Blue Dollar Vs. Crypto, which is better: USDT, DAI or USDC

He blue dollar is indomitable, Round 500 pesos And it canceled the new $2,000 bill before the government even launched it.

But outside the caves and the dichotomy between “little face” and “big face”, Digital dollar purchases are up strongly these days: 40% over the past week, “If it doesn’t go higher, it’s because people don’t have more twine”, charted for iProUP a key operator.

The panel following the major exchanges looked at how stable coins as DAI, USDT or USDC, Traded 1:1 with green tickets, exceeded 50% of the trading volume on the previous dayBitcoin buying drove it to the top of operations this year.

Digital dollar: why are Argentines buying more and more?

,One of the Great Benefits of Treasuring stable coins is that you can buy unlimited,Indicates iProUP Mattias Alberti, Director of Operations (COO) of. GoodIt warns however that some platforms require a deposit limit (in pesos or dollars) according to the economic capacity of each user.

He says that “it makes Differences with respect to other financial or banking platforms that restrict dollar amounts Which can be acquired, for example, per month”.

experts list Advantages of crypto-dollar in relation to dollar banknote,

• Security: There are no duplicate cryptocurrencies and the balance shown in the wallet is 100% genuine. Besides, no “fake” tokens no possibility of theft or confiscation
• immediacy and lack of middlemen: buyer can send the amount he wants Anywhere in the world, 7 days a weekwith instant recognition
• divisibility: “In Argentina, the conversion value of a $100 bill may be different from a $50 or $20 bill. In the crypto world, no. all fractions have the same value,
• ancient time,Digital dollars do not depreciate or depreciate, On the other hand, this happens with old or ‘small face’ bills, which are not accepted in some countries.”

On the other hand, Stable coins can also be invested, productive Returns up to 4% per annum on local exchanges(A fixed term in dollars gives 1.5%).

Even more: Since there are so many digital exchange houses, it is possible to arbitrage and make a profit by buying cheap and selling more expensive. According to Cryptoya, at press time, a USDT:

• It was bought at Bitso for $465
• It was selling for $480 on Binance P2P

Therefore, got about 5% profit in few minutesA maneuver that many savers repeated until the market stabilized and the gap narrowed.

Alberti says it’s also You can use stable coins To shop anywhere in the world that accepts your Prepaid MastercardSince this is done as if it were a debit to the day’s exchange rate, which is usually at par in the blue.

opposite of this, Dollars in the bank account are debited to the officer In case of purchase in Argentina. And an added benefit: If you want to spend with the CryptoCard, you get a refund for each use.

Also, they a Good way to “withdraw dollars” from banks given the impossibility of doing it over the counter: With BuenBit, the only exchange that allows you to receive transfers from a bank account denominated in US currency, it’s possible Convert “physical” greens to digital in a few steps,

Digital Dollars: Which Are the Most Reliable?

strictly speaking, There are different digital dollars different from reservation type (or collateral) which they use to maintain peg ,Equality) with the greenback:

1. Fiat Collateral

They keep at least $1 in a bank account for every token issued, they use it usdt and usdcWhose capitalization is US$81,000 M and US$30,000 M respectively.

,They are malleable, forfeitable and carry counterparty risk. For example, those behind stablecoin They walk away with the money, the bank goes bankrupt or the government confiscates the funds,” says Maximiliano Carzuza, co-founder of the MoneyOnChain project, which offers DOC crypto-dollars, as a disadvantage.

Another feature is that they are issued by companies, that is, they are centralized, In the event of a crisis, anyone who invests or saves “should be confident that these companies will always follow through on their part, maintaining a security in the dollar equivalent of the tokens they have issued,” he commented. iProUP Iñaki Apazztegia, founder of Crossing Capital.

Eugenio Bruno, a lawyer specializing in finance and cryptocurrencies, explains iProUP that if ok can be supported”terms of contract Do not establish standards or requirements in the composition of reserve assets,

Therefore, There are some who manage their collateral fixed time limit Together Deposit Insurance Guarantee. Others have them placed in riskier assets, such as corporate bonds and sovereign securities, among others. “A decline in the price of the underlying asset affects the 1:1 parity, and therefore the stability of the price,” Bruno warned.

2. Hybrid Collateral

Prime example is DAI, which holds deposits in fiat money and digital currencies. So it’s guaranteed Ethereum, Bitcoin and more stable coins, In the form of USDC or USDT. The latter give it a “hybrid” character and, in turn, are backed by dollars.

consequently, inherited risk factorsAlthough white paper Of ICD indicates that there is overcollateralization (More than $1 per DAI) Multiplier to generate more trust.

Furthermore, convertibility can be threatened by technical error or poor governance practices, since there is no company behind it.But the independent autonomous organization MakerDAO, it allows DAI is decentralizedYour The blockchain is public and every user can Check how many coins are in circulation Every moment.

3. Algorithm

best known astof ecosystem Terra, which lost its parity a year ago And apart from keeping the crypto world in check, led to the bifurcation of the network. Its operation is based on an issuing algorithm and coin redemption: for each UST created US$1 of LUNA withdrawn from circulation (native Terra cryptocurrency) and vice versa.

Backing is not fiat currency but other cryptocurrencies with prices that depend on demand For use in decentralized finance (DeFi)as well as maintaining its own value stablecoin, In these cases, a drop in usage Of stable coins and the backing coin – as happened with LUNA – a collapse,

,time showed they are not durable: While the demand for stablecoins increases, they work well; when it falls they lose peg and everyone money“, points out Carzuza.

4. Crypto Collateral

in this matter, He have backup other digital currenciesas a matter of Doctorcollateral in Bitcoin,

,they are decentralized and therefore faultless. Since the entire solution and business rules are self-contained in the blockchain, no counterparty risk, no one can take the money, Plus, the collateral is auditable in real time,” says Carzuza.

And he comments that having more amount in reserves than in circulation, “The result of a run is that the level of overcollateralization increases, making them even more more solid,

However, Carzuza u exists black Swan: “that he bitcoin crashed and is worth zero, or a design flaw in the smart contract, although this last risk is borne by all”.