Which stablecoin the safest?

[nakmantu99]

I think USDT is the best stable coins, although there are several stable coins such as USDC, BUSD etc.
But I'm more confident in Tether USDT.
Sometimes I used another stable coin but will back to USDT.

[dkbit98]

None of the stable coins are safe and they will never be safe.
Tether is currently has most usage worldwide, and many people in third world countries use it more than they use bitcoin, because their local currencies are worse than dollar.
They look for more stability with tether, but in long run they are also losing battle with inflation, so I would only use stable coins temporary.
On top of that, I am sure regulators can always make any stable coins illegal and freeze coins whenever they want.

[NikeFit_7777]

Let's start with what exactly is security for each of us? How much money will be stored/for how long, etc. First of all, ask yourself this question. Then you will find the answer to it.

To store on a permanent basis - definitely USDT. If we are talking for a day/two days and no more - USDC. I don't trust any of the steiblcoins from coinmarketcap anymore.

P.S. Try not to trust little familiar projects. Absolutely no CEO of any project will prove that the impairment of its stablecoin is 100%. By no means is this a call to action. Always think with your head.   

[aiviaa485]

although there are several stable coins such as USDC, BUSD etc.

BUSD has now been removed from the market due to various factors including SEC regulations which require Changpeng Zhao to remove it, perhaps the information about bUSD being removed was 2 months ago.

Maybe I would suggest that DAI is aaaaaaaaaa stable coin that is recommended for privacy and is safer.
But I don't really understand what "Privacy" means for DAI coins because what is called a stable coin must have a real backup.
I've also checked on the DAI website >> http://www.makerdao.com/, here it explains a lot about the safety and privacy of DAI coins but I haven't tried it to buy from DEX, except I've tried buying it on Binance Exchange for trading P2P.

[bitterguy28]

In respect to this topic, which is currently being discussed in the Bitcointalk forum:
Tether USDT and it's freezing features

I will like to ask about the best stablecoin, which could be considered the safest in terms of privacy and freedom, which includes being in full control of your holdings.

I am only using USDT but never that I leave my funds inside , meaning i just used USDT when need to convert into fiat or sending to someone that needed not to use other volatile cryptocurrency.

but all in that I rather maintain my holdings in my Bitcoin or altcoins that stable coins , but still USDT is the best currency to out your funds in stable position.

[tbct_mt2]

Why do you think stability = US dollar?

I know about decreasing purchasing power of the US. dollar as well as other fiat currencies. Because they have have similar problem, inflationary and with inflation of their fiat currency supplies, purchasing powers of those fiats must drop with time.

Purchasing power of the US. dollar over time


I meant in my post, that if you have to choose between US. dollar and stable coins that peg their values to US. dollar, choosing US. dollar will be better.

Both US. dollar and stable coins are inflationary but only stable coins can lose their pegs. Like if you have 1 USDT, in theory it equals to 1 US. dollar but when USDT peg is lost, your 1 USDT can become 0.1 US dollar. Terrible.

[Peter90]

Purchasing power of the US. dollar over time

This chart deserves 3 karma points  How wonderful...
I will use it!
Thanks tbc!

I meant in my post, that if you have to choose between US. dollar and stable coins that peg their values to US. dollar, choosing US. dollar will be better.

Both US. dollar and stable coins are inflationary but only stable coins can lose their pegs. Like if you have 1 USDT, in theory it equals to 1 US. dollar but when USDT peg is lost, your 1 USDT can become 0.1 US dollar. Terrible.

I understand your point.
I can make the same point ($ is better than USDT) from another angle: $ is legal tender in the USA: US sellers are obligated to accept $ as a means of payment.
USDT is not legal tender, so sellers can refuse to be paid with it.


How can a company guarantee the peg?
Backing their stablecoins 1:1 with what their stablecoins are pegged to.

So, how can a company guarantee that their $-backed stablecoins are pegged to the $?
Backing each stablecoin with 1 $

How can a company guarantee that their gold-backed stablecoins are pegged to the price of a gold unit?
Backing each stablecoin with 1 unit of gold.

Why are audits - regular audits made by an independent company - so important?
Because they guarantee that the stablecoins are backed, i.e. that the peg is not in danger to break down.

Why Kinesis is better than Tether Gold? 
Because Kinesis let their metal get audited regularly - each 4 months - by an independent party, Tether Gold don't.

[tbct_mt2]

I understand your point.
I can make the same point ($ is better than USDT) from another angle: $ is legal tender in the USA: US sellers are obligated to accept $ as a means of payment.
USDT is not legal tender, so sellers can refuse to be paid with it.

