A Dogecoin insider advocates that it is better to hold Dogecoin, Bitcoin, or Litecoin than possessing stablecoins like USDT or PYUSD.
Mishaboar, a known Dogecoin community leader, has been frank and straightforward about stablecoin, saying that it is “riskier” than the other digital assets.
Is It Risky To Own USDT?
In a post, Mishaboar advised investors that getting stablecoins like USDT, USDC, and PYUSD are “inherently risky”, saying that having these digital assets could potentially harm the holders.
The community leader said stablecoins are unsafe because of their centralized nature. He explained that centralized coins like stablecoins are risky assets, adding, “Entities behind them could freeze your coins if they want to or are asked to.”
Currently, the two largest stablecoins are USDT and USDC. Another stablecoin, Paypal’s PYUSD is also picking up traction.
Some of the entities managing stablecoins include PayPal, Tether, and Circle, which Mishaboar claimed has the power to freeze investors’ stablecoin assets if they wish to.
It can be recalled that there are allegations against Tether for manipulating Bitcoin price in 2017, which resulted in the exponential rise of BTC’s price.
Dear #Dogecoin, as I have repeated countless times:
holding “stable”coins like USDT or USDC or PYUSD is inherently risky. Not just in the (always possible) case of a catastrophic collapse of whatever castle of cards or institution is backing them.
They are risky assets…
— Mishaboar (@mishaboar) October 25, 2024
Other Risks
Mishaboar said that stablecoins are prone to collapse making it risky to own, saying that there is always the possibility of a “catastrophic collapse” regardless of which organization or institution is supporting the crypto.
He said that other cryptocurrencies, stablecoins are not totally guaranteed, saying that investors hold these digital assets in an exchange that is normally “completely uninsured.”
“While it comes with the risk of volatility, holding a decentralized asset like BTC, LTC, Doge, or Monero is IMO much less risky, overall – even though this might sound provocative at first (especially when Doge is added to the list, I suppose),” Mishaboar said.
Are There Better Coins?
In recent times, many traders have seen a lot of promise in stablecoins. Even online payment processing giant Stripe made an effort to embrace stablecoins by purchasing Bridge, seeing its potential in processing cross-border payments.
However, Mishaboar does not buy into the potential of stablecoins, believing that there are better options in the cryptocurrency market than stablecoins.
Mishaboar said that when it comes to volatility, he prefers cryptocurrencies that are not centralized.
He remarked that if someone wants to own assets that are locked in value with the US dollar or Euro currencies, he suggested getting fiat, gold, or real estate instead of keeping mountains of stablecoins.
Featured image from Bitget, chart from TradingView