Stable coin or having USD in bank

[Smack That Ace]

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.

As I have witnessed, there are cases when we deposit money in the bank and lose it and still get compensation, but there are also cases when we don't get compensation and ignore. As I see it, there are many factors involved, and resolving it depends on each case and takes a lot of time. It should not be said that all banks are irresponsible. If you deposit your money in a reputable bank such as a central bank that is directly regulated by the government, that is unlikely to happen.

But there's no denying that banking isn't as secure as we think it is. There are still many vulnerabilities that can be exploited. It can be said that nothing is perfect and that is why diversifying assets and diversifying where assets are stored is necessary.

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[crwth]

I'm curious as to what you think you can control if you have money in the bank. Because I think you can completely control it with the right stuff and important things that you have to do.

Things you can control

• Withdraw/Deposit money in the bank
• Invest it in assets or bonds in the bank
• Your account and where it will go

You cannot control

• The market (Whether it's stable coin or any other market
• What the bank does with your money

You will still have the money in your account but technically they would invest it in something and it's numbers on your account etc. As long as your bank is reputable, you have nothing to worry about and if it is insured, etc., you wouldn't have a problem with it.

I think the post essence makes it seem that it is a deciding factor to have that "control" but I don't think it is.

[dansus021]

I currently prefer Stable Coin since I don't have a USD Bank account and sometimes saving using real fiat come with high cost including bank fee, forex fee spread, and many more. Maye countries who have an inflation rate would prefer the same as I do The cheapest is a thorough Paypal and wise but both of them still have the high fee rather than Stablecoin but dont save much in stablecoin too since so much is going on including war with the SEC that happen with BUSD or falling peg like UST.

So saving in bitcoin maybe is the best option for non fiat

[slapper]

I'm curious as to what you think you can control if you have money in the bank. Because I think you can completely control it with the right stuff and important things that you have to do.

Things you can control

• Withdraw/Deposit money in the bank
• Invest it in assets or bonds in the bank
• Your account and where it will go

You cannot control

• The market (Whether it's stable coin or any other market
• What the bank does with your money

You will still have the money in your account but technically they would invest it in something and it's numbers on your account etc. As long as your bank is reputable, you have nothing to worry about and if it is insured, etc., you wouldn't have a problem with it.

I think the post essence makes it seem that it is a deciding factor to have that "control" but I don't think it is.

If your bank is "reputable," do you think you have complete control over your funds? Even the most renowned institutions can make serious mistakes.

Fractional reserve banking is a sophisticated Ponzi scheme used by banks. Each monetary deposit is held in reserve at a fraction. The rest? Market-injected or loaned. You stated numbers, but it's also a tightrope over an abyss.

With Bitcoin and decentralized systems on the rise, banks' illusion of control is fading. DeFi gives people direct asset control without middlemen. Your control comprehension is simple but lacks depth and fails to see economic trends.

[Tony116]

I currently prefer Stable Coin since I don't have a USD Bank account and sometimes saving using real fiat come with high cost including bank fee, forex fee spread, and many more. Maye countries who have an inflation rate would prefer the same as I do The cheapest is a thorough Paypal and wise but both of them still have the high fee rather than Stablecoin but dont save much in stablecoin too since so much is going on including war with the SEC that happen with BUSD or falling peg like UST.

So saving in bitcoin maybe is the best option for non fiat

Are you sure that with such high volatility, bitcoin is suitable as a savings? Savings are the money we will use in case of an emergency, in the near future. What if bitcoins drop 10% or 20% and you have the guts to use them then? Bitcoin is only suitable as an investment, it is not suitable as a savings or store of value.

Talking about stablecoins and USD, obviously USD is much safer and you will not have too much difficulty if you want to open a savings account in USD. USD is the global reserve currency and there is no bank that does not use it.

[arabspaceship123]

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.

If UST wasn't backed by real assets it had to fail but Tether DAI USDC aren't failing. They're popular choices. They don't seem to be in trouble.

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.

Stable coins are backed by dollar reserves but I trusting them's hard. Look at what happened to Terra. If your bank goes bankrupt you're getting money back from the government if you put money in Terra you've lost it.

[Blowon]

having USD in a bank is more secure. I often hear some rumors about famous stable coins like USDT, they have some cases but I haven't confirmed the truth. and some people told me that USDT is not fully backed by USD. That's only a small part, which makes me afraid to really store assets in the form of stable coins for a long time.

[DrBeer]

having USD in a bank is more secure. I often hear some rumors about famous stable coins like USDT, they have some cases but I haven't confirmed the truth. and some people told me that USDT is not fully backed by USD. That's only a small part, which makes me afraid to really store assets in the form of stable coins for a long time.

