Stablecoins could be Crypto’s True Killer application
During the crypto hype bubble and the meteoric rise of Bitcoin, speculation went crazy due to the incredible potential that emerging technology could bring to the world, if only technology could find its “killer app” “killer app”, something that makes Technology is an essential addition to daily life.
While a clear killer application never came, there is increasing evidence that stable currencies can be and that in the long run they could be harmful to Bitcoin and other cryptocurrencies.
The Crypto Killer application could arise from Stablecoin Arms Race
Throughout the young history of the cryptocurrency industry, the whole story has been predominantly about Bitcoin and its unstoppable development or increase. The cryptocurrency took the world by storm at the end of 2017, when it went from being relatively unknown to the advice of retail investors everywhere.
FOMO raised the price of the crypto asset to $ 20,000, but the bubble finally exploded when the Bitcoin network stagnated, showing signs that the technology was not yet ready for the exuberant expectations that speculators dreamed.
This year, the price of Bitcoin recovered once again and went to a parabolic rally. It was not until Facebook debuted with its stable currency cryptocurrency Libra that the Bitcoin rally overcame it, sending the leading cryptocurrency by market capitalization to a downtrend.
Since then, Bitcoin has been demonized by government officials and regulators, and even the president of the United States, Donald Trump, opposed the cryptocurrency and the Facebook Pound.
Stablecoin trading volume outshines Bitcoin
The appearance of Libra, however, amplified the arms race that takes place between stable currencies. Libra itself is designed to be a stable currency, linked to the dollar to provide stable prices to the holders of the asset.
The notorious cryptocurrency volatility is due to the speculative nature of the asset class, and because the asset is not linked to other assets such as fiat currencies, gold or real estate. Stabelcoins eliminated volatility, but still retains the utility and speed that Bitcoin and other cryptocurrencies provide.
Tether was launched for the first time many years ago, but today it dominates the volume of Bitcoin operations, which shows that stable currencies are not only here to stay, but can be a more important factor in the encryption market of what was originally thought. Tether and other stable currencies were first used as a flight to security during mass sales, but since then they have become a way of storing value, moving capital and, due to price stability, they are generally more reliable. that bitcoin.
With an infamous Tether for his bleak business practices, the stablecoincoin market leader faces additional competition such as Paxos Standard, USDC and many more. Even world leaders are realizing the disruptive nature of the stable currency market, which could have a great impact on the financial sector more than Bitcoin.
Unfortunately, the recent downward trend and Bitcoin problems may be due to investors slowly realizing that Bitcoin is not necessary to store value or move capital digitally, and those purposes are often much better for stable currencies than The first cryptocurrency
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.