Stablecoins has its use case. No one cannot deny that. The crypto market can move in any direction where Stablecoins are supposed to be stable. If you do trading, most of the time, you may use Stablecoins. Maybe you hold Stablecoins as a part of the portfolio.
Have you ever thought of how stable the Stablecoins you hold?
When the crypto price falls, you can buy that with Stablecoins. Since Stablecoins price is pegged to $1, you feel relaxed having Stablecoins. You know you can use them at any time.
What happened to TerraUSD(UST) makes you think again about how stable the Stablecoins are. You feel like holding fiat currency while having Stablecoins. Because of inflation, fiat currency loses its purchasing power. So what you hold now in fiat currency will not be the same next year. Its value will decrease, but it will not be turned into ashes like UST.
Many people lost their hard-earned money with UST. Everything happened so quickly that they did not get a chance to get out of there without any loss. It is sad to see how adversely it affects people.
After collapsing UST's peg, one of the most popular Stabelcoins Tether (USDT) shakes a little from its peg. It dropped its price from $1 to $0.9524. This is not a situation you want to see, it can create panic in the market as it did with UST. And we all know what could happen when people get scared.
As Tether says on its website that it's 100% backed and fully transparent but you know how transparent it is. There are a lot of controversies around USDT. What if expected things happen?
It makes you think twice about the Stabelcoins you hold. I think you hold Stablecoins that you are comfortable with. In spite of the market crash, HBD holds its peg close to $1. And you know about its swing and then move back to its peg.
But if USDT keeps falling from its peg, people react to it differently and it can have a huge impact on the whole crypto market. Although we always expect positive things, we have to be prepared for the worst.
No matter what happens, we want to move forward. There might be hiccups on the way, but that cannot stop us from moving toward our destination. What blockchain offers, you cannot get it anywhere.
So what do you think? Do you make any changes in Stablecoins that you hold? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.
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Hi, I am Rezoanul Vibes. I'm a content creator and passionate learner. I write about lifestyle, finance, martial arts, and digital marketing. I'm glad to meet amazing people all over the world.
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