Stable coin or having USD in bank

[KingsDen]

I have read through the Op very well. And I understood the point that he made the post. I can see that some persons are answering without knowing the basics upon which the topic creator made this post. For people from the developing countries whose currencies are always losing value on daily basis. I think it is better you have a real-time bank account and save in dollars. Depending on centralised stable coins, which can have issues any day in not encouraging. It may get hacked or depegged to dollar

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[savetheFORUM]

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.

It basically depends on what you aim to do with the money that you are saving up. If you are a trader, your best bet is a stablecoin of course, and one that you believe in or that is mostly being used by the market. But, if you are not planning on investing in cryptocurrencies or trading with the money, you should better buy USD and keep them in an account that is safe and that won't just eat up your money or asks you to pay fees or taxes every single time you might make a transaction.

There are a bunch of trusted stablecoins out there, the most used of them being USDT. The one you mentioned, UST, was a very bad experiment by Terra Labs because they didn't peg it with actual USD and wasn't backed by real assets kept as reserve but it was an algorithmic stablecoin that failed and made the whole project fail as well.

[GeorgeJohn]

In my opinion, stablecoins are better than USD in banks. You have full control over your money, you can transfer it to cryptocurrency or fiat at any time. Banks can go bankrupt at any moment, they can close your account at any moment, request documents about the origin of funds

The thing is that USD in the bank only been kept in bank without appreciating in value or degrading in value, this is the two things that is been involved in it, because in fiat currency when it's be stored the only challenge that come to its way is when their is a inflation and inflation something will make USD to be less important than stablecoins, but both is on equal of advantages and disadvantages, because if inflation have not exists that means that your USD still have a better value, while in stablecoins the value fluctuates because of the much conversion from one coin to the other, and sometimes you might convert it to bitcoin and still it falls, so I don't know exactly the one we should prefer as the most profitable and reliable one.

[DrBeer]

Let's just say that both options are equally good and... equally bad.)

In today's world, banks cannot be called a stable storage place. That's one.
Stablecoins, in some sense, are also difficult to call a crown of stability - then the collateral goes somewhere, then scam, then blocked on the exchange.....
In a word, both options have risks. Probably the best option would be still a wider diversification of funds, it is better to limit yourself to only 2 options, and such options where there are quite real risks.

[uchegod-21]

This is such a difficult decision to make because the two options have their good and bad sides.
The stable coin is good because it is free from bank charges. Now, considering the fact that the stable coin has a centralized regulatory body, what happens when one wakes up one morning to see that the value of the stable coin has fallen below USD value? You know what it means already huh?

