Stable coin or having USD in bank

[Dr.Bitcoin_Strange]

For the citizens that are in those countries, if they are really open to Bitcoin, then I think it's better to put their money in Bitcoin because if the price of Bitcoin starts to recover, then that's going to add value to their asset. You can trade to USDt if you want and only if you want to use the money, but if you don't want to use the money, then it's better to hold it in Bitcoin, or since your country's currency is depreciating in value, you can just trade to USDt and also convert it to your local currency when you wish to use the money.

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[Ayers]

For the citizens that are in those countries, if they are really open to Bitcoin, then I think it's better to put their money in Bitcoin because if the price of Bitcoin starts to recover, then that's going to add value to their asset. You can trade to USDt if you want and only if you want to use the money, but if you don't want to use the money, then it's better to hold it in Bitcoin, or since your country's currency is depreciating in value, you can just trade to USDt and also convert it to your local currency when you wish to use the money.

But what will happen to them if bitcoin does not recover and continues to fall further? We have no certainty about bitcoin's future.

Regarding choosing USD and stablecoin, I still think USD is much safer than stablecoin. There have been many cases of stablecoins losing their pegs and it shows that they are not as secure as we thought. Even USDT, the largest stablecoin, sometimes loses its stability temporarily, it can be said that bad things can happen to stablecoins at any time.

Bitcoin will be the best choice to put some money into long-term investment. In terms of savings, using USD is a safer option than local currency or stablecoins.

[G_Besar]

Inflation is on the high side and my local currency is increasingly losing its value against the US dollar. So keeping my savings in dollars gives me the opportunity to get the true value of my money, but between both choices. I would go for stablecoins because the procedure to open and fund a dollar domiciliary account could be really stressful and also putting into consideration bank and their stupid charges.

The consideration of using stablecoins to store currency values will indeed be more suitable for everyone at this time because considering that the US dollar can also be affected by current inflation and the impact of several countries that have considered using their own currency in international trade rather than US dollars. So there won't be anything wrong if you use stablecoins to store the value of your own currency apart from considering the cost which is cheaper than the fees required by the bank.

I know most stablecoins are centralized except DAI that's decentralized but saving in stablecoins gives me easy access to my funds. In other to mitigate the risk in event of depeging, I would diversify my stablecoin holdings into the well known ones like USDT, USDC, DAl.

The three stablecoins you mentioned are actually both good to use, but I only prefer two stablecoins out of the three you mentioned, they are USDT and USDC. Because apart from making it easier to manage it, it can also be easier when you want to exchange it in the market because it has so many pairs with other cryptocurrencies.

[EarnOnVictor]

If bitcoin price have increased, I can decide to convert some to USD or stable coin. Which one is better? Or is there other alternative which can be comparable with bitcoin in a way it would be independent and having full control characteristic.

This was the first question that ranged in my head when I started holding and trading Bitcoin on the spot market, and the answer is as simple as anything.

It's in two categories;

1. If I want to keep my money and not for investment, I would rather keep it in my bank account in USD. By this, it's saved from stablecoins issues as 1$ will always be equal to 1$.

2. If I want to keep on investing it and exchanging it periodically from Bitcoin to a stablecoin and vice versa, I will keep it in the stablecoin. But I've been dealing with and will only deal with USDT.

[kryptqnick]

It's common in my country to put money into USD or EUR to combat local fiat inflation, but people usually keep a stash of cash rather than take it to a bank if they do that. Having USD on hand of considered a good thing because then you can exchange it for local fiat very easily if you want to, and you don't need to deal with the bank for that.
There are stable coins that seem strong enough, but I prefer fiat over those. If something happens to the USD, the stable coin will lose its value as well. But it can also crash independently of the USD if there's a sudden surge of panic selling that whoever's stabilizing the price doesn't manage to get under control. There's also a lack of transparency of how backed up the stable coins actually are and with what exactly. I simply don't trust them.

[icalical]

If between those two then my case, I am from Indonesia and the currency wasn't too bad, but still up and down. I would prefer to save a USD in my Bank Account rather to just hold a centralized stable-coin, the main reason is because my saving was guaranteed by the Deposit Insurance Agency, so in case something happened to the bank I suppose it would be easier for me to get my money, and fortunately my bank gives me option to save USD instead local currency.

I would pick having USD in the bank over stable coin any time any day. Have you seen what is happening with stable coins? So many stable coins are facing a crisis. So many stable coins are backed by a consortium of companies like Goldman Sachs and Coinbase, and they are not as decentralized as it claims, with the ability to freeze accounts and blacklist addresses. There is just too much trouble having your money in stable coin. On the other hand, having USD in bank gives you the confidence you need to know that nothing will happen to it because of its stability and widespread use.

