BTC will never be less volatile.
It's quite clear to me that DEFI will create a superior coin.
One that actually has elasticity and exponentially larger liquidity pools.
One with much better tools than central banks.
Directly owned by the community itself.
This model will be copied a thousand times over.
Bitcoin will stand in the background as a beacon of security.
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I was thinking over a longer time span when BTC might be more stable. You're right about DEFI creating a superior coin as specific features can be engineered. I agree that algorithmic-based stablecoins are much more efficient.
I was more wondering about the stability of USD backed stablecoins (collateralized off-chain). In terms of these stablecoins being backed by another currency, what sort of hard currency would you suggest? A precious metal? A basket of tokens/currencies?
stable prices are a lie by design.
Central banks 2 goals = max employment, stable prices.
What does it mean? By nature, it isn't.