Bitcoin stable coin frozen value

[emiliamuller6710]

So for example I have 1BTC rather than going for centralized USDT what options I have to swap it for a stable coin that won't lose value and is not centralized but decentralised like BTC. Or we are always stuck to value fluctuations in decentralised crypto.

[OmegaStarScream]

So for example I have 1BTC rather than going for centralized USDT what options I have to swap it for a stable coin that won't lose value and is not centralized but decentralised like BTC. Or we are always stuck to value fluctuations in decentralised crypto.

DAI is the most popular option I can think of but then, you have multiple factors to take into consideration. Is the chain you're using that coin even decentralized? Is the exchange you're trading that coin on decentralized?

[Charles-Tim]

DAI is the most popular option I can think of but then, you have multiple factors to take into consideration. Is the chain you're using that coin even decentralized? Is the exchange you're trading that coin on decentralized?

Yes, according to what I have known about the coin, it is one of the decentralized stable coins, but the problem the coin has is that instead of it to be pegged with United States dollar, it also depends on other coins, especially USDC. If USDC depeg today, DAI will also follow and depeg because it is backed by USDC.

It will be good to read this: Warning! 16 Blockchains can freeze your coins!

[asriloni]

So for example I have 1BTC rather than going for centralized USDT what options I have to swap it for a stable coin that won't lose value and is not centralized but decentralised like BTC. Or we are always stuck to value fluctuations in decentralised crypto.

No option for you to swap your BTC to the decentralized stable caused by decentralized stable coin was never exist. People called DAI, but the fact that it's backed by multiple asset such as wrapped BTC, ETH, and etc. If you keep being stubborn to follow your vision to always use decentralized coin, then you will always be trapped by the fluctuation.

Any stable coin is obviously being backed and regulated by the centralized entities. So you have no choice other than use USDC/USDT.

[Findingnemo]

So for example I have 1BTC rather than going for centralized USDT what options I have to swap it for a stable coin that won't lose value and is not centralized but decentralised like BTC. Or we are always stuck to value fluctuations in decentralised crypto.

Just bit of an off topic reply, do you consider the value of stable coin to be reallt stable? I mean just take USDT for example and check the price on different exchange then you will realize that 1usdt is never equal to 1USD, it always a bit higher or lower and always keep fluctuating and the same goes for any stable coin too. So if you want the value of the coin to be stable then there is no choice because even the fiat currency of all around the world keep fluctuating.

[JeromeTash]

Or we are always stuck to value fluctuations in decentralised crypto.

It was always a thing in the past, by the way. Bitcoin was the base currency for most exchange pairs before arrival of stablecoins and the coins prices were in sats. The upside was that as the Bitcoin prices kept increasing, so did the value of your sats in an exchange.

So if you are so much into decentralization or trying to avoid those stablecoins, then you will have to accept the Bitcoin volatility or price fluctuations.

[dzungmobile]

It will be good to read this: Warning! 16 Blockchains can freeze your coins!

With blossom of altcoin blockchains and stablecoins deployed on new blockchains, the list will become longer and longer with time. If want something generalized, it's like stablecoins can be frozen in your non-custodial wallets, especially if they're centralized stablecoins. It's because centralized stablecoins have companies behind that have to be ordered by government to freeze or seize funds from criminals, hackers or even any reasons.

Can stablecoins be frozen by issuers?

[hugeblack]

DAI is the most stable and readily available option, offering ample liquidity and trading pairs across many CEX/DEX platforms. However, Liquity USD (LUSD)^[1] can be considered a viable alternative.

If you intend to hold stablecoins for an extended period, it's beter to invest in gold or silver, as they are generally considered safer than stablecoins and tend to appreciate in value.


[1] https://coinmarketcap.com/currencies/liquity-usd/

[allthebitandbobs]

So for example I have 1BTC rather than going for centralized USDT what options I have to swap it for a stable coin that won't lose value and is not centralized but decentralised like BTC. Or we are always stuck to value fluctuations in decentralised crypto.

I remember that there was a name contest in service board which was for a decentralized stablecoin but not sure that project was kicked off or not. In my opinion as well, there is a big need of decentralized stable coin which cannot be seized by any government like how USA government did with some crypto related services. I remember that stablecoin was planned with initial airdrop to bitcoin holders and also with POS feature to keep attracting some investors but unfortunately I have not heard anything on that later on.

Launching and then establishing is too difficult for any altcoin unless otherwise you already have enough funds to back up. Moreover, keep pegging of a stablecoin must be real challenge hence we are not having any truly decentralized coin.

DAI got voting feature hence devs themselves calling decentralized coins because the initial supply is still from a single entity and calling themselves decentralized, too funny, right?

[passwordnow]

I guess that there's no way to retain the value which is what you like to do. Bitcoin is volatile and the stable coins, DAI and the others have their pegged value through the dollars. So, it's not about the stable coin that you're worried with but the volatility of Bitcoin upon converting that into stable coin which has no way in avoiding that. But it's only minimal when you do that and likely the commissions or trading fees that you'll have to pay which aren't really that much.

[Juse14]

DAI is the most stable and readily available option, offering ample liquidity and trading pairs across many CEX/DEX platforms. However, Liquity USD (LUSD)^[1] can be considered a viable alternative.

If you intend to hold stablecoins for an extended period, it's beter to invest in gold or silver, as they are generally considered safer than stablecoins and tend to appreciate in value.


[1] https://coinmarketcap.com/currencies/liquity-usd/

DAI is a great choice for a decentralized stablecoin, and by far the best in its class.

Right now, gold and silver are at high prices, so isn't that risky, considering that silver is currently experiencing a surge in the mineral market. Will that be a problem? Or should we wait for silver to correct first to secure our money for a more secure value?

[OmegaStarScream]

Right now, gold and silver are at high prices, so isn't that risky, considering that silver is currently experiencing a surge in the mineral market. Will that be a problem? Or should we wait for silver to correct first to secure our money for a more secure value?

It might be better to wait for a price correction but then, if the plan is to hold for a few years, it probably doesn't really matter. Besides, you can never be sure that a correction will happen as opposed to it going up further.

[noorman0]

You don't really have a choice; all stablecoins are pegged to real-world assets held in centralized vaults. There's always the threat of regulation taking action, even if the issuer is transparent about regularly reporting reserves. Audit only serves to ensure there are no vulnerabilities in the contract code. At this point, you have to trust their evaluation results.

[TastyChillySauce00]

DAI is so far the closest to decentralized stablecoin but the founder behind it is trying to sunset it and replace it with USDS a more inferior stablecoin decentralization wise.

I think at this point stablecoin is just synonym of centralized crypto.
After all, when you back up your stablecoin with t-bill and other asset, you gotta comply with the KYC otherwise your entire business is at risk.

[Antona]

You're asking for the impossible combo right now. Decentralized systems are bad at maintaining a fixed price peg without some trusted input, projects are trying (e.g Frax's AMO) but it's unproven at scale your 1 BTC is the hardest most decentralized money, Any stablecoin will be a compromise, maybe split a small portion into a decentralized stable if you need a fiat proxy for short term needs