Collateral is a fairly specific measure. I can say one thing: ALL violate this security.
Stablecoins - yes, the collateral scheme is very specific and not very transparent. Fiat currencies ?So they are even less secured in terms of real assets . The same dollar - although I consider it the most attractive currency in international trade, but its real asset backing is clearly lame. Its stability is secured not by assets, but by its issuer and the confidence of the world economy.

[kojektea]

not sure about stable coins about some of the issues there. Even Binance officially announced the delisting of BUSD which is very strange. I think it's a good idea to save enough money in the bank because it provides more security. I will save in stable coins when in investing not for the long term. USD in the bank has a lot of data and definite backups, and I believe people still trust banks more when it comes to safekeeping.

[letteredhub]

If the conversion rate is high, USD in the bank is actually better. But the choice of banks in my country that allow to deposit foreign currency is very few and I think the process is more complicated than getting local currency. I personally don't want to pursue only one characteristic benefit such as complete control while ignoring other potential disadvantages. Suppose I have to incur additional exchange fees to local fiat because, using foreign currency for spending isn't permitted in my country.

To avoid incurring excessive fees through conversion into USD in a bank deposit particularly for those in countries where the dollar can't be used or accepted locally for purchasing of goods and services the best alternative should be to hold it in stable coins retaining value for your money. All you will doing is to be abreast with the market  to be in touch with current issues about such stable coin.

[Razmirraz]

It depends on how long the money is kept and where the money is used. Talking about a place to save money that is resistant to inflation, there are several media to choose from, depending on the habits of each individual in saving their money. If for alternative storage I prefer USDT or stable coins, I can use them whenever needed, it's not too complicated when converting it to fiat and it doesn't take long to exchange it.
USDT is the most profitable alternative for me (at least as long as I keep USDT there are no problems). When it comes to storing money in the long term, I prefer Bitcoin because it has been proven to be resistant to market shocks.

[DrBeer]

The only plus in favor of storing in a stablecoin may be today's situation, when over the past 2 years, the dollar, like most other currencies, has lost its value due to inflation. And only if you had savings in some cryptocurrency, which lost even more, but you managed to convert it into a stablecoin. Which is backed by... by a dollar that has fallen in value, but less than bitcoin, for example.)
In short, no matter how you look at it, diversification will be better and safer, in terms of financial risks

[summonerrk]

.....


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.

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 !

I understand, and of course I have a specific answer to this question: the algorithm is as follows: you need to look at the bitcoin chart, if the price is high now, then you need to fix the profit and wait for a correction or a price drop. So you need to transfer some of the bitcoins to stablecoins. Not cash or bank dollars. If the price of bitcoin is low, but you need to buy it, and in no case store your savings in stablecoins. Right now, in my opinion, the price of bitcoin is neither low nor high. The situation is not certain, which means it is possible to partially purchase stablecoins (for example, USDT), and partially dollars. Any - in cash or on an electronic account.
And as you probably understood - I do not approve of "storing and saving" money. I believe that they should "work" in any situation.

[DrBeer]

.....
I understand, and of course I have a specific answer to this question: the algorithm is as follows: you need to look at the bitcoin chart, if the price is high now, then you need to fix the profit and wait for a correction or a price drop. So you need to transfer some of the bitcoins to stablecoins. Not cash or bank dollars. If the price of bitcoin is low, but you need to buy it, and in no case store your savings in stablecoins. Right now, in my opinion, the price of bitcoin is neither low nor high. The situation is not certain, which means it is possible to partially purchase stablecoins (for example, USDT), and partially dollars. Any - in cash or on an electronic account.
And as you probably understood - I do not approve of "storing and saving" money. I believe that they should "work" in any situation.

Excellent clarification, which I fully support. The only thing I'm pushing:
The first part is about analyzing the situation in the crypto market. Here we have to be honest - not everyone can do it, and not everyone makes the right assessment, does not monitor the situation, and cannot make the right conclusion, and therefore the right actions. Therefore - the advice is GOOD, but not everyone will be able to use it.
Second - what you described, in some ways the same diversification. And it is right !
Third - the last point, I fully support. When money is lying "dead weight", it...spoils

[dansus021]

I currently prefer Stable Coin since I don't have a USD Bank account and sometimes saving using real fiat come with high cost including bank fee, forex fee spread, and many more. Maye countries who have an inflation rate would prefer the same as I do The cheapest is a thorough Paypal and wise but both of them still have the high fee rather than Stablecoin but dont save much in stablecoin too since so much is going on including war with the SEC that happen with BUSD or falling peg like UST.

