're finished with your investment and trading.
though there are some rumor going around in regard of USDT being doubtful because they created massive supplies of their tokens, there are other alternatives like BUSD that's guaranteed by the big companies behind.

I also usually keep my capital in stablecoins to avoid the volatile crypto market. And also sometimes the profit I make from trading crypto
I temporarily store in stablecoins. Actually the presence of stablecoins is very useful, moving funds from one exchange to another is also quite
effective using stablecoins. It's true as you said there are a lot of bad rumors about USDT, therefore we must be wise and careful when storing
money in stablecoins. Moreover, what happened to UST proves that not all stablecoins are safe for storing money, we should not keep our money
in just one place. That's why I don't just keep my money in USDT, but I keep it in several stablecoins, thus minimizing risk.

[cabron]

It's the best way indeed in keeping your wealth from deteriorating and being eaten by the massive volatility after you're finished with your investment and trading.
though there are some rumor going around in regard of USDT being doubtful because they created massive supplies of their tokens, there are other alternatives like BUSD that's guaranteed by the big companies behind.

I also usually keep my capital in stablecoins to avoid the volatile crypto market. And also sometimes the profit I make from trading crypto
I temporarily store in stablecoins. Actually the presence of stablecoins is very useful, moving funds from one exchange to another is also quite
effective using stablecoins. It's true as you said there are a lot of bad rumors about USDT, therefore we must be wise and careful when storing
money in stablecoins. Moreover, what happened to UST proves that not all stablecoins are safe for storing money, we should not keep our money
in just one place. That's why I don't just keep my money in USDT, but I keep it in several stablecoins, thus minimizing risk.

The risk like UST will come more often than what we saw this year. But the risk in stablecoin in the future is more dire that we might not even see it coming unlike with Luna's UST.

If we broaden the term "centralized" it only means they control it and if you  have stored millions of USDT in their wallet while the government aka SEC is prosecuting everything in crypto, it may not be safer for stablecoins stored in a private wallet because they can freeze them and will not be able to send it any where.

[Silberman]

What do you think about stablecoins, some scandals around them and their future? It is interesting to hear the opinion of the members of bitcointalk

The reason why it does not make sense to hold those coins for the long term is that you are adding an additional risk with no upside at all, if the fiat currency which is being used to back the stable coin collapses then the stable coin collapses as well, however if for some reason the centralized entity issuing the stable coin collapses then the stable coin goes down with it, however what do you obtain out of this additional risk you are incurring? Absolutely nothing, so you may as well just hold your fiat and be done with stable coins.

[zasad@]

UST stablecoin was available for staking at 20% per annum. This system was originally a pyramid scheme, because such projects with guaranteed income in dollars do not exist in financial markets. If you see this, then stay away from such stablecoins.

[tvplus006]

I think it wouldn't be trusted to have CBDC neither, that would be a wrong idea and I wouldn't really consider it a reasonable thing to trust government more than a company. Sure, a regular company wouldn't really be a good thing to trust and there is a big problem with a chance that you wouldn't be ready in case if they just fall, like declare bankruptcy or something like that.

But, governments could get back on their word, or just print a trillion more and make all of it worthless again. Hence, I always prefer crypto, but if I am going to prefer a stablecoin, then I will go with Binance, they are as trustable as any other thing to me.

Do you really trust the stablecoin, which is backed by fiat, more than the dollar? After all CBDC is just one of the forms of fiat, along with cash and non-cash. So in any case, CBDC looks preferable for storing funds compared to centralized stablecoins. If you really want to be independent from the government, then you need to use decentralized stablecoins.

[Abiky]

Stablecoins are used for trading, not holding. You would not want to be caught by anything bad that could happen if ever they broke down.
It makes trading easier and that's the only purpose I could see for their existence. The other one may be the for ease in withdrawals for countries that is not accepting other cryptocurrencies.
If you want a crypto asset to HODL there are great choices instead of something that is pegged with $. I'd rather keep a fiat dollar than a crypto.

Exactly. No one would take stablecoins as a serious long-term investment after what happened with Terra's UST stablecoin. They're only useful for day trading, but that's it. If you're keen on saving your money for a rainy day, then look no further than cashing out your crypto for Fiat. You're safer with banks than you'll ever be with a private company. Governments need to up their game by regulating the entire stablecoins industry. Only then, investors will be confident their money is safe no matter what. There are many stablecoins on the market right now, but only those that are "collaterized" are most likely to survive in the future. As long as you play it safe, you'll have nothing to worry about. Just my thoughts

[virasisog]

UST stablecoin was available for staking at 20% per annum. This system was originally a pyramid scheme, because such projects with guaranteed income in dollars do not exist in financial markets. If you see this, then stay away from such stablecoins.

