In this post I will try to answer some questions that I was asked these days, regarding this guide.
What are the risks (financially, not security) of stable coins?
Currencies like USDT that are centralized have the risk that they are manufactured without backing. DAI is different, because it is decentralized and works with a "relatively complex" system of crypto collaterals (volatile currencies like ETH or BTC, which give value to DAI). The risk is that this system will fail, although it is audited by several serious companies and has already withstood very strong drops in the price of collaterals.
That is, who guarantees that USDT or DAI, for example, will cease to exist from one day to the next, or its value for some reason will suddenly depreciate? Could someone hold a stable coin for 10 years like no worries?
Yes, it is technically possible, but not highly recommended. 10 years is an eternity in crypto (although Bitcoin takes that long). For example, DAI was migrated from an old system to a new and improved one. The old coin (SAI) can be used technically, but it has almost no movement.
The idea of ??having a reserve of value for 10 years or more, perhaps the best thing would be to buy dollars and keep them in a safe. Surely in 10 years they will be able to be used, although dollar inflation (which exists and is significant at that time), will reduce it. A bit strange plan, but valid.
As for any investment, it is advisable to investigate before taking the action. Each coin is different. There are a variety of risks.