So saving in bitcoin maybe is the best option for non fiat

Are you sure that with such high volatility, bitcoin is suitable as a savings? Savings are the money we will use in case of an emergency, in the near future. What if bitcoins drop 10% or 20% and you have the guts to use them then? Bitcoin is only suitable as an investment, it is not suitable as a savings or store of value.

Im sorry bro but can you read again I write it the best option for non fiat and Im still prefer stablecoin over it for saving. Tho is not just me who saying it "Scarcity: Bitcoin has a finite supply of 21 million coins, which makes it resistant to the arbitrary inflation that ails traditional currencies. This limited supply gives it a scarcity value, making it a valuable asset to hold and store wealth" https://bitcoinmagazine.com/guides/store-of-value

[summonerrk]

.....
I understand, and of course I have a specific answer to this question: the algorithm is as follows: you need to look at the bitcoin chart, if the price is high now, then you need to fix the profit and wait for a correction or a price drop. So you need to transfer some of the bitcoins to stablecoins. Not cash or bank dollars. If the price of bitcoin is low, but you need to buy it, and in no case store your savings in stablecoins. Right now, in my opinion, the price of bitcoin is neither low nor high. The situation is not certain, which means it is possible to partially purchase stablecoins (for example, USDT), and partially dollars. Any - in cash or on an electronic account.
And as you probably understood - I do not approve of "storing and saving" money. I believe that they should "work" in any situation.

Excellent clarification, which I fully support. The only thing I'm pushing:
The first part is about analyzing the situation in the crypto market. Here we have to be honest - not everyone can do it, and not everyone makes the right assessment, does not monitor the situation, and cannot make the right conclusion, and therefore the right actions. Therefore - the advice is GOOD, but not everyone will be able to use it.
Second - what you described, in some ways the same diversification. And it is right !
Third - the last point, I fully support. When money is lying "dead weight", it...spoils

Not everyone believes in technical analysis, some believe, but they think that it is very difficult. I think that from all the technical analysis, only support and resistance levels, as well as trend support lines, work. Orientation in the tracks on them does not give a great chance of success, but if you do a lot of small transactions, then a strategy with such a technical analysis will give a result. And it is better to do this during the time when the price is locked in the corridor, as it is now.
Therefore, if we return to the question of the author of the topic, now it is simply necessary to have part of the funds in the USDT.
By the way, the forum is full of smart guys who sometimes analyze the price of bitcoin and post their results. This is convenient for novices.

[tygeade]

If the conversion rate is high, USD in the bank is actually better. But the choice of banks in my country that allow to deposit foreign currency is very few and I think the process is more complicated than getting local currency. I personally don't want to pursue only one characteristic benefit such as complete control while ignoring other potential disadvantages. Suppose I have to incur additional exchange fees to local fiat because, using foreign currency for spending isn't permitted in my country.

To avoid incurring excessive fees through conversion into USD in a bank deposit particularly for those in countries where the dollar can't be used or accepted locally for purchasing of goods and services the best alternative should be to hold it in stable coins retaining value for your money. All you will doing is to be abreast with the market  to be in touch with current issues about such stable coin.

That would still work for bitcoin as well. If you keep it in bitcoin then you could end up making a big profit when it goes up as well. If it drops, all you would lose would be 10% or so because that's how much it usually drops at most, we are at 26k or so levels, a 2.6k fall would make it go under 24k, I do not think that it will get there, which means that holding at bitcoin would be better and it could reach above 30k and if it reaches more than that and does a big bull run that is even better.

That's why it is quite important to reach those levels, we should be careful about it. I get that it is not going to be that easy, but we need to be careful for sure. It is definitely something that we could do eventually.

[inthelongrun]

I'm curious as to what you think you can control if you have money in the bank. Because I think you can completely control it with the right stuff and important things that you have to do.

Things you can control

• Withdraw/Deposit money in the bank
• Invest it in assets or bonds in the bank
• Your account and where it will go

You cannot control

• The market (Whether it's stable coin or any other market
• What the bank does with your money

You will still have the money in your account but technically they would invest it in something and it's numbers on your account etc. As long as your bank is reputable, you have nothing to worry about and if it is insured, etc., you wouldn't have a problem with it.

I think the post essence makes it seem that it is a deciding factor to have that "control" but I don't think it is.

If your bank is "reputable," do you think you have complete control over your funds? Even the most renowned institutions can make serious mistakes.

Fractional reserve banking is a sophisticated Ponzi scheme used by banks. Each monetary deposit is held in reserve at a fraction. The rest? Market-injected or loaned. You stated numbers, but it's also a tightrope over an abyss.

