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.
Maybe your concerns are much different from mine. I'm more worried about the Fiat at the moment. If crypto continues to grow, there is a possibility that Fiat will be abandoned and become a stable coin as a replacement for Fiat. The security level of stable coins is much higher compared to Fiat. If you deposit large amounts of money in the bank, is there any guarantee that your money will be safe? If the defendants in the bank ran away and took all your money, would the state that gave the license to the bank pay all your money? The financial authorities limit you to keep a certain amount of money in the bank. If you save more than the specified amount, the financial authorities will not provide any guarantees.