A common question I often to get "which is better, depositing Stable coins and earning 10% APY or depositing BTC and earning 3%?"
More often than not; stable coins (such as USDC) pay significantly higher APY than BTC does in various defi or cefi platforms. This causes many people to wonder which is better to grow their wealth with. It seems like an almost no brain'r to go with the stable coin and high APY option, but then you lose out on the massive growth of BTC.
so I have started breaking down a recommendation plan for people. Firstly I tell them to figure out when they need this money and to go from there...
if they need the money within 30 days (for like food or bills), I tell them it would be best to just leave it in USD (fiat).
If they need the money within 3 years (i.e. maybe they plan on making a down payment on a large purchase) then i tell them that using stable coins to earn high APY would be a solid choice.
If they do not need the money for >3 years, then i let them know that there is no better option than Bitcoin.
And the biggest reason for this timeline separation?
Because of the Bitcoin 4 year halvening; generally no matter at what price you buy, if you wait 3-4 years, youll be in profit with holding BTC. Even if you buy nothing but tops.
Because of the painful short term volatility, if someone needs the fiat to meet a fixed cost in the near term, it would be better if they don't take the risk of BTC under performing.
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