Stablecoins aren't truly stable

Stablecoins really aren't stable. They're basically just digital versions of dollars. The dollar is a fiat currency, which by nature is unstable since it relies on inflation. Fiat currencies need inflation, typically around 2% each year, to keep functioning. Without this inflation, the fiat system would start crumbling. It works kinda like a Ponzi scheme, needing constant new money, debt, and expansion to stay afloat. Inflation often spikes way beyond that 2% central bankers claim. Lately, it seems like the dollar is losing roughly 10% of its value annually. Most folks with an average understanding struggle to see the bigger picture. They look at their bank account and think the dollar is stable since the number looks the same. But while you might have the same cash, the cost of goods and services keeps climbing, so your purchasing power is shrinking over time. The only real stable currency is Bitcoin since its supply is capped. Nobody can just print more, and the monetary policy isn’t easy to change. Plus, everyone knows the total supply beforehand. The dollar is shaky and it's only gonna keep dropping.

It is good to know that not only fiat collateralized stable coins are stable coins. Those like PAXG and XAUT that are backed by physical gold are stable coins. wBTC, BTCB and others backed by bitcoin are stable coins. RWA tokens are stable coins and so others that are backed and pegged to prices of assets are stable coins. You can not say because of inflation, that fiat backed stable coins are not stable coins. It is fiat that are not having stable prices, but the coins they are pegged with are stable coins

The market simply creates categories; your opinion doesn't change the fact that all global exchange platforms share the same definition of stablecoins and consider them the primary pairs to volatile coins. You're talking about fiat value instead of stablecoins.

Stablecoins don't represent stable purchasing power, there's no instrument that would do so, and the closest one would probably be s&p500 index. Stablecoin represents stable fiat value, they are not supposed to account for inflation and stuff like that. Maybe in the future Bitcoin will but for now you'd be better off with SPX500 most of the times.

Don't fool yourself please. As an hedging asset, Bitcoin has never been stable. If bitcoin was a stable, then it would never go up and down. It's also weird when you compared stable coin that is a medium of exchange to the Bitcoin, which is a commodity often used as a hedging against inflation. The fact that 1 USDC is 1 dollar because of it's backed by fiat money.  Even when you argue it's losing its purchasing power due to the inflation, but. 1 USDC still remain 1 USD unless it's depegging.

I know most of us have mad love for Bitcoin and can do anything to defend it even when it's not necessary or relevant. We can do better to situate our arguments in proper context to avoid ambiguities, such as we've here. For instance, there's no way Bitcoin should come into this discussion of stability. The semantics don't hold water on this. Bitcoin isn't stable. Perhaps, you meant fixed. Yes, it's fixed in supply but not stable in anyway. Stability has to do with price while fix has to do with supply. Exactly the point OP missed 👍

Stable coins are stable in the sense that they're not moving so much in value, as you compared it with bitcoin. It's like you're comparing oranges to apples. We're all for Bitcoin and that's not going to change that its stability for staying in the market for so long. Whilst the stable coins are dealt with its value through dollars, they're just defined as crypto but there's not a lot of difference from the fiat that's turned into digital cash.

Bitcoin is stable money. One sats is always one sats. The dollar is unstable. I know this is hard for some people to understand, but try. Bitcoin is fixed. It has a fixed supply, and nothing changes in Bitcoin. The dollar, on the other hand, is volatile and unstable. It will continue losing value forever. Inflation has to exist in a fiat system, and it can turn into something called hyperinflation overnight, where the dollar starts falling very fast as inflation accelerates. Dollar is extremely unstable and risky. Bitcoin is stable. You need to wake up from the matrix. https://www.youtube.com/watch?v=jmAEqJkGiCw

The irony of this whole argument is that both of us seem to think we've a better perspective to the whole thing than the other person. You think you understand the debate better but I believe I grasp it better than you do. Though, none of our arguments will fetch us a medal. It's an academic exercise, and not a futile engagement. However, I will like to leave this here – Bitcoin isn't valued for itself. It's always measured against fiat. This is why this same argument will continue to reoccur that the value of Bitcoin isn't static. It's not stable.

i share the same sentiment about stablecoins being not actually stable. fiat currencies are not at all stable because there’s always risk of it collapsing however in the context of crypto market, fiat will look relatively stable. bitcoin is stable in terms of what you’ve mentioned but it’s not stable in terms of price. at least not yet. it’s still volatile because it relies heavily on supply and demand.

