Stable coin fiat or stable coin gold

[Emitdama]

I understand preferring USDT over your own national currency, but at that point you are not preferring USDT, you are just preferring USD over your own fiat. That means it is not the stablecoin that you want, it's dollars that you want and you found USDT as an easy way to hold that.

I would highly suggest not doing that, it is not a good idea and you are not going to get the best out of crypto if you keep your money in USDT for long term. If you want USD, get normal USD, if you want crypto, get crypto. Stablecoins are very dangerous to hold for too long.

This makes sense, especially the part that many people use USDT mainly because it give easy access to dollar value without needing a bank in actual USD. But for a lot of users, especially outside the US, holding real dollars is not always simple. Some people can't easily open a dollar account, buy cash USD or move money internationally, so USDT becomes the practical option even if the real goal is just protecting value against a weak local currency.

I agree though that keeping too much in stablecoins for a very long time has its own risk. You still depend on the issuer, reserves and regulations, so it's not the same as holding actual cash or holding bitcoin where you control the asset yourself.

This is basically what people are doing, specially from the countries that are having weak currencies that are losing value against dollar, which is very tough to do you need to be a very horrible country considering how dollar is also losing value. But they do get USDT, because they do not have access to real dollars, I mean people would prefer to have real dollars in their bank accounts or in their hands, but if they can't, they just get USDT and that means they are sort of protected from their own fiat devaluation.

Not everyone though, this is a small part of the public that uses USDT, majority of it is just in exchanges for trading and nothing more, from leverage to spot to just holding for long term until it bottoms out, many use it in those exchanges.

[o48o]

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Personally, in a bear market I’d prefer fiat stables for flexibility and lower volatility. Gold tokens are more of a directional bet on gold, not pure stability.

Pure stability against what exactly? Dollar value? 1 Dollar is always valued as 1 dollar, even when everyone knows it doesn't increase in value. Fiat money is actually designed to lose value slowly in time because of inflation and so that people would spend it, as hoarding it doesn't help the economy. But that's beside my point... Fiat moneys differ, and euro is doing way better then USD for example.

Bitcoin is stable as well, as one bitcoin is always going to be worth one bitcoin. Gold on the other hand has historically been an excellent safe haven, especially in times of crisis, so i am not sure why you think that's a bad choice in a bear market.

[free-bit.co.in]

You are right that XAUT is backed by physical gold, bit know that it is also a stable coin, including others like PAXG. Another example of stable coins are the wBTC which is backed by bitcoin.

The reason they are said to be stable coins is because their prices is pegged to another currency, so as the currency is increasing or reducing in prices, they are also increase and reducing in prices. Which means they have stable prices with the currency they are backed with.

As I understand it, stablecoin are a type of crypto designed to maintain a stable price, and most of them are pegged to fiat. Meanwhile, other cryptocurrency asset that are pegged to physical assets such as gold, silver, or oil are known as tokenized asset (RWA).

Stablecoin and tokenized asset share many similarities, but they are two different concept with different purposes. You cannot convert your bitcoin to XAUT and say you are holding a stablecoin to hedge against market volatility. XAUT could also be dumped if the physical gold market experiences a selloff.

[Findingnemo]

I have USDC and USDT in hundreds, which is only for trading purposes, but one who thinks that they are waiting for the bear market to over which I expect not to happen in the near future, should not hold crypto that can potentially be frozen. Fiat is better unless the fiat of your country is not that stable with the inflation rate.

Stablecoin gold, I never got one in my portfolio. I will choose the real physical gold instead of the virtual pegged ones.

[Abiky]

I have USDC and USDT in hundreds, which is only for trading purposes, but one who thinks that they are waiting for the bear market to over which I expect not to happen in the near future, should not hold crypto that can potentially be frozen. Fiat is better unless the fiat of your country is not that stable with the inflation rate.

Stablecoin gold, I never got one in my portfolio. I will choose the real physical gold instead of the virtual pegged ones.

Stablecoins' main purpose is to protect yourself against short-term volatility. They're not something you would "park" your money into the long-term. I'd say stablecoins are much more useful for people living in developing countries because their national currencies are often worthless (due to high inflation). USD-backed stablecoins are often considered the ideal choice for such people.

I understand centralized stablecoins can be frozen at will, but there's always the choice of a decentralized alternative for true censorship-resistance. USDS (formerly DAI) is one of those alternatives. As for Gold-backed tokens (a form of Real World Asset), I'd say they aren't really worth the risk. They're just like "paper Gold". You'll get "ownership" of a physical representation of Gold. Not Gold itself. Same goes for Silver-backed tokens. Depending on your needs, will be the kind of token to use. You're better off with real, physical Gold and Fiat (major currencies like the EUR, USD, JPY, and GBP). The choice is yours.

