Hi, I'm a normie who finally got into crypto in nov 2021. But I don't get stable coins. When you sell your crypto, why don't you just convert back to fiat and put that fiat into your bank account right away? I worry about stable coins becoming un-pegged; this is a big concern for me; it's an extra worry that you don't have if you just convert back to fiat right away.
I can see using stable coins as a trading pair to purchase alts on a dex but I don't understand holding stable coins for longer periods of time like weeks, months or years as a store of value; to me this feels way too risky. What am I missing?
Might be different if you could do a lot of your every-day normal shopping with stable coins but right now you can't.
In many countries it is still very difficult to sell your coins and then put that money in a bank account and then get back to the market, this is a process that can last days or even weeks, and whether you are a trader or investor this time frame is simply unacceptable, this is why stable coins exist, as people can enter and get out of any coin in a matter of minutes or even seconds, this also improves the liquidity of exchanges and coins, so on average stable coins are quite useful in this market whether we like it or not.