With this possibly upcoming crisis in mind, what you guys think about investing in stable coins standardised with fiats?
Is is even a thing, that they will sink like a stone, just like fiats will? Are there any mechanisms that can protect such stablecoins?
Or maybe, I have a misconception of the reasons for their existence and nobody is actually hoarding st.coins?
I honestly do not believe in stablecoins solely based on the fact that it adds another layer of centralisation to fiat.
Fiat itself is already created by a centralised entity, and its intrinsic value is zero or close to it. Yet, people seem to blindly trust in it and create stablecoins that reflect its value. Now, not only will you have to face the consequences of the value of fiat dropping, you'd also have to essentially trust that the stablecoin issuer is not doing anything shady in the form of fractional reserves, etc.
It's definitely not something I'd want to hold in times of economic despair, where bank runs and liquidity issues are widespread.