Depends on what stable coins are you talking about. But in any case, they could have been running on fractional reserves similar to banks that why they are not stable as what you have projected. But there are established ones, not that I'm on their side, but somewhat stable coins are here to stay. They have a lot of "investors" using it to hedge their money if the market is unstable and that is one use case for stable coins.

Basically there is nothing stable in this world, neither gold nor dollars nor other fiat currencies, because it will come back to demand and supply, even if it is stablecoins, it is only based on assets / money whose value does not have higher fluctuations and we can see relatively stable, I myself see how the price movement of any asset is or is considered valuable, if the demand is high then the value will continue to rise because the demand is very high.

Clearly about stable coins: Stablecoins So are they truly stable? No, they are not stable, but the volatility is very low. This is pegged 1:1 with a specific asset. Stable coins can also change due to market sentiment, panic, flawed algorithms, and other factors.

I don't see stable coins as investment because they don't appreciate in value and there is no way you can make money from holding stable coins since there price don't appreciate. People are holding Stablecoins because they don't want their Bitcoin or altcoins to lose value due to the market volatility. People were surviving before Stablecoins was seen as a safe ground to reduce the possiblity of your token losing value so quickly due to the market up and down movement which could be quick.

That is so very true. Nothing in this world is actually stable as the earth itself keeps on revolving. Everything is uncertain as we never know what might happen. Even though stablecoins look stable as of now, they might experience a sudden dump if by any chance the US dollar depreciates even further. That means the most stable crypto will no longer be stable and that might create panic like situations. People trust stablecoin just because they believe they will never have a sudden loss/profit if they are holding their bag in stablecoins. Any monetary value is decided using the demand and supply factor. This has been going on since ages so there is nothing new in it. I am sure even an elementary school kid can understand the basic demand and supply factor.

Sadly most people judge something by the thing they're used so BTC is judged in dollar value and people considers stablecoin which pegged to dollar as stable because simple, 1:1 against dollar is stable in their book. The reality, stablecoin is better suited to be called inflationarycoins because the value is getting eaten by the inflation and the never ending money printing. Honestly, the real stablecoin is gold pegged stablecoin, besides bitcoin.

People call stablecoins "stable" just because its 1:1 with USD, but the USD itself is not really stable in long term because of inflation. So in that sense, the value can still slowly lose purchasing power over time. Gold and bitcoin are different because they are not ties to constant money printing so yeah, depends on what standard you're using.

I would still say stable coins are stable because of low volatility. I do not consider them being paired with the US dollar but I compared the volatility and seems like these stable coins move in a much closer range without any sudden movements. That makes it more easier for me to take small trades in order to make profits with minimum to no risk. Inflation has always been there. It is only now when we started to observe changes taking place due to inflation. By stable coin, we do not mean that market cap will remain stable but the price range should be stable. Bitcoins might have a fixed supply but they still do not have a stable price which makes them much volatile. I would never make an mistake to consider bitcoins as a stable coin.

If the OP brought a slightly different narrative regarding the "stable coin" doubts, perhaps his opinion would be supported even though it has been discussed many times. Facts have proven several times that 1 stable coin (USD) is not always equivalent to 1 USD fiat. For example, in cases of freezing, burning, aand UST drama which loses its intrinsic value.

This actually just a different perspective in my opinion. According to Google, A stablecoin is a type of cryptocurrency designed to maintain a stable value by pegging it to a reserve asset, most commonly fiat currency like the US dollar. Unlike volatile cryptocurrencies such as Bitcoin, they are designed for lower volatility, making them suitable for payments, remittances, and storing value in the digital asset ecosystem. Well what you said is true that dollar has inflation and loses its value but this happened to all other fiat aswell, that is why crypto and other safe haven like gold exist because limited supply hard to mine made that more valuable. Tho with Stablecoin atleast we can hold USD on any chain and in theory we could use it way and much easier than paper money or USD in the bank.