Alternative savings accounts

[dullard]

What stablecoins have crashed? I know about TerraUSD. But, have any Fiat-collateralized ones crashed? I haven't decided yet either. Been looking at this for a few weeks now.

The smoke and mirrors seem to have you bamboozled. Think about it. Fiat money is returning fairly low yields. But magically, if you convert it into something tied to a fiat currency, wait a bit, and convert it back you will have high yields? From where is this magic money appearing?

Sort this list of "stable"coins by the 7d change, plenty have lost more than 5% in the last week: https://coinmarketcap.com/view/stablecoin/

 

[dullard]

3) spend it. It's worth more today than it is tomorrow in the current environment.

If stockpiles of cash is bad in inflation, what is the opposite of cash? Debt. I'll take your option #3 and raise it. Spend that $10k and borrow money to spend more. If inflation continues, paying off the debt would be simple pocket change in the future.

 

[CU]

The smoke and mirrors seem to have you bamboozled. Think about it. Fiat money is returning fairly low yields. But magically, if you convert it into something tied to a fiat currency, wait a bit, and convert it back you will have high yields? From where is this magic money appearing?

My understanding is they take more risks with your money than a traditional bank. So, higher risk and higher rate. Think of it like a mutual fund. You put money in, wait, pull out and you have your magic money. Could it not grow as fast as you hoped sure. Could it go down, yeap. But the average is it goes up faster than a savings account.

 

[dullard]

My understanding is they take more risks with your money than a traditional bank. So, higher risk and higher rate. Think of it like a mutual fund. You put money in, wait, pull out and you have your magic money. Could it not grow as fast as you hoped sure. Could it go down, yeap. But the average is it goes up faster than a savings account.

And now you have your answer. "more risk" and "stable" are not compatible.

 

[CU]

And now you have your answer. "more risk" and "stable" are not compatible.

They just move in opposite directions of each other. Even local branch rates aren't perfectly stable. They change with the fed rate. You just have to decide where you want to be on the risk vs stable line. Which is what I am trying to do. Sky diving looks fun, until you are about to jump, lol.

 

[VirtualLarry]

Sky diving looks fun, until you are about to jump, lol.

Not sure which is safer, crypto investing or sky diving.

 

[Muse]

3) spend it. It's worth more today than it is tomorrow in the current environment.

Good point. If you figure you're going to need something and it's got a shelf life you're OK with, better to buy it now than next week when inflation is much greater than returns and expected increase in income (which is averaging 5% now for Americans, worse for those on fixed income I believe).

 

[deadlyapp]

They just move in opposite directions of each other. Even local branch rates aren't perfectly stable. They change with the fed rate. You just have to decide where you want to be on the risk vs stable line. Which is what I am trying to do. Sky diving looks fun, until you are about to jump, lol.

If you want to take the risk then why not just do it the tried and true way through actual mutual funds and/or stocks? At least those are partially tied to something tangible, like performance of a company, unlike any crypto which is pure speculation.

 

[Torn Mind]

Crypto is just Forex.

 

[CU]

If you want to take the risk then why not just do it the tried and true way through actual mutual funds and/or stocks? At least those are partially tied to something tangible, like performance of a company, unlike any crypto which is pure speculation.

And that was my first though. Researching that was how I ran across crypto savings accounts and stablecoins. And, as I already have stocks and mutual funds I thought maybe it would be good to try something else. A am also starting to lean toward I Bonds. odds are I want need the money. Maybe split it. Half in I Bonds and half in crypto savings.

 

[Captante]

Good point. If you figure you're going to need something and it's got a shelf life you're OK with, better to buy it now than next week when inflation is much greater than returns and expected increase in income (which is averaging 5% now for Americans, worse for those on fixed income I believe).

Also instant-gratification has the very real advantage of being both instant AND gratifying!





Sadly however at this point Prime-day is over!

 

[CU]

Crypto is just Forex.

I have also heard it compared to gold, sliver, etc. People just value them to value them. A bar of gold doesn't do anything. Sure it can be used for some stuff, but the value is still higher than it really should be based on just that.

 

[Lost_in_the_HTTP]

I've heard it compared to fairy dust and leprechaun sweat.

 

[CU]

I've heard it compared to fairy dust and leprechaun sweat.

The gold reference was by the CEO of a large banking company I work for. During most town hall meetings we have someone always ask when we will add crypto support. So, far we don't have plans to support it. Just like we don't allow you to move gold to silver to cash.