Man, of course I knew what's going on with the stable coin, the UST news is also kinda hard to be missed, that's why I said that I would prefer to save USD on my bank account, we are on the same page here, did you read my post at all?
Your reply quoting me look like that we are disagreeing, while actually we both agree on the same thing

[dothebeats]

I haven't done much research regarding this matter, hence my answer will probably be limited to what I already know or what I have just gotten from other posts here. Between stable coin and having USD in a bank, I'd say I'll go for USD. Despite possible problems regarding bank transactions and some going bankrupt, the USD has a history and has been established long enough that it gives me confidence that it will not just randomly disappear, not to mention the current crisis stable coins are facing, there is also the fear of companies holding them to just freeze your account. Hence, until I make my further research and expand my knowledge regarding stablecoins, I'd go for USD.

[_BlackStar]

I don't have USD - while I don't hold USDT either for the same reason. Apart from an emergency budget in fiat - I tend to prefer bitcoin and some other high value assets. This is an option I have considered since I became familiar with bitcoin - but I do not rule out the possibility that the value of bitcoin also sometimes fluctuates which makes my estimate of USDT shrink.

OP - you need to have an emergency budget, it will help you when things get tough financially. Of course you can keep USDT - but that doesn't protect you from a security perspective in the long term. For a period of time USDT will be useful for accumulating bitcoin - so I wouldn't completely exclude it from my plans.

[Unbunplease]

I don't have USD - while I don't hold USDT either for the same reason. Apart from an emergency budget in fiat - I tend to prefer bitcoin and some other high value assets. This is an option I have considered since I became familiar with bitcoin - but I do not rule out the possibility that the value of bitcoin also sometimes fluctuates which makes my estimate of USDT shrink.

OP - you need to have an emergency budget, it will help you when things get tough financially. Of course you can keep USDT - but that doesn't protect you from a security perspective in the long term. For a period of time USDT will be useful for accumulating bitcoin - so I wouldn't completely exclude it from my plans.

You should always consider that unexpected unexpected costs may arise. And if you bought bitcoin at one price, and at the time of the need to spend a certain number of coins the price fell by half - there will be losses. Therefore, you should have a certain amount of USDT

[EFS]

Cash is king. You can't trust banks, you can deposit whatever amount you want to but when you want to withdraw you have to give advance notice. You can't withdraw your own money from the bank whenever you want. You can't trust stablecoins either. There is always a possibility that they fall down from $1 = $1 stable coin pair.
It's best to keep the money in cash. Keeping cash in a safe at home seems like the best option for countries with high inflation like ours. Unless you hold it in BTC though, that's always the best option.

[AmoreJaz]

Cash is king. You can't trust banks, you can deposit whatever amount you want to but when you want to withdraw you have to give advance notice. You can't withdraw your own money from the bank whenever you want. You can't trust stablecoins either. There is always a possibility that they fall down from $1 = $1 stable coin pair.
It's best to keep the money in cash. Keeping cash in a safe at home seems like the best option for countries with high inflation like ours. Unless you hold it in BTC though, that's always the best option.

i believe it all boils down to what preference the individual wants for his money. some are just contented to deposit their money in the bank for safe keeping purposes. others, will buy some crypto who are into crypto market. at the end of the day, it depends on how you will keep your money. after all, it is your money, right?
but i can understand, some are just happy to have always cash on hand. for some business-minded people, they will invest their funds into the business they feel they have high chance of getting profits, why not? either way, you will be the one who exactly knows your financial needs. so either you put your funds in stable coin where you still need to convert it in USD for fiat needs or just leave inside bank coffers, is all up to you.

[Argoo]

Cash is king. You can't trust banks, you can deposit whatever amount you want to but when you want to withdraw you have to give advance notice. You can't withdraw your own money from the bank whenever you want. You can't trust stablecoins either. There is always a possibility that they fall down from $1 = $1 stable coin pair.
It's best to keep the money in cash. Keeping cash in a safe at home seems like the best option for countries with high inflation like ours. Unless you hold it in BTC though, that's always the best option.

The answer will probably be, as always, in the middle. Any type of savings has its advantages and disadvantages. Keeping money in cash means that you don't get the profit that you could get in the form of dividends if you kept it in the bank. Banks control your savings, may require additional information about them, may block them, but they are also protected by law and court. Storing in stablecoins means more freedom, they are convenient to use if we are also dealing with cryptocurrency transactions. But their storage also does not always bring profit, in addition, all the risks associated with them, including possible our own mistakes, fall entirely on us.

Therefore, I think that it would be right to partially keep your money in a bank, partially in stablecoins and cryptocurrency, and some part for everyday needs, in cash. This needs to be decided based on the legislation of the host country, inflation, family circumstances and other similar factors.

[irhact]

If bitcoin price have increased, I can decide to convert some to USD or stable coin. Which one is better? Or is there other alternative which can be comparable with bitcoin in a way it would be independent and having full control characteristic.

Stick to the devil you know instead of looking for a falling angel as you won't find one and if you do find one, you won't be able to predict their dirty tricks like when they'll crash due to low volume or market manipulations as many stablecoin has crashed before. Stablecoin are the most riskier among the two and they're been manipulated without any regulations so anybody can get away with manipulating it while the investors take the losses. Don't save your money in fiats but if you must do avoid stablecoin.