With Bitcoin and decentralized systems on the rise, banks' illusion of control is fading. DeFi gives people direct asset control without middlemen. Your control comprehension is simple but lacks depth and fails to see economic trends.

It is good that bitcoin and decentralization are making new economic trends. But this way, banks are also trying to innovate themselves in order to continue attracting people. But of course, I still prefer a decentralized system rather than the centralized banks that are using our own money to grow their businesses. 

Here in my country, reputable banks or not, as long as the bank is insured by our national standards then you will have no problems with your deposits unless you are wanted by the state, and your account will be frozen.

[DrBeer]

.....
I understand, and of course I have a specific answer to this question: the algorithm is as follows: you need to look at the bitcoin chart, if the price is high now, then you need to fix the profit and wait for a correction or a price drop. So you need to transfer some of the bitcoins to stablecoins. Not cash or bank dollars. If the price of bitcoin is low, but you need to buy it, and in no case store your savings in stablecoins. Right now, in my opinion, the price of bitcoin is neither low nor high. The situation is not certain, which means it is possible to partially purchase stablecoins (for example, USDT), and partially dollars. Any - in cash or on an electronic account.
And as you probably understood - I do not approve of "storing and saving" money. I believe that they should "work" in any situation.

Excellent clarification, which I fully support. The only thing I'm pushing:
The first part is about analyzing the situation in the crypto market. Here we have to be honest - not everyone can do it, and not everyone makes the right assessment, does not monitor the situation, and cannot make the right conclusion, and therefore the right actions. Therefore - the advice is GOOD, but not everyone will be able to use it.
Second - what you described, in some ways the same diversification. And it is right !
Third - the last point, I fully support. When money is lying "dead weight", it...spoils

Not everyone believes in technical analysis, some believe, but they think that it is very difficult. I think that from all the technical analysis, only support and resistance levels, as well as trend support lines, work. Orientation in the tracks on them does not give a great chance of success, but if you do a lot of small transactions, then a strategy with such a technical analysis will give a result. And it is better to do this during the time when the price is locked in the corridor, as it is now.
Therefore, if we return to the question of the author of the topic, now it is simply necessary to have part of the funds in the USDT.
By the way, the forum is full of smart guys who sometimes analyze the price of bitcoin and post their results. This is convenient for novices.

That's all understandable, and I agree. Except for the fact that you should make a decision based on other people's forecasts
Let's take the situation today - some people say "it will rise in price 10 times", others say "it will fall below 25,000, and there are no prospects". Whose opinion to choose ? What is "more pleasant for the soul" ? Here you have to make your own decisions, more precisely, to analyze and draw conclusions, to make balanced decisions and moves. For example, I never give advice from the field of "buy bitcoin/sell bitcoin" - it's someone else's money, and my mistake or missed nuances can ruin someone ... So once again - any analytics should be considered as information that has some probability of happening. But it is absolutely impossible to take such information as a direct command to action

[Jating]

If the conversion rate is high, USD in the bank is actually better. But the choice of banks in my country that allow to deposit foreign currency is very few and I think the process is more complicated than getting local currency. I personally don't want to pursue only one characteristic benefit such as complete control while ignoring other potential disadvantages. Suppose I have to incur additional exchange fees to local fiat because, using foreign currency for spending isn't permitted in my country.

To avoid incurring excessive fees through conversion into USD in a bank deposit particularly for those in countries where the dollar can't be used or accepted locally for purchasing of goods and services the best alternative should be to hold it in stable coins retaining value for your money. All you will doing is to be abreast with the market  to be in touch with current issues about such stable coin.

That would still work for bitcoin as well. If you keep it in bitcoin then you could end up making a big profit when it goes up as well. If it drops, all you would lose would be 10% or so because that's how much it usually drops at most, we are at 26k or so levels, a 2.6k fall would make it go under 24k, I do not think that it will get there, which means that holding at bitcoin would be better and it could reach above 30k and if it reaches more than that and does a big bull run that is even better.

That's why it is quite important to reach those levels, we should be careful about it. I get that it is not going to be that easy, but we need to be careful for sure. It is definitely something that we could do eventually.

But that could be just paper lose? I mean if you are not selling it and just seeing your portfolio going down, then I guess if it still good in my opinion as everything is in paper.

But the problem is that when you sell your bitcoin and then hedge it to like stable coin or withdraw it totally in USD and save it to the bank. With that, obviously it's going to be a lose for you specially if the price of bitcoin goes up in the next coming years as we all know that the catalyst for a bull run is going to happen next year (block halving). So it's not best to put it to stable coin or even USD, in my opinion.