[fooyc]

My understanding is that people don't invest in stable coins (like you don't invest in USD when you have USD on your brokerage account).

Stable coins can be exchanged against other crypto currencies on chain. So if you are willing to trade crypto currencies, stable coins are more practical than USD.

There are also tax implications: Depending on where you live, crypto-to-crypto profits are not taxable. You will be taxed if you sell crypto currencies for USD, but not if you sell crypto currencies for a stable coin.

[whimsicalism]

> There are also tax implications: Depending on where you live, crypto-to-crypto profits are not taxable. You will be taxed if you sell crypto currencies for USD, but not if you sell crypto currencies for a stable coin.

At least in the US, this is not true.

e: Not sure why I'm downvoted - crypto to crypto conversions are taxable in the US.

[criddell]

> You will be taxed if you sell crypto currencies for USD, but not if you sell crypto currencies for a stable coin.

Does that also mean if a stable coin fails you can't write off losses?

[fooyc]

If you sell stable coins for USD and make a loss, you can write it off.