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This is an awful case of preconceived notions! Stablecoins are not speculative or investments at all - their price stays the same. That's where stable in stabl
by FergusArgyll 1y ago
This is an awful case of preconceived notions!
Stablecoins are not speculative or investments at all - their price stays the same. That's where stable in stablecoin comes from.
You see crypto and think day trading
- throw101010 1y ago> their price stays the same. TerraUSD enters the chat You're right that they aren't speculative in the financial sense of "hopefully gaining value over time", but you do speculate (in the more general sense) on the fiat-pegging mechanism(s) to work to preserve the value you are storing in them...
- scyclow 1y agoThere are different flavors of stablecoins though. There's the ponzi scheme flavor that is propped up based on hand waving alchemy, and there's the boring (and now regulated) flavor that's actually backed by real money.
- lavezzi 1y agoAnd who is the authority to prove which stablecoins are ponzis and which are 'backed by real money'?
- xboxnolifes 1y agoSure, in the same way that holding USD is speculating that the government won't halve its value tomorrow. There's speculation, and then there's speculation.