Legal tender is one of disadvantage of stable coins compares to fiat currencies.

How can a company guarantee the peg?
Backing their stablecoins 1:1 with what their stablecoins are pegged to.

Why are audits - regular audits made by an independent company - so important?
Because they guarantee that the stablecoins are backed, i.e. that the peg is not in danger to break down.

Some topics on Tether stable coin and audit reports.
Tether Excess Reserves Q2 2023
Independent auditor's report on the consolidated reserves report.
Stable coins: a deep dive into valuation and depegging.
Download it.
Independent Auditors' Report on the Consolidated Reserves Report (September 2023)
https://tether.to/en/transparency/#reports

[Peter90]

How can a company guarantee the peg?
Backing their stablecoins 1:1 with what their stablecoins are pegged to.

Why are audits - regular audits made by an independent company - so important?
Because they guarantee that the stablecoins are backed, i.e. that the peg is not in danger to break down.

Some topics on Tether stable coin and audit reports.
Tether Excess Reserves Q2 2023
Independent auditor's report on the consolidated reserves report.
Stable coins: a deep dive into valuation and depegging.
Download it.
Independent Auditors' Report on the Consolidated Reserves Report (September 2023)
https://tether.to/en/transparency/#reports

Thanks tbc,
but I was talking about Tether Gold, not about Tether USDT.
 

[Z-tight]

I will like to ask about the best stablecoin, which could be considered the safest in terms of privacy and freedom, which includes being in full control of your holdings.

Take note that with stable coins you cannot get privacy nor freedom, stable coins are issued by centralized companies and they are regulated by the government and will provide them with any information they neet at anytime. Stable coins can also be frozen by the issuers, even if you have it stored in your own wallet.

I don't consider any stable coin to be safe for storing funds, if you are a trader you probably need it, but other than that, it is not recommended to store your money in stable coins.

[jonathancool220]

I don't consider any stable coin to be safe for storing funds, if you are a trader you probably need it, but other than that, it is not recommended to store your money in stable coins.

Your statement about stable coins is very reasonable and can be understood by a few people, I too, after observing stable coins for a long time, have the same thoughts as you.
The scariest thing is when I store USDT coins in a personal wallet and then it is frozen by the owner of the stable coin, I will definitely be confused about how to claim it.

If you don't store in stable coins such as USDC, USD, DAI and FDUSD, what cryptocurrency coins do you store?
Btw, are you the type of investor, trader or something else in this cryptocurrency environment?
Do you fully store your assets in Bitcoin and Ethereum or what?

[yhiaali3]

In general, there is no stablecoin that is 100% safe. Stay away in particular from stablecoins owned by exchanges because they are mostly worthless because they do not have real asset coverage on the ground.

USDT is the most popular and widely used stablecoin, but it is not secure at all. You can only use it for trading or transfers.

Decentralized stablecoins like DAI are somewhat better, but they are also not completely reliable and are not very popular.

[Z-tight]

The scariest thing is when I store USDT coins in a personal wallet and then it is frozen by the owner of the stable coin, I will definitely be confused about how to claim it.

There will be no way to claim it, except if it is unfrozen by the issuers of the stablecoin.

If you don't store in stable coins such as USDC, USD, DAI and FDUSD, what cryptocurrency coins do you store?
Btw, are you the type of investor, trader or something else in this cryptocurrency environment?
Do you fully store your assets in Bitcoin and Ethereum or what?

I don't store stable coins, neither do i store Ethereum. The only coin i use and store for now is BTC, i prefer to use a coin that i am fully in control of, that is why i store BTC in my own self custodial wallet and not in any centralized platform.

[Brewmaster]

Determining the safest stablecoin involves considering factors like transparency, regulatory compliance, and the backing of reserves. Some widely recognized stablecoins with transparent reserves and regulatory compliance include USD Coin (USDC), TrueUSD (TUSD), and Gemini Dollar (GUSD). However, it's crucial to stay updated on developments and do your own research, as the cryptocurrency space can be dynamic.

[Wiseman]

Why do you think stability = US dollar?
US dollar vs. Singapore dollar
last 40 years
Currently the US dollar is losing 8% of its purchasing power on a yearly basis.
Why would you store your wealth in an asset that is losing 8% of its value each year?

There is no conviction in your comparison that the dollar is falling in the whole market.
It's just a comparison with one of the currencies that may be much more expensive and stronger than the dollar,
But it does not mean that the dollar is falling everywhere, there are plenty of examples of reverse charts with currencies of different countries.