Re: Are stablecoins a definite solution against a bear market?
In a dreaded bear market that's lasts a long time, do you think that stablecoins are the definite solution for preserving one's investments?
So far, there has been a few stablecoins like Tether and NuBits which have gone lower than $1 at rare occasions. For investors depending on stablecoins as safe-haven assets against a bear market, this brings some disappointment. Still, stablecoins are able to retain their value against the USD most of the times. If they remain as is, then one could simply pour money into stablecoins to protect yourself against a long-lasting bear market. If prices for cryptocurrencies on the market go even lower than usual, you can even sell your stablecoins back into crypto to get more coins for your money. But this might turn to be extremely risky in a volatile crypto market.
What are your thoughts?
So far, there has been a few stablecoins like Tether and NuBits which have gone lower than $1 at rare occasions. For investors depending on stablecoins as safe-haven assets against a bear market, this brings some disappointment. Still, stablecoins are able to retain their value against the USD most of the times. If they remain as is, then one could simply pour money into stablecoins to protect yourself against a long-lasting bear market. If prices for cryptocurrencies on the market go even lower than usual, you can even sell your stablecoins back into crypto to get more coins for your money. But this might turn to be extremely risky in a volatile crypto market.
What are your thoughts?
For me, due to the personality I do have, I would still consider having and holding into cryptocurrency despite of the bear market that we can experience in no time. I know the risk being associated on getting into this industry I am currently into and for me, I do love taking risks and challenges which I can acquire on staying with cryptocurrency. Although stable coins can do provide me stability in terms of price, I think it is just like having fiat on my hand that just take small improvement which is for me looks ordinary and boring. But I do consider having stable coin at the same time keeping in hand my cryptos. Bear market have lots of lessons to teach us so we must not be afraid on being in a situation like that because it is just a normal scenario we must take to be able to improve our intellectual capacity and at the same time seein a world out of our boxes.