[summonerrk]

~~~.

I live in a country where the constant inflation rate is considered high even in good times. Therefore, all citizens save extra money that they can put aside from their salaries in foreign currency. Specifically in US dollars. The opinion has long been fixed that the right solution would be to link the prices of apartments, as well as cars to US dollars. That's why I like to save dollars, unlike Stable coins, it can't be taken away from me at one moment.
After all, everyone knows that any stable coins are centralized, and they can all depreciate at any time, as the author of the topic described. Therefore, it is better to have bills in your pocket than stable coins on the balance. Let the latter be instantly resold into bitcoin.

[Hispo]

I have read through the Op very well. And I understood the point that he made the post. I can see that some persons are answering without knowing the basics upon which the topic creator made this post. For people from the developing countries whose currencies are always losing value on daily basis. I think it is better you have a real-time bank account and save in dollars. Depending on centralised stable coins, which can have issues any day in not encouraging. It may get hacked or depegged to dollar

The problem is that in many cases there are countries whose banks are not reliable either to store one's hard earned dollars.
My country, Venezuela, es a good example of it, besides being an official bank of the government, we all suffered limited withdrawals some years ago. People could not access to the cash they deposited in previous months or was part of their salary.

That is one of the biggest reasons people prefer to use Binance and other centralized exchanges to buy and store stable coins, because we all know it is less likely Binance will hold funds as a bank in a socialist country . Actually, if you search for it on the internet you will realize people of Cuba are getting restriction on their withdrawals as well these days?

Would you ever recommend a Cuban citizen to deposit their USD in their state sponsored bank accounts?  

I would not.

[rat03gopoh]

That's why I like to save dollars, unlike Stable coins,

Where do you keep your dollars? If your local bank allows you to store foreign currency, that's pretty good. In fact, most of the freelancers in my country keep dollars in private financial platforms which are more subject to corporate-based jurisdictional regulation, their difficulty is in the event of transaction disputes. Dispute resolution is easier when dealing with services from the country itself.

[summonerrk]

That's why I like to save dollars, unlike Stable coins,

Where do you keep your dollars? If your local bank allows you to store foreign currency, that's pretty good. In fact, most of the freelancers in my country keep dollars in private financial platforms which are more subject to corporate-based jurisdictional regulation, their difficulty is in the event of transaction disputes. Dispute resolution is easier when dealing with services from the country itself.

In my case, everything is much simpler.
I buy cash dollars in the bank, after which I do not put them on the account at interest, but take them with me. I don't like the terms of investing in US dollars as they are about 3 percent per month. This is too small a percentage compared to the risk that the bank may prohibit ina from withdrawing dollars from the account.
And I have already had the experience of such dollar retention in my country! So the risk is too big.

Of course, I do not transfer all my money into dollars without exception, I maintain diversification, so I also buy cash in euros. And of course I invest in cryptocurrencies, as well as a little in shares of industrial campaigns and banks.

[Wend]

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.

It basically depends on what you aim to do with the money that you are saving up. If you are a trader, your best bet is a stablecoin of course, and one that you believe in or that is mostly being used by the market. But, if you are not planning on investing in cryptocurrencies or trading with the money, you should better buy USD and keep them in an account that is safe and that won't just eat up your money or asks you to pay fees or taxes every single time you might make a transaction.

There are a bunch of trusted stablecoins out there, the most used of them being USDT. The one you mentioned, UST, was a very bad experiment by Terra Labs because they didn't peg it with actual USD and wasn't backed by real assets kept as reserve but it was an algorithmic stablecoin that failed and made the whole project fail as well.

UST is not an experiment but a ponzi project and many people have spoken against it since DoKwon came up with the idea but people were blinded by the high returns and ended up falling into his trap. But other stable coins like USDT or USDC will not be safer than USD in every way since they are also pegged to USD. What happens when someone intentionally manipulates USDT or its network gets hacked? When comparing stablecoins and USD, USD is still the safest choice.

[DrBeer]

~~~.

I live in a country where the constant inflation rate is considered high even in good times. Therefore, all citizens save extra money that they can put aside from their salaries in foreign currency. Specifically in US dollars. The opinion has long been fixed that the right solution would be to link the prices of apartments, as well as cars to US dollars. That's why I like to save dollars, unlike Stable coins, it can't be taken away from me at one moment.
After all, everyone knows that any stable coins are centralized, and they can all depreciate at any time, as the author of the topic described. Therefore, it is better to have bills in your pocket than stable coins on the balance. Let the latter be instantly resold into bitcoin.

In general, this is the value of the cash dollar "in your pocket" - it is absolutely liquid, there is a constant demand for it, it is easy to manage. Yes, there are problems from the series of "how do I get 10 million dollars across the border" - but something tells me that this problem does not concern us much
As I've already written - neither bank nor stablecoin is an ideal solution, for the very reason that the bank/exchange/stablecoin issuing company can restrict access to them, the legal owner, for many reasons. That's why I always recommend diversifying savings and storage mechanisms

[GxSTxV]