[Iranus]

Stablecoins' main purpose is to protect yourself against short-term volatility. They're not something you would "park" your money into the long-term. I'd say stablecoins are much more useful for people living in developing countries because their national currencies are often worthless (due to high inflation). USD-backed stablecoins are often considered the ideal choice for such people.

I understand centralized stablecoins can be frozen at will, but there's always the choice of a decentralized alternative for true censorship-resistance. USDS (formerly DAI) is one of those alternatives. As for Gold-backed tokens (a form of Real World Asset), I'd say they aren't really worth the risk. They're just like "paper Gold". You'll get "ownership" of a physical representation of Gold. Not Gold itself. Same goes for Silver-backed tokens. Depending on your needs, will be the kind of token to use. You're better off with real, physical Gold and Fiat (major currencies like the EUR, USD, JPY, and GBP). The choice is yours.

I acknowledge that investing in tokenized asset like XAUT, PAXG, and KAG is somewhat riskier than holding them directly in physical form.

However, I think that if you feel safe holding stablecoin and altcoin. Why should you be afraid to invest in tokenized asset? In essence, they are similar to centralized altcoins. They are even safer than many altcoin because they will not easily disappear or rug pull.

If you only invest in Bitcoin and store it in a noncustodial wallet. You should stay away from tokenized assets, but if you have no problem with altcoin, investing in tokenized assets is not a serious issue.

[Dunamisx]

Once it is crypto then it is acceptable but anything that changes from being a cryptocurrency is not acceptable at all, we all know the relevance of cryptocurrency in today's economy and why we should always consider it for many reasons, we can't afford to lose despite we are investing and also holding our asset for a longer all because of the incidence of inflation, as this is one of the reward we often get from stablecoins or fiat except we are directly dealing with cryptocurrency that are volatile.

[Abiky]

I acknowledge that investing in tokenized asset like XAUT, PAXG, and KAG is somewhat riskier than holding them directly in physical form.

However, I think that if you feel safe holding stablecoin and altcoin. Why should you be afraid to invest in tokenized asset? In essence, they are similar to centralized altcoins. They are even safer than many altcoin because they will not easily disappear or rug pull.

If you only invest in Bitcoin and store it in a noncustodial wallet. You should stay away from tokenized assets, but if you have no problem with altcoin, investing in tokenized assets is not a serious issue.

Tokenized assets can be "safe" if they strictly adhere to regulations. Like performing audits at regular intervals, and providing proof of their reserves. Personally, I wouldn't trust anything related to Tether due to its shady past. But Paxos is a much better alternative. Regulatory-compliant, and very "trustworthy". There are rumors that BlackRock will join the RWAs craze, so it's likely we'll see Silver and Gold ETFs + futures launched on the Blockchain soon.

Some people prefer holding Gold physically, while others prefer the convenience of trading it digitally. It's all a matter of choice. At least, we have plenty of options to choose from.

[shinratensei_]

I acknowledge that investing in tokenized asset like XAUT, PAXG, and KAG is somewhat riskier than holding them directly in physical form.

However, I think that if you feel safe holding stablecoin and altcoin. Why should you be afraid to invest in tokenized asset? In essence, they are similar to centralized altcoins. They are even safer than many altcoin because they will not easily disappear or rug pull.

If you only invest in Bitcoin and store it in a noncustodial wallet. You should stay away from tokenized assets, but if you have no problem with altcoin, investing in tokenized assets is not a serious issue.

Tokenized assets can be "safe" if they strictly adhere to regulations. Like performing audits at regular intervals, and providing proof of their reserves. Personally, I wouldn't trust anything related to Tether due to its shady past. But Paxos is a much better alternative. Regulatory-compliant, and very "trustworthy". There are rumors that BlackRock will join the RWAs craze, so it's likely we'll see Silver and Gold ETFs + futures launched on the Blockchain soon.

Some people prefer holding Gold physically, while others prefer the convenience of trading it digitally. It's all a matter of choice. At least, we have plenty of options to choose from.

There are also disadvantages of holding physical gold beside the virtual ones which is storing it and the spread + fee imposed by merchant when selling.
I've never touched physical gold anymore after trading RWA because it's just that liquid. Although there is always risk like company collapse. Each have their own advantage and disadvantage I guess.

[Iranus]

There are also disadvantages of holding physical gold beside the virtual ones which is storing it and the spread + fee imposed by merchant when selling.
I've never touched physical gold anymore after trading RWA because it's just that liquid. Although there is always risk like company collapse. Each have their own advantage and disadvantage I guess.

