Tether and BUSD and usd inflation for long term savings?

[tethernewbie]

Hi
I am newbie about saving investments on my private wallets and some market wallets (binance etc.).
I have BTC, Tether and BUSD in my wallets. I dont want to risk it with buying btc and any other coins. Sometimes I withdraw usdt and busd by converting to my own domestic currency.
But holding money with usdt and busd is also has risks and plus usd inflation devalues the money over long term.
So, what do you suggest for me?

[1715277511]

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[1715277511]

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[1715277511]

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[Helena Yu]

Any kind of stable coins are stick with fiat value e.g. USD, Euro, Yuan etc and it doesn't make sense to hold for long term amount because fiat is inflationary asset. If you hold any stable coins e.g. BUSD, USDT, real USD, real EURO etc the price is always $1 but every year the value will keep decrease since $1 right now is worth for 10 candies but the next 2 years your $1 is only worth for $7 candies.

If you have purpose to convert your domestic fiat to USD or EURO because your domestic fiat's inflation is really high, it's better for you to convert it to gold. Gold is a store of value and it doesn't make you rich, but it can secure your wealth. But I hold Bitcoin because it's really safe and secure, also it's really have a bright future.

[NeuroticFish]

Hi
I am newbie about saving investments on my private wallets and some market wallets (binance etc.).
I have BTC, Tether and BUSD in my wallets. I dont want to risk it with buying btc and any other coins. Sometimes I withdraw usdt and busd by converting to my own domestic currency.
But holding money with usdt and busd is also has risks and plus usd inflation devalues the money over long term.
So, what do you suggest for me?

I don't like coins like USDT or BUSD. Such coins have 2 problems:
1. They are just as much eroded by inflation like the normal USD
2. They are issued by private companies and this sector is not properly regulated; so you have to trust those companies they'll keep their word. As bitcoiner I was taught to not trust individuals / companies (plus the fact you keep your coins in centralized exchanges' pockets poses another risk).

So you are under even higher risk than holding USD and also have your money eroded by (USD's) inflation. Not a good deal imho.


What I suggest? Especially since you don't want to invest into Bitcoin I have no suggestion for you. But no matter, I don't like to tell people where to spend their money, they have to decide for themselves.
If the money you're talking about is a lot, then usually a mixed bucket of investment vehicles is the key - bitcoin, real estate, gold, stocks, bonds - to allow your money grow (what you lose from one going down you may gain from another one going up). But if you have that much money you better hire somebody handle all this instead of asking from random people over the internet.

[electronicash]

the inflation makes it risky to hold the stablecoins. they may look like the value has gotten stronger compared to the value of your local currency but the purchasing power is not getting stronger.

you may have to start buying BTC or any altcoins you prefer because this could just be the hedge for that inflation. stablecoins are not for long-term saving but Gold and BTC.

[tethernewbie]

Hi
I am newbie about saving investments on my private wallets and some market wallets (binance etc.).
I have BTC, Tether and BUSD in my wallets. I dont want to risk it with buying btc and any other coins. Sometimes I withdraw usdt and busd by converting to my own domestic currency.
But holding money with usdt and busd is also has risks and plus usd inflation devalues the money over long term.
So, what do you suggest for me?

I don't like coins like USDT or BUSD. Such coins have 2 problems:
1. They are just as much eroded by inflation like the normal USD
2. They are issued by private companies and this sector is not properly regulated; so you have to trust those companies they'll keep their word. As bitcoiner I was taught to not trust individuals / companies (plus the fact you keep your coins in centralized exchanges' pockets poses another risk).

So you are under even higher risk than holding USD and also have your money eroded by (USD's) inflation. Not a good deal imho.


What I suggest? Especially since you don't want to invest into Bitcoin I have no suggestion for you. But no matter, I don't like to tell people where to spend their money, they have to decide for themselves.
If the money you're talking about is a lot, then usually a mixed bucket of investment vehicles is the key - bitcoin, real estate, gold, stocks, bonds - to allow your money grow (what you lose from one going down you may gain from another one going up). But if you have that much money you better hire somebody handle all this instead of asking from random people over the internet.

Actually my spot is like half btc and half usdt/busd . So I already invested btc. What i meant is that currently the btc price is went up. So I dont want to purchase btc from higher prices. What Im trying to do is making a balance between volatile and stable coins to protect my assets. But I scare of the usd inflation bcz of long term. Maybe I have to wait BTC to goes down again and buy or withdraw my tether to bank account and purchase gold or stocks etc...

[_act_]

In this period of time, I can advice you to just buy bitcoin because the price is still low.

I am newbie about saving investments on my private wallets and some market wallets (binance etc.).

Binance is an exchange, for trading and not for holding or saving coins. If you want to save coins, you should use a noncustodial wallet. Always know how to differentiate between wallet and exchanges and know what custodial wallets are too, only use the ones you can control your coins which are the noncustodial wallets, use only the trustworthy noncustodial wallet because some can be for scammers.

[NeuroticFish]

Actually my spot is like half btc and half usdt/busd . So I already invested btc. What i meant is that currently the btc price is went up. So I dont want to purchase btc from higher prices. What Im trying to do is making a balance between volatile and stable coins to protect my assets. But I scare of the usd inflation bcz of long term. Maybe I have to wait BTC to goes down again and buy or withdraw my tether to bank account and purchase gold or stocks etc...

Your expectations and my expectations on (short term) bitcoin price are completely different. Clearly one of us is wrong, time will tell which one of us.
Imho the price didn't go up that much.