I'll prefer to safe my money in Bitcoin as I'm not afraid of the market volatility because Bitcoin might fall this very moment but that doesn't mean it is dead, it'll always rise back up but might just take a little time although when the time is right it'll rise back and give you profits

[avikz]

For countries with high inflation rate, I would definitely prefer to hold USD, EUR or Gold. Stablecoins will not be my obvious choice because they are not decentralised. So my obvious choice for stablecoin will be Bitcoin and ETH and nothing else.

Ideally, people should not hold stablecoins as an investment or for capital protection. Gold is a way better choice than stablecoins for these reasons. Even Silver is better than stablecoins in reality.

[panganib999]

If you're considering Stablecoins, why not crypto itself?

The point of holding assets is to successfully achieve two things: to earn profits from its ever-increasing value, or to prevent the devaluation of your wealth by holding valuable assets that stand the tests of time. Holding any form of currency for that matter is not going to provide you profit nor the security you need for the future. And much worse, you're basically betting on your failure especially during economic crises, where fiat is the first to fall in value out of all commodities out there. Only thing you really got going for stablecoins is that you can stake it for consistent money, but none of that's going to matter when your stablecoin/dollar becomes bed stuffing right?

[Aanuoluwatofunmi]

If bitcoin price have increased, I can decide to convert some to USD or stable coin. Which one is better? Or is there other alternative which can be comparable with bitcoin in a way it would be independent and having full control characteristic.

As for someone like me, i will always prefer to still hold my currency in bitcoin as long as an not ready to use it or exchange it for other purpose in emergency, if i insist on USD, the value of my money will depreciate over time because of the influence of inflation, if i leave it in stablecoin, it makes no much difference as well, because there will be nothing to increase about the money as well because it's pegged in USD, but when i hold in bitcoin and lucky enough for me it fall during the bull, i will make some additional income over it than holding in fiat or USDT.

[lockingbay]

I am not talking about people in United States or European countries that are spending Euro, or UK or countries like Kuwait, South Korea or Japan that their currency are not inflationary like the local currencies in countries in Africa, South America, Asia or some countries like Turkey.

The people  in countries that have high inflation rate prefer to save foreign currencies like United States dollar. Stable coin was created and most people from these high inflation countries prefer to save stable coins.

If you have your money in banks, you do jot have the complete control. If you save stable coins, most of them are centralized and you do not have complete control and they can fall out of peg and be lesser than the money they are pegged with they become. Example of the pegged coin was Terra Classic USD (UST) which was $1 before but now $0.01186444

If bitcoin price have increased, I can decide to convert some to USD or stable coin. Which one is better? Or is there other alternative which can be comparable with bitcoin in a way it would be independent and having full control characteristic.

I will prefer USD still unless usa dethroned from crown and another currency becomes global hub like BRICS currency.

[vv181]

~Which one is better? Or is there other alternative which can be comparable with bitcoin in a way it would be independent and having full control characteristic.

The comparator, which is either FIAT or stablecoin, is truly distinct from Bitcoin. You can not have such currency that is comparable, especially the independency.

One thing to note, based on my knowledge, those who are exposed to high inflation rate does not necessarily chooses foreign currencies as their choice, there are many other options such as gold and such. But if we reduce the choice between a FIAT and stablecoin, certainly that if one is able to safely save in a FIAT, they should do this option. Using stablecoin would add unnecessary burden with how to protect its key and most importantly the entity that creates the stablecoin itself.

[Smartvirus]

You’re better off having USD or EUR in your local fiat banks than having USDT in some centralized exchange.
What’s the saying about USDT, it’s said to be dollar pegged and for every USDT you have on an exchange, there is a physical equivalent of it in some bank or reserve some where.
If that be the case, what’s the difference with you having them dollar yourself in your local fiat bank account!

Where the difference comes in is in its usage as, you could easily use USDT on exchanges for active trading but, not so when it comes to having money on the bank. You still need to buy USDT.
On another hand, you could easily transfer USDT to the other part of the world but not so much for fiat.
Basically, it’s about what’s your intent on this hodlings. If you haven’t got any and you just want to be safe hodling one of it, fiat dollar is much better.

[Fiatless]

See what happened in Nigeria few days back, a UK based Nigerian citizen was sending money to bank account every month for years, and when she came back to check her bank account and wanted to withdraw money and what she saw just $4 and the money she sent was about $100,000 and she sued the bank to court and the court admitted that the money was withdrew by someone in the bank and the court said the bank should pay the money. So if such scenario Happened in the stablecoins savings, who will pay back the money. In stablecoin you will do KYC till you will become tired.

Most stable coin issuers or creators are not registered or regulated by any country, which means suing them can be complicated. Most of them are operated by inexperienced and unqualified individuals thay lack basic financial management skills. The accounts or books of these exchanges are kept secret and not audited periodically. I would prefer to keep my money in dollars in a bank. Banks are insured by national deposit insurance companies so customers might not lose their deposit in case of bankruptcy. You don't have any assurance to get back your funds if a stablecoin collapses or loses its value. Like you also said Mate, you have the privilege to seek legal action in the court against the bank in the country because it is registered.