Stablecoins are not stable.

[Kelward]

Stablecoins that are pegged to a fiat currency like USD remains pegged to $1 as long as it is in a stablecoin but if you trade your USDT stablecoin to USD fiat and wants to spend it that is when the USD inflation will affect it. I believe that the peg of 1 USDT and USDC to $1 is basically for accounting purposes, it is not as if USD for example loses it's value let's say by 5% that the stablecoins that are pegged to it authomatically loses 5% in value. They will still be pegged to the same $1 as far as it is still in a stablecoin but like I said if you trade it to physical dollar and wants to spend it the dollar inflation will affect it's value in your dollar expenses.

Authomatically your 1 USDT purchasing power in US dollars is buying less than it's value in stablecoins so USD inflation indirectly affects the stablecoins that are pegged to it.

[Balmain]

You're right, I have nothing to say about that. Stablecoins aren't stable. They're just tokenized dollars. So, just like the dollar has inflation, stablecoins have the same thing because they're dollar-based. There's no formula to stop inflation like paper money because they have no real backing. It's true, the only stable currency is Bitcoin; stay with Bitcoin, hodl Bitcoin.

[Kavelj22]

You're right, I have nothing to say about that. Stablecoins aren't stable. They're just tokenized dollars. So, just like the dollar has inflation, stablecoins have the same thing because they're dollar-based. There's no formula to stop inflation like paper money because they have no real backing. It's true, the only stable currency is Bitcoin; stay with Bitcoin, hodl Bitcoin.

Adding the word stable means to be stable with the dollar price because it is a digital copy of the a real asset $. And this were dwell the evil. There isn't dollars equivalent to the virtual $$ circulating in the market as USDT crypto. It is created from thin of air as easy as to develop a smart contract into the blockchain and set its parameters to be value $1. Just keep issuing money and everything is fine.

[KingsDen]

The only truly stable money is Bitcoin, because it has a fixed supply. Nobody can print more of it, nobody can change its monetary policy easily, and everyone knows the maximum supply in advance.
The dollar is unstable and will continue to fall forever.

Hey, there is a twist of narrative here.
You seem to have superimposed the context. A truth in on context might be false in the other context.

To set the record straight, the word "stable" is used in the context of volatility and not that of inflation. So, in the real context, bitcoin is not a stable coin.
Again, for the fact that inflation eats fiat doesn't make it unstable. Stability is measured on the shortest period and not on the long term value.

So, bitcoin got us against inflation but it's price is not stable. While the stable coins can save us during serious volatility but not appropriate for long term savings.

We need both coins on different occasions and for different reasons.

[crwth]

Maybe you're talking about the power of your money? From your post is seems like you are talking about purchasing power and it is affected by inflation

Code:

fixed supply ≠ stable price

Having that price means its purchasing power, and with that analogy, it may be fixed in supply but not stable for market value.

There are reasons stablecoins exist, and there are different kinds: fiat-backed, collateralized, and more. Maybe you can specify it more, OP?

[Localhostspeed]

You're right, I have nothing to say about that. Stablecoins aren't stable. They're just tokenized dollars. So, just like the dollar has inflation, stablecoins have the same thing because they're dollar-based. There's no formula to stop inflation like paper money because they have no real backing. It's true, the only stable currency is Bitcoin; stay with Bitcoin, hodl Bitcoin.

I watched like 3 stable coins collapse last year and you know what's scary about them, there was never refund from the team, no compensation and not any form of give back to victims that hold the coin. Since that time, even usdt that is very stable and good, I don't think I will ever like to hold them again because they are not worth holding, you are running away from volatility of coins to stable coins only for stable to be too volatile than even the coins you are holding.

The experiences that has happened to stable coins is enough for people to avoid them forever, I have read many of them that lead to the collapse of the entire market, the ust that the founder even went to the prison for it. There are many more of them that has proved that stable coins can be flaw but people take risk to hold them than they shouldn't. I mean why not just hold the coin and sell when you are ready and liquidate your money if you want instead of holding them for longer time.

