Ecosystem Growth with Stablecoin

By wabinab | work_learning | 17 Apr 2022


In a previous article, one explained about how blockchain is not crypto investment. In fact, crypto investment, including cryptocurrency per se, is a subset of blockchain. The majority public is unwilling to take the risks of investment, but they could accept blockchain (if they even understand what "blockchain" means) without accepting the risks that comes with crypto investment. Introduce stablecoin, a (semi-)stable currency that does not oscillate with non-stable currency's ups and downs.

While non-stablecoin offers an investing opportunity for investors, the majority public favors security, stability, and assurance of a currency over volatility. With a stablecoin, the value does not change much, making their lives easier. One do not have to wait for the currency to go up before visiting the supermarket to buy a loaf of bread that cost 0.3 NEAR when cryptocurrency is down and 0.1 NEAR when it's up. Two parties can agree on trading at a certain value without worrying about coin value changes. One can easily sell an asset without changing its price automatically/ manually as the value of the selling currency changes. Stablecoin just makes life much much easier for trading.

P.S. One refrain from using crypto investors term like bullish and bearish, "wen" "moon???" etc that the majority public, including myself, don't understand. This article is for majority public to read, not limited to crypto investors.

Additionally, stablecoin provides the security assurances the majority public wants. Someone retiring knows that they have enough to pay for their rest of their lives if their currency is stable. Someone working for a job knows they're paid with a fixed value rather than a depreciation of their work as the currency value drops. Someone (well, most people) without sufficient attention to care about the currency volatility requires its stability so they can stop worrying about currency value and fulfill their roles with full attention. Stablecoin is a security anchor that assures its value do not change (much) over time.

Furthermore, holding stablecoin do not need KYC. While you might need to explain to the banks, money-issuers, or the authority where your money source from if they are in the banks (especially if the trading is a large sum of money); stablecoin hides identity. KYC means authority trying to control and invade others' privacy so those in control remains in control and those not in control never topples those in control; cryptocurrency allows identity-free trading, free forever! Of course, detectors could track down who owns which crypto wallet based on someone's behavior, hacking, or other means; but at least your assets aren't in someone else's control. What's your is yours. Of course, illegal traders may abuse cryptocurrency for trading drugs, weapons, any objects that brings harm to the general public; but it isn't a problem with cryptocurrency -- even fiat have these problems. Stablecoin allows holding a currency without verification and worrying about getting ban by authority from accessing their assets, for whatever reasons.

 

Conclusion

In conclusion, non-stablecoin isn't suitable for the majority. Trading is more viable with stablecoin and security and stability is more assured with stablecoin. Blockchain is never a privilege to crypto investors; it's for the general public. We cannot achieve mass adoption if what the majority wants: stability and security, is not assured. Having a stablecoin for easy trading with its linked non-stablecoin, people could accept the blockchain more. The majority public could enjoy the advantages the blockchain brings without worrying too much about risks. If you still worry about stablecoin collapsing, why not worry about fiat currency also collapsing one day, for whatever reason(s)?

 

(this article is first written in read.cash)

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wabinab
wabinab

Software and ML developer, writer, jack of most trades.


work_learning
work_learning

These are about "work" learning, whatever one considered as work (not what the society considered as work).

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