Stablecoins have been a breakthrough for crypto markets because they make it easier to get in and out of crypto. It gives us a reference with our local currencies. But I see two problems. On the one hand, the objective should be that Bitcoin is the reference and not fiat. On the other hand, we all fear that one day one of these stablecoins will disappear and create a huge credibility problem.
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I agree with you we should explore references other than the USD for stablecoins. I think Edicted wrote a nice piece on it some time ago. I'll try to find it
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I disagree. Bitcoin is much too volatile to be a pricing mechanism. Also, contrary to what the online gold bug economists believe, the USD is not going to collapse. It is still the standard which the world operates and will be for a long time.
Not HBD. That is onchain and no question of the ability to keep going regardless of what the regulators do. Plus there is no central entity behind it.
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"Bitcoin is much too volatile to be a pricing mechanism."
I do not agree if you are the reference, the volatiles are the rest. In the BTC-USD pair, Bitcoin is as volatile as dollar, which makes Bitcoin volatile with the rest of Fiat because they are all referenced to dollars.
Stablecoins will diappear when fiat currency disappear. Since stablecoins are programmable money, their pegs can be reprogrammed for the new environment. Unless the stablecoin is also a shitcoin, then it just goes away.
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Well all currencies eventually die off. It's part of history but fiat itself is still required since its what people are using right now. We might have to wait for countries to default first.
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