Pay Attention to Stablecoins!

in voilk •  7 days ago

    The cryptocurrency market is a highly speculative space, a fact we've all witnessed over the years. We've seen countless coins rally from a few cents to hundreds of dollars within a few months, only to plummet back to zero. The path from obscurity to success is seldom linear.

    Very few realize or pay attention to the fact that one currency changes hands numerous times from its launch to its latest all-time high. In fact, making generational wealth in crypto seems simple "in hindsight," but the journey is far from straightforward.

    What I'm trying to convey with this introduction is that the multitude of coins in existence are constantly traded, yet very few end up being used as exchange currencies or payment options. We call them currencies, but in reality, they're mostly speculative assets rather than digital cash.

    There are a few merchants worldwide willing to accept Bitcoin for various products, but who is actually inclined to spend Bitcoin or almost any other crypto on everyday items like toilet paper or bread? Hence, we lack practical utility for crypto.

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    However, the crypto world has evolved beyond mere speculation on "magic internet money," and we'll soon see an unprecedented demand for stablecoins as mass adoption grows. I've been using stablecoins via a crypto card for years, but I've yet to make direct payments in crypto. Perhaps in a few years, this will be possible, but I bet they won't allow HBD (Hive Backed Dollar) for this purpose since it's uncontrolled, and they prefer stablecoins like USDT or USDC.

    USDT is the ideal choice in this regard, as it's highly centralized and controllable. In the EU, MiCA regulations have pushed many regulated exchanges to ditch USDT for not being compliant. USDT is not fully backed by USD, which caused issues for some EU-regulated exchanges to continue supporting USDT.

    The demand for stablecoins will arise from sanctioned countries that need to trade internationally, like Russia. Russia recently announced plans to use stablecoins in its international trades.

    Like USDT, Russia will likely opt for stablecoins that can be regulated by its government. Considering the currency wars we're witnessing, I predict that in a decade, we'll have a plethora of stablecoins to choose from, backed by various assets or commodities.

    We haven't seen significant innovation in money for a while, and we need diversification. Fortunately, on Hive, we have HBD, which is relatively stable and can't be frozen or controlled. As we approach the US election, and with Trump's newfound pro-crypto stance, we might see a crypto boom in 2024. Keep an eye on stablecoins, as they'll likely find use cases beyond mere speculation.

    Thanks for your attention,
    Adrian

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