Well let me share with you how bad centralization is in our region and we are suffering from it and why I may risk saving my money in a stable coin rather than a bank or our local banks. First of it all our currency is so worthless in market and decreasing its value every year compared to Euro or Dollar that means nobody will risk saving his money on local currency and keeping it in a bank.
But people would say that we can easily save it as Euro in a bank because it’s allowed in many of local banks here, well let me tell you that nobody can exchange our local currency to Euro with the price of bank instead the only place you can exchange is the black market and it’s almost double price of bank add to that the high volatility price everyday and it’s the reason why you might be taking a lot of risk if you exchange your money and save it in bank that there’s a higher chance you will lose value when you need to exchange it again to local currency.
Even that stable coins are also very risky at some point but at least you won’t go through much steps and won’t be limited to chose between other coins when you decide to exchange for example those stable coins to Bitcoin. I will always go to decentralization over centralized system which is 10 times worse here in our region.

[poodle63]

same thing I guess, stablecoin in general is just reserved money that being represented digitally through tokens.
when it comes to saving, I guess both functions the same, but its just that stablecoin is owned by some company in which have authority towards your money.
i would be more inclined to save my money in bank since you know its guaranteed to be safe, and because its just simply more convenient, i don't think there's someone out there
that willingly saving in stablecoin for long though, unless they really trust that the stablecoin not gonna be collapsing anytime soon.

[The Sceptical Chymist]

If bitcoin price have increased, I can decide to convert some to USD or stable coin.

If the question is whether you should hold cash in the form of a stablecoin or some arbitrary amount in a bank, I'm not sure where the above statement comes into play--if you've got bitcoin and it's increasing in value, you might not want to convert it into any form of fiat currency (or a representation of same, like a stablecoin); you should probably hang on for the ride, no?

Also, if "owning" your money is of any concern to you, then neither choice is a good one IMO.  Anyone who truly wants total control over their money would probably be a permabull of precious metals, because you hear that kind of talk all the time on gold & silver discussion boards--or on this forum, too (lol).

And neither choice is going to beat inflation unless you're using some sort of bank product, like a money market account, a CD, or bonds, and those things don't qualify as "keeping money in the bank".  They're basically investments.  And bleh.  Stablecoins turn me off, man.  I just think they're shady as hell.

[snowpega]

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.

kinda sage words well i think the prices of dollar seems to go high in future so i think we should hold some usd and we can sell them when the value will be on its peek but if you are thinking of holding cryptocurrency you can also hold usdt and when the value of usdt goes up you can than convert these usdt into btc when btc value goes down as we know that this month is the month of taking entry into the market so alot of investors are taking entry and some of them waiting for the btc get more dump according to their analysis. Own analysis is very important before taking entry into the market so i always prefer people to DYOR befoer taking entry into the market. In that way we can generate alot of profit. Holding Stable coin is also kinda good idea we shoulda hold some of them according to the DYOR technique

