Hello Everyone
With inflation on the rise, saving in stable coin has proven to be a better option as compared to fiat which has suffered greatly in many countries. It's little wonder why three top stable coin rank in the top 10 with USDT, USDC, BUSD occupying 3th, 4th and 8th position respectively.
Using the national currency of my country as a case study, it has been one of the most affected with the Naira having lost significantly in comparison to the USD.
With inflation rate in Nigeria currently sitting at 17.71% according to the National Bureau of Statistics and exchange rate suffering, savings in Naira is a bad idea for some looking to stay ahead of inflation with food and fuel prices on the continually increase.
Investing in crypto stable offers more rewards than fiat coupled with the interest some pay for locking up your fund in savings. The HBD for example gives a fixed APR of 20% which is a far better incentive than the traditional banking industry can offer.
Having taking the initiative to save in the HBD earlier this year has been one of my best decision this year has I could get more fiat if I decide to convert now seeing how it has risen during this period. In January 2022, a dollar to the Naira was worth 545/$ but as at the time of writing this post it sits at 678/$. That is about 25% loss of value against the dollar.
Looking for a trusted stable coin to save, HBD on hive got you covered. The pHBD-USDC LP on PolyCub and the newly added bHBD-bUSD LP at CubFinance are also great places to lock up your funds. They offer APR as high as 40%. Don't sleep on it
Thanks for Reading
Posted Using LeoFinance Beta
Even in fiat, the banks still will want to make some gains from you through maintenance fees e.t.c but when it comes to crypto such isn't accepted. Crypto is better
The American dollar has absolutely dominated other national currencies recently. I think that crypto's biggest use-case at the moment is that it enables people to easily change their unit of account from a non-US national currency to USD.
The downside is that many stablecoins carry project risk. The recent Terra implosion that caused UST to depeg and plummet to >$0.10 absolutely destroyed the lives of people who were only invested in stablecoins.
I think you're absolutely right, and you've provided a great example of how USD-pegged coins can help combat inflation, but I am very leery of most stablecoins. There are a few that I hold, but they are my personal favorites - I feel confident that they will not depeg.
I guess what I'm trying to say is that there are a lot of popular stablecoins out there that are sketchy. Anyone interested in stablecoins should keep that in mind and do a little bit of research before investing.
Great post, and thanks for sharing your story.