I understand that you are scared of inflation. But you're also afraid to take risks in investing. This being said, you're in a deadlock/no-go situation. I mean that there are 2 possible directions and you don't want neither of them. So.. I am not sure what you are expecting to find out...
Do you want us tell you "buy bitcoin, it will certainly go up from now on"? We cannot do that, we don't have crystal globes. Our expectations is one thing, reality may or may not go accordingly.

[BlackBoss_]

USD has the USA. government and their central bank behind and even they print money very quickly, they are still better than stable coin companies.

Purchasing power of the US. dollar is decreasing with time because of inflation. The pandemic shows that US. government can hyper print their fiat currency and result in hyper inflation.



With stable coins from stable coin companies, we don't know how they actually back their stable coins with good assets which should be US. dollar. $UST is very good example of bad treasury for their stable coin and its peg.

[Jating]

Hi
I am newbie about saving investments on my private wallets and some market wallets (binance etc.).
I have BTC, Tether and BUSD in my wallets. I dont want to risk it with buying btc and any other coins. Sometimes I withdraw usdt and busd by converting to my own domestic currency.
But holding money with usdt and busd is also has risks and plus usd inflation devalues the money over long term.
So, what do you suggest for me?

Not good to used those stable coins for inflation, I mean they are pegged to USD 1:1 so how can your protect yourself, it's better to look for coins like Bitcoin to be honest.

You are in crypto, everything is at risk here, although it's less in Bitcoin in my opinion as compare to most altcoins.

And one thing about this stable coins is that they are centralized as well and there are questions if Tether for example is really back up by 1:1 or fractional reserves.

[Darker45]

You have a number of options.

1. You can keep it in fiat or stablecoin. It's not bad to have savings. Whether you like it or not, you have to have some. That's regardless of inflation. Unforeseen expenses may arise anytime. Apart from that, it's also better to have a standby amount for dips and corrections.

2. Depending on your savings amount, you could actually use a portion of it to buy more Bitcoin. Bitcoin is still cheap today.

3. Why don't you diversify your investment portfolio and buy other financial or even real assets aside from Bitcoin? You can also invest in gold, stocks, bonds, treasuries, real estate, and others.

4. You could use it for a business of your liking.

[tethernewbie]

USD has the USA. government and their central bank behind and even they print money very quickly, they are still better than stable coin companies.

Purchasing power of the US. dollar is decreasing with time because of inflation. The pandemic shows that US. government can hyper print their fiat currency and result in hyper inflation.

https://www.visualcapitalist.com/wp-content/uploads/2021/03/Purchasing-Power-of-the-U.S.-Dollar-Over-Time.jpg

With stable coins from stable coin companies, we don't know how they actually back their stable coins with good assets which should be US. dollar. $UST is very good example of bad treasury for their stable coin and its peg.

Yes the usd has inflation but trust me its still low compared to domestic currency. But this is not means that it wont be devalued at the end of the year. There are some banks which gives interest rates for usd. Why there is no interest option for stablecoins like tether and busd?
https://www.bls.gov/data/inflation_calculator.htm 2000$ January 2022 is became 2111$ at the end of 2022 bcz of inflation.
Maybe im gonna decide this: lets say i have 3000$ on busd and tether, i will wait for bitcoin dips and purchase by half of it. Other half will be withdrawn to bank account and purchase stocks or gold with them.

[hatshepsut93]

There's no perfect solution. USD gets eroded by inflation. In the long run you will lose a lot of value with storing all your wealth in USD. BTC is unpredictable and volatile. Volatility hurts short-term planning, if Bitcoin crashes but you need to convert it to fiat, you could be forced to take a loss. Long term is also a problem, no one has any idea how much Bitcoin would be worth. All the models have proven to be wildly inaccurate. Price predictions from "exprts" are just baseless speculation and hopium.

This is not to say that these two options have no place in anyone's portfolio. But portfolio should be diverse, so if one your assets fails, you are not completely ruined, as opposed to owning one type of asset. So things like gold, real estate, commodities should also be considered.

But there are also differences between managing a $1,000,000 portfolio and $1,000. If it's $1,000 there's obviously going to be no real estate or gold, just keep it in some proportion of USD and BTC that you are comfortable with.

[cryptoaddictchie]

I dont want to risk it with buying btc and any other coins. Sometimes I withdraw usdt and busd by converting to my own domestic currency.
But holding money with usdt and busd is also has risks and plus usd inflation devalues the money over long term.
So, what do you suggest for me?

If you dont want to risk it then its up to you. The value of your stablecoin will be based on the value of USD which inflated in the long run. You can always sort out or figure out to put that money into bitcoin which has a fighting chance to increase its value. Im not saying its gonna be boom or 10x its price but a volatile asset which has a fixed supply would definitely be worth it in the long run.

[fullhdpixel]

But holding money with usdt and busd is also has risks and plus usd inflation devalues the money over long term.
So, what do you suggest for me?

If you are satisfied with the amount of money you've invested in bitcoin and don't want to buy anymore, and if you are going long term, then do one thing. Buy a hardware wallet, like Ledger Nano X, and keep your Bitcoins and any other cryptocurrencies that you might buy for the long term in that wallet. Keep your private keys somewhere very safe and forget about that. With the remaining money, cash it out and buy some gold, and keep that somewhere safe as well. Gold will definitely be worth way more, than it is today, in the long run, and that will save your money from getting devalued due to inflation.