The difference between a stable and non-stable coin !
Do you prefer to hold a stable or non-stable coin ?
To answer this question, I think we should look at many aspects. I personally prefer to hold a non-stable, always growing coin. For example Bitcoin or Ethereum. Because I think about the long-term investment and I think it's the best way to save and multiple my money. Of course, I consider the risk, but I prefer to risk rather just to spend everything and regret after that I didn't try.
If we talk about stable coin, I think it's good for trading. It's so predictive. But in the other hand, those who are used to earn interests from their deposits in fiat, may move faster to crypto if they find a better place to invest. For example those who have deposits with 1% - 5 % a year with banks, of course they will prefer to put their money in HBD with the interest of 10%. Because their money maybe more safe here and they will not have to pay taxes for that.
There are as well stable coins that are created only for speculations. I think even if their market cap is huge, the value they provide is not that big. They need to find more use cases for their cryptocurrency to survive. I mean a crypto like USDT or USD coin. Their stability is compared only to dollar price, but not bitcoin price.
Look at the chart, that all time one. The price of USDT in terms of bitcoin is always going down in long term. Can we say that's a safe investment ? I don't think so. Those who held bitcoin for such period of time, could earn much more than if they just bought USDT and held it.
It's hard to guess what will happen to any crypto in the future, but depending on what I wrote above, I would say that non-stable coin maybe better for long-term investment and the stable coin is better for short-term investment.
By long I mean a few years and by short a few months.
So, that's my thesis and I may be wrong.
What do you think about this ?
Posted Using LeoFinance Beta
