We see a lot of discussion of late about stablecoins. Whether algorithmic stablecoins is the answer remains to be seen. However, whatever the form they take on, it is crucial they be tied to the USD.
In this video I discuss how many misunderstand what gives the USD value and how it is basically too powerful to replace. There is organic value based upon use case. Plus, when we look at the totality of the global monetary system, we see how the biggest asset the USD has going for it is the unit of account.
▶️ 3Speak
Tether came out with their gold pegged coin a couple of years ago and PAXG did the same thing. It's good to have that as a hedge if you want to be exposed to the price of gold without having to pay the physical premium that is being charged today.
They just aren't extremely popular, but it's nice if you want to trade those assets outside of the traditional markets.
The USD is what everything in the world is measured against, which is very hard to replace. And I don’t see it happen anytime soon. So, it is indeed important to tie things or coins to the USD, or measure it against it, like we do with Bitcoin, when it comes to alt coins.
A stable coin tied to the Australian Dollar would make no sense and wouldn’t get traction imo
It might work in local or regional capacity but the problem is crypto is internet which is global in nature.
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First story about Luna collapse I read, said Blackrock made a deal with Do Kwon and then dumped all the assets they had agreed to HODL. RatFink LARRY
Thanks a lot asshole
There are reports to that path. So it is shady at best.
But then that is how those people operate. We know they go after whatever will make them money, no matter how shady the deal.
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Larry RatFink is an f'ing Globalist
I completely agree and stablecoins will be sticking around until the value of items starts being accepted as something other than fiat. It's the world's reserve currency and anyone can figure out the value by comparing it to the dollar.
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A stable coin is not just about pegging to USD, by and large, the adoption is also tied to a Stablecoin. How good the pegging mechanism is, one thing, but the moment you think to change it or use a different peg might prove to be a setback in the context of onboarding the users from the traditional market.
Stablecoin is also an instrument to bridge the crypto and traditional market, unless the world starts accepting a different form of currency to manage their day-to-day finances, it would be futile to think about any other option. The way forward at the moment should be to look for the best possible pegging mechanism. As such this is also not a problem, the major problem is manipulation, fake minting of coins to push the market, and not being transparent when it comes to accountability. So the crypto community should fix these issues to keep Stablecoins in good standing with the Crypto ecosystem.
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It is very important to have Stablecoins in the markets since for investors with a certain degree of caution it is great and everything to be much safer that Stablecoin must be backed by the same amount of USD and avoid the problems that we have seen in recent days.
Agreed. The dollar is the worlds reserve currency, and the U.S. probably the worlds strongest or biggest economy. Stablecoins tied to the dollar seem pretty natural in traditional finance.
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