Stablecoins are not coins for investment and long-term holding but rather just being used in transactions related to trading. They're just useful as base coins when trading from crypto to fiat but as not reliable when it comes to holding. As for me, they're just functional during trading transactions and for keeping your funds but don't expect any profit since their prices are stable.

[Vaskiy]

These are just a way to keep the portfolio undisturbed even when the market is bullish/bearish. For users who have better learning about the market movements can use it for the purpose of increasing the portfolio. While doing so, it can give profit as well as loss. Nowadays there are large number of stablecoins available in the market. Cryptocurrency network is big as a sea. We need the learning only then it is possible to swim and come out.

[nurilham]

Let's say that stable coins are not an excellent means of investment they are not suitable for a long term hold strategy the only usefulness at least for me is the exit from day trading in order to preserve daily earnings

Stablecoins aren't for investment, they can't increase their values significantly. If someone wants to buy a coin for investment, he should buy those coins with high volatility, while stablecoins have low volatility. Stablecoins are recommended to invest for the long-term or short-term, they can't give us enough profits. But if we buy stablecoins to keep our money temporarily, I think it is not a bad idea. Yes, one of the examples is when we want to secure profits from trading, we can convert it to stablecoins.

[LittleBitFunny]

i am only using stablecoin for trade futures and hold for short term for buy when market at the dip. and i am not gonna hold for long term but if you still wanna hold it keep it away from algorithm stablecoin and keep diversify to other stablecoin

You are totally right, stablecoins aren't suitable for holding for a long period of time. I keep some stablecoins as well, but for trading, waiting for market dips to buy bitcoin or altcoins, once not in use I will convert to fiat. We're here to invest, saving and holding stablecoins won't benefit us.

OP, if you want to save you should use fiat instead of stablecoin, I think in this case fiat is safer than stablecoin, because of what happened we should be more careful with stablecoins, they are not as safe as they we think.

Stable coins is just really good for trading or when you do make out active buy and sells and considering this is also a common thing for someone to make use whenever they are tending to make themselves bit safe when it comes to volatility which they do really make out some conversions from crypto to stable ones but later on when they do see some opportunity then it would be
doing vice versa.

If we do speak or talk about keeping it on our wallet for long term aspect then i would rather suggest on buying bitcoin itself because you could potentially make out profits on just
simply holding not on stable coins considering the price isnt really moving at all or in small percentage which it isnt really worth.

Of course, if you want to invest, bitcoin is the best and most profitable option. But for savings and choosing between fiat and stablecoins, I'd rather keep fiat than stablecoins. In the long run, fiat currency will lose value over time but stable coins may lose their peg or be frozen at any time without us being informed in advance. In general, risks are always lurking when we hold stable coins for a long time.

[rugrats]

What do you think about stablecoins, some scandals around them and their future? It is interesting to hear the opinion of the members of bitcointalk

The name itself says that stablecoins won't make a profit, so you shouldn't invest and hold it. Why would you want to save into an asset with no volatility, no volatility means no return. I would recommend that you consider investing in bitcoin, the top coins will give you a better chance of making a higher return and are safer than those that are stable.

[hashrateproducts]

Stable coins are not for investment rather for saving of funds. Traders that usually convert their coins to stables coins, thus strategy have saved many of them. Like the during the dip, those whohave already convert their coins to stable coins like BUSD and USDT have escape liquidation while the ones still holding Bitcoin when it was at it's ATH and getting dump to $20k are in big loss. Stable coins have made me escape loss countless number of times. But investing in other coins like Bitcoin will pump your portfolio.

[fuer44]

it can not be a guarantee because all crypto coins (including stablecoins like usdt others) can also go down along with a bear market wave. but the difference with other coins, stablecoin the decrease is not significant and also the increase is not significant, only a few percent but still not 100% safe. if you choose only to save money, better save it in the bank or buy gold.

[icalical]

What do you think about stablecoins, some scandals around them and their future? It is interesting to hear the opinion of the members of bitcointalk

I won't hold any stablecoin for longterm, I don't think its an investment coin. Most of the time I only use it to send some payment, other time just hold it on exchange when the market sideways, so I won't lose any money, and I can enter the market quickly. That's all I do with stable coin, never an investment, the value will decrease just like its Fiat and we never know if the company behind this coin actually has the asset that back up the coin.