[summonerrk]

~~~.

I live in a country where the constant inflation rate is considered high even in good times. Therefore, all citizens save extra money that they can put aside from their salaries in foreign currency. Specifically in US dollars. The opinion has long been fixed that the right solution would be to link the prices of apartments, as well as cars to US dollars. That's why I like to save dollars, unlike Stable coins, it can't be taken away from me at one moment.
After all, everyone knows that any stable coins are centralized, and they can all depreciate at any time, as the author of the topic described. Therefore, it is better to have bills in your pocket than stable coins on the balance. Let the latter be instantly resold into bitcoin.

In general, this is the value of the cash dollar "in your pocket" - it is absolutely liquid, there is a constant demand for it, it is easy to manage. Yes, there are problems from the series of "how do I get 10 million dollars across the border" - but something tells me that this problem does not concern us much
As I've already written - neither bank nor stablecoin is an ideal solution, for the very reason that the bank/exchange/stablecoin issuing company can restrict access to them, the legal owner, for many reasons. That's why I always recommend diversifying savings and storage mechanisms

At different times, when the economic situation changes, the most profitable way to hold assets also changes.

For example, in the worst times, people buy gold - the so-called Safe Haven Currency, also cash, usually a currency like the US dollar. In good times, you can safely increase the share in your risky assets, such as cryptocurrencies and stablecoins.

Buy Bitcoin to sell it more expensive later, and stable coins so that if the price of cryptocurrency goes down, you can buy cheap bitcoin. To the very least, I buy campaign shares, because they are affected by force majeure, the environmental situation, and the like. Unlike them, I am sure that bitcoin will always rise in price.

[mindrust]

I know banks. I know how shitty they are and how they can go bankrupt. They are protected by so called “law” and yet they scam people every day. Still… I don’t know stable coins that much. I don’t know who (really) is issuing them, if they are backed by anything, what will happen to hem if the issuer exchange goes down etc…

When I compare stable coins to the FIAT in a bank account, I choose banks tbh. That doesn’t necessarily mean that stable coins have no use. They do. But I don’t trust them with my life savings.

[dothebeats]

I know banks. I know how shitty they are and how they can go bankrupt. They are protected by so called “law” and yet they scam people every day. Still… I don’t know stable coins that much. I don’t know who (really) is issuing them, if they are backed by anything, what will happen to hem if the issuer exchange goes down etc…

When I compare stable coins to the FIAT in a bank account, I choose banks tbh. That doesn’t necessarily mean that stable coins have no use. They do. But I don’t trust them with my life savings.

Right? Both are not so good in a way for me. I have had issues with the bank ever since some of the money in my savings account was randomly transferred by someone without my knowledge and when I asked the bank regarding this they couldn't provide me with any help or assistance. These days there have been a lot of issues regarding a lot of banks in my country as well, may it be from people losing money on their accounts or banks shutting down due to bankruptcy. However, as for stablecoins, most of them are not registered or regulated by any counrty so if something happens you cannot file any legal complaint or sue them since they are not technically a part of any legal system or jurisdiction, so there is that risk to consider. Hence, I am with you on your choice, not because bank is the best option and I wholely trust it, it's just that between the two bank holds the smaller risks.

[armanda90]

I know banks. I know how shitty they are and how they can go bankrupt. They are protected by so called “law” and yet they scam people every day. Still… I don’t know stable coins that much. I don’t know who (really) is issuing them, if they are backed by anything, what will happen to hem if the issuer exchange goes down etc…

When I compare stable coins to the FIAT in a bank account, I choose banks tbh. That doesn’t necessarily mean that stable coins have no use. They do. But I don’t trust them with my life savings.

Actually Bank is not secure and recommended place for saving money, in my country many cases happening with Bank's costumer after losing their money and investigate stole by Bank employees but we can get refund back.  What happen if Bank faced bankrupt and there are not chance to get back our money. But for choosing between stable assets in coin or having in the Bank seems better in stable coins, we have own controlling regarding with stable coins holding like USDT with ETH network. Bank can't protect or refund our money when they our account got hack and their answer is our fault, the same answer and not responsibility yet when Bank get bankrupt or some Bank employees are scammer and forget with hour much our saving there. I don't know what regulation in other country when Bank's member loss their saving will get protect and Bank refund or money? in my country is not yet.

[DrBeer]

.....

At different times, when the economic situation changes, the most profitable way to hold assets also changes.

For example, in the worst times, people buy gold - the so-called Safe Haven Currency, also cash, usually a currency like the US dollar. In good times, you can safely increase the share in your risky assets, such as cryptocurrencies and stablecoins.

Buy Bitcoin to sell it more expensive later, and stable coins so that if the price of cryptocurrency goes down, you can buy cheap bitcoin. To the very least, I buy campaign shares, because they are affected by force majeure, the environmental situation, and the like. Unlike them, I am sure that bitcoin will always rise in price.
[/quote]

You are absolutely right ! The only nuance - the author of the topic has a specific question, with a specific choice, and it seems for today's situation That's why, I negatively evaluated both options, based on the current real situation on the market today. Well and plus your concept is aimed at EARNING and capital increase, and not reduced to an attempt to decide how best to store funds in one of the two not the best options
Profit to you !