If you only trade short term, virtual gold will be more convenient. But for long term investment, physical gold remains a more reliable option. Just like Bitcoin, you only truly own and have full control when you hold physical gold.

Each type of asset, whether tangible or digital, has its own advantages and disadvantages. Therefore, we need to make choices that are appropriate to our goals.

[Somto9Light]

Once it is crypto then it is acceptable but anything that changes from being a cryptocurrency is not acceptable at all, we all know the relevance of cryptocurrency in today's economy and why we should always consider it for many reasons, we can't afford to lose despite we are investing and also holding our asset for a longer all because of the incidence of inflation, as this is one of the reward we often get from stablecoins or fiat except we are directly dealing with cryptocurrency that are volatile.

Not all cryptocurrencies are worth considering at all, in fact some fiat currencies are 100 times better than some cryptocurrencies, especially these pump and dump projects. Yes, they’re still cryptocurrencies but they’re only good for nothing. So it’ll be wrong for you to say that once it is crypto, that it’s should be completely acceptable because not all cryptos are actually worth considering.

[TastyChillySauce00]

I have USDC and USDT in hundreds, which is only for trading purposes, but one who thinks that they are waiting for the bear market to over which I expect not to happen in the near future, should not hold crypto that can potentially be frozen. Fiat is better unless the fiat of your country is not that stable with the inflation rate.

Stablecoin gold, I never got one in my portfolio. I will choose the real physical gold instead of the virtual pegged ones.

Stablecoins' main purpose is to protect yourself against short-term volatility. They're not something you would "park" your money into the long-term. I'd say stablecoins are much more useful for people living in developing countries because their national currencies are often worthless (due to high inflation). USD-backed stablecoins are often considered the ideal choice for such people.

I understand centralized stablecoins can be frozen at will, but there's always the choice of a decentralized alternative for true censorship-resistance. USDS (formerly DAI) is one of those alternatives. As for Gold-backed tokens (a form of Real World Asset), I'd say they aren't really worth the risk. They're just like "paper Gold". You'll get "ownership" of a physical representation of Gold. Not Gold itself. Same goes for Silver-backed tokens. Depending on your needs, will be the kind of token to use. You're better off with real, physical Gold and Fiat (major currencies like the EUR, USD, JPY, and GBP). The choice is yours.

Although USDS haven't implemented blacklist yet, but their smart contract is upgradeable. Anyone concerned with being wrongly blacklisted despite not doing anything that offend the law better use DAI instead despite the soft sunset.
But I agree with you, USDS is far better than any stablecoin in the market and more suited for long term holding. Just make sure to keep on tab with their reserves to see whether the peg is healthy or not. The only disadvantage with USDS is low liquidity compared to other centralized stables.

[Abiky]

If you only trade short term, virtual gold will be more convenient. But for long term investment, physical gold remains a more reliable option. Just like Bitcoin, you only truly own and have full control when you hold physical gold.

Each type of asset, whether tangible or digital, has its own advantages and disadvantages. Therefore, we need to make choices that are appropriate to our goals.

Physical gold's main "selling point" is that it can be used offline. It does wonders during times of crisis. Tokenized Gold is just like Paper Gold. You get something that represents the value of real Gold. Not the Gold itself. When disaster strikes, tokenized Gold would be rendered useless. Especially if there's lack of Internet access or electricity. Stablecoins also carry the same level of risk. The only advantage of tokenized assets is that there are no storage costs. You can send/receive them quickly and cheaply.

Depending on your needs, would be the kind of asset to use. We'll see how adoption for tokenized Gold will turn out to be in the long term.

[M47AK16]

Stablecoins' main purpose is to protect yourself against short-term volatility. They're not something you would "park" your money into the long-term. I'd say stablecoins are much more useful for people living in developing countries because their national currencies are often worthless (due to high inflation). USD-backed stablecoins are often considered the ideal choice for such people.

I understand centralized stablecoins can be frozen at will, but there's always the choice of a decentralized alternative for true censorship-resistance. USDS (formerly DAI) is one of those alternatives. As for Gold-backed tokens (a form of Real World Asset), I'd say they aren't really worth the risk. They're just like "paper Gold". You'll get "ownership" of a physical representation of Gold. Not Gold itself. Same goes for Silver-backed tokens. Depending on your needs, will be the kind of token to use. You're better off with real, physical Gold and Fiat (major currencies like the EUR, USD, JPY, and GBP). The choice is yours.

Although USDS haven't implemented blacklist yet, but their smart contract is upgradeable. Anyone concerned with being wrongly blacklisted despite not doing anything that offend the law better use DAI instead despite the soft sunset.
But I agree with you, USDS is far better than any stablecoin in the market and more suited for long term holding. Just make sure to keep on tab with their reserves to see whether the peg is healthy or not. The only disadvantage with USDS is low liquidity compared to other centralized stables.

