Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Stable Coins Forum => Topic started by: MetaAttorney on March 31, 2024, 04:11:54 PM
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Stablecoins are truly a good store of value. Saving in these assets could serve as a hedge against inflation.
Through time, we have seen stables backed by cash equivalents, the likes of Tether; $USDT, USDC etc.
As the innovation of stablecoins continue, at some point we noticed the advent of algorithmically backed stables like $UST.
Interestingly, this innovation has not ended. Does anyone have an idea of worthwhile stables to save in?? Apart from the aforementioned with cash equivalents.
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Stablecoins are truly a good store of value. Saving in these assets could serve as a hedge against inflation.
If inflation happens then stablecoins will not serve as a hedge since they will be affected just as fiat money!
If a product costs 20% more now in dollars or euros it will cost 20% more in usdt or eurc also!
Keeping your money in stablecoins to fight inflation is a losing battle you're far better just keeping it in fiat in the bank and at least getting interest for it or buying treasury notes! Not even mentioning the fact that if the company issuing the stablecoins goes bankrupt or hacked you're going to maybe lose everything, remember UST!!
https://www.coindesk.com/layer2/2022/05/11/the-luna-and-ust-crash-explained-in-5-charts/
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As the innovation of stablecoins continue, at some point we noticed the advent of algorithmically backed stables like $UST.
I don't think that is new though. I remember reading some projects who claims to offer a algorithmic stablecoin so they don't rely on users's conversion rate to maintain the $1 per token value. What kind of advancement do they offer? IIRC, USDT also moved to use other assets other than cash to back the value of their token. Basically, there's no guarantee that 1 USDT is USD. CMIIW.
Agree with what has been said above. If you feel comfortable storing fiat for years, use fiat directly instead of a stablecoin. If growing your capital is your goal, then invest in other assets, with the obvious one being BTC instead of USDT and its clone.
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Stablecoins are truly a good store of value. Saving in these assets could serve as a hedge against inflation.
Through time, we have seen stables backed by cash equivalents, the likes of Tether; $USDT, USDC etc.
As the innovation of stablecoins continue, at some point we noticed the advent of algorithmically backed stables like $UST.
Interestingly, this innovation has not ended. Does anyone have an idea of worthwhile stables to save in?? Apart from the aforementioned with cash equivalents.
I guess. But I don't think entirely stable coins help edge against inflation, but if you're looking for options, I didn't see you mention usde, it's backed by ethena labs and has some cool features that i like