[Conqueror777]

Stablecoins are not stable. They are just tokenized dollars. The dollar is a fiat currency, and all fiat currencies are unstable by default, because they are inflationary.

A fiat currency needs inflation, usually around 2% per year, in order to survive. Without inflation, the fiat system would start to collapse, because it functions like a Ponzi scheme , it constantly needs new money, new debt, and new expansion to keep going.

Inflation is usually much higher than the 2% target that central bankers talk about. In recent years, it has gotten out of control, and the dollar is definitely losing around 10% of its value per year.

An ordinary person with an average IQ has a hard time understanding what is really happening, because he still sees the same amount of dollars in his account and has the illusion that the doalr is stable.You may have the same amount of dollars, but the prices of goods and services keep rising, so you can buy less and less over time.

The only truly stable money is Bitcoin, because it has a fixed supply. Nobody can print more of it, nobody can change its monetary policy easily, and everyone knows the maximum supply in advance.
The dollar is unstable and will continue to fall forever.
https://i.postimg.cc/7hbF3GN6/HGu-Swmk-W4AATyy-K.jpg

Yes but you could get interest on stable coins on various exchanges with APR close to 6-8% yearly. This will make up for the inflation that you've mentioned and also get you a small profit.

[Iamgoat]

You're right, I have nothing to say about that. Stablecoins aren't stable. They're just tokenized dollars. So, just like the dollar has inflation, stablecoins have the same thing because they're dollar-based. There's no formula to stop inflation like paper money because they have no real backing. It's true, the only stable currency is Bitcoin; stay with Bitcoin, hodl Bitcoin.

Welll. I think they call them stablecoins because although they’re also digital assets like Bitcoin, they are not as volatile as bitcoin and other altcoins. They are more stable for your day to day transactions than bitcoin which is volatile as the stablecoins are designed in such a way they maintain a stable asset usually the USD to avoid the high volatility of cryptocurrencies including bitcoin. But when you talk about the very long time, you may want to consider Bitcoin because it will go along way as it is more reliable than the fiat in which the stablecoins are based.

[fuguebtc]

You're right, I have nothing to say about that. Stablecoins aren't stable. They're just tokenized dollars. So, just like the dollar has inflation, stablecoins have the same thing because they're dollar-based. There's no formula to stop inflation like paper money because they have no real backing. It's true, the only stable currency is Bitcoin; stay with Bitcoin, hodl Bitcoin.

I agree with you that stablecoins are not really stable. They are also volatile and can even depreciate rapidly over time due to inflation. However, we need to understand one thing clearly, this is relative stability, not absolute stability. Do not misunderstand the concept of stablecoin and then blame them.

On top of that, we need to be real and honest with ourselves: Bitcoin is not stable. It is an asset class with high, if not the highest, volatility. And we invest in it because of its high volatility, hoping to reap huge profit.

[Delaforetnoire]

When it comes to stability, neither fiat currencies nor stablecoins are completely stable.

Stability is always given importance but nothing stays perfectly stable forever. In the crypto market, Bitcoin remains the most stable asset overall. Other coins that are considered stable still cannot be seen as equally stable like Bitcoin.

[DanWalker]

When it comes to stability, neither fiat currencies nor stablecoins are completely stable.

Stability is always given importance but nothing stays perfectly stable forever. In the crypto market, Bitcoin remains the most stable asset overall. Other coins that are considered stable still cannot be seen as equally stable like Bitcoin.

I have never seen a stable asset that can generate a profit. If Bitcoin is the most stable asset, why would you invest in it and expect to make a profit from it? You are contradicting yourself.

I dont know what you and some others base your claim that Bitcoin is stable on. But whether you admit it or not, the truth is that crypto is a speculative and highly volatile market. Bitcoin is part of this market, and we all invest in it to make a profit, not to seek stability.