There is no "better" one, they are all the same shit for me and I will never imagine one of them being better than the other one, it will continue to be bad for me and won't change that anytime soon.

We should consider how this could be something that will take a while before we could make it work, but the reality is that we are not going to really see this being something that would be easy to handle, and we should require some sort of outside help, like go back to normal fiat, instead of anything stable in the crypto world.

[Localhostspeed]

There is no "better" one, they are all the same shit for me and I will never imagine one of them being better than the other one, it will continue to be bad for me and won't change that anytime soon.

We should consider how this could be something that will take a while before we could make it work, but the reality is that we are not going to really see this being something that would be easy to handle, and we should require some sort of outside help, like go back to normal fiat, instead of anything stable in the crypto world.

You can't get a hold of your investment forever and as far as listing is concern, you can't get coin pair with other coins except for stable coins and other fiat currency if a available in your region, you can't even get any coin pair with other coin except for the likes of Bitcoin and Ethereum that dominate the market. You will directly or directly use stable coins but it's not a most to hold them because of how they are centralized, it's better you keep them only when trading.

Dai that is now Usds remain one of the best stable coin and not because they can be hold but the damage that can happen to you when you hold usdt or usdc, you can't get that while holding Usds. You will have some peace of mind holding than when you hold usdt and heard that your wallet has been blacklisted. Just imagine that you hold coin because you are trying to avoid volatility only to be stop from moving the coin, the way stable coins look too centralized is very bad.

[justdimin]

If you only trade short term, virtual gold will be more convenient. But for long term investment, physical gold remains a more reliable option. Just like Bitcoin, you only truly own and have full control when you hold physical gold.

Each type of asset, whether tangible or digital, has its own advantages and disadvantages. Therefore, we need to make choices that are appropriate to our goals.

I would say safe more than convenient though. Because like he said, companies here in the online world are prone to collapses. But when it comes to these things where money is already involved, I will make sure first that everything is safe.

So if I already proved that they are truly legit, I wouldn't mind entrusting them with my money in exchange for the gold, even if the deal runs for a very long time. Bitcoin doesn't have a physical form to compare with gold but if you mean about ownership, Bitcoin can in fact be like what we are talking here. That is, if we use centralized services too or even when using a wallet that is a custodial one.

[Conqueror777]

They have the same risks because they are not actually fiat or gold. They are not the real fiat or gold price but pegged.

Some people  prefer to just hold stable coin like USDT, USDC for fiat or PAXG or XAUT for gold during bitcoin bear market, which one would you prefer?

The reason I asked this question is that I am holding stable coin gold this bear market and it is better than stable coin fiat.

Post your opinion.

I prefer USDT because I believe in Coinbase and it's ability to repay the coin. My second best preference is BUSD from binance.

[shinratensei_]

I prefer USDT because I believe in Coinbase and it's ability to repay the coin. My second best preference is BUSD from binance.

USDT have nothing to do with coinbase and if what you mean by it's ability to repay the coin is maintaining the reserve for peg, it's on Tether's responisibility to do that.
USDC is closest to being owned by Coinbase because Coinbase is part of the consortium although coinbase can help company issue custom stablecoin. Coinbase from what I know more focused on wrapped coins like CbBTC.

[TofuRute]

I prefer USDT because I believe in Coinbase and it's ability to repay the coin. My second best preference is BUSD from binance.

USDT have nothing to do with coinbase and if what you mean by it's ability to repay the coin is maintaining the reserve for peg, it's on Tether's responisibility to do that.
USDC is closest to being owned by Coinbase because Coinbase is part of the consortium although coinbase can help company issue custom stablecoin. Coinbase from what I know more focused on wrapped coins like CbBTC.

USDT is not related to Coinbase, it is issued by Tether Limited, so Tether is the one responsible for keeping the peg and managing the reserves. If you're thinking about Coinbase, the stablecoin more closely connected to it is USD Coin, since Coinbase works closely with Circle Internet Group. So when choosing a stablecoin, the most important thing is to know who issues it and whether you trust their reserves and transparency.

[batang_bitcoin]

If the purpose is to hold it stable, then stable coin fiat is the option. Because as for stable coins gold, they're not really stable. They're pegged with gold's value and that's why it depends on the purpose. Because if it's for holding the value, the stable coins in fiat is the best option. And if I like to invest into gold, then that's the thing that I'll choose because that serves its purpose and both of them are into that.

My second best preference is BUSD from binance.

Speaking of BUSD -> Binance says goodbye to BUSD, its stablecoin