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No. Stablecoins only exist because fiat <-> crypto trading is a massive pain. Nobody wants to own stablecoins, they want easier transactions. And if the USD bec
by crote 1y ago
No. Stablecoins only exist because fiat <-> crypto trading is a massive pain. Nobody wants to own stablecoins, they want easier transactions. And if the USD becomes less popular, people will switch to, for example, EUR stablecoins - there's nothing special about the dollar here.
On top of that, transaction volume is meaningless. Those $27.6T could be $27.6T held in escrow being traded once, or $1 held in escrow being traded 26.6 trillion times. You can't derive USD demand from transaction volume.
- justanotheratom 1y agoYou can certainly estimate the amound of USD held as StableCoin Collateral: "The total market capitalization of USD-pegged stablecoins exceeds $220 billion, with over 99% backed by fiat currencies, predominantly the U.S. dollar." https://chatgpt.com/share/681e95fe-4308-8008-ab25-61be94a41893 https://chatgpt.com/share/681e95fe-4308-8008-ab25-61be94a418... RE: Nobody wants to own stablecoins, they want easier transactions. Agree but that does not mean anything. Stablecoins seem to be solving a problem, and there is not evidence of any traction by any currency other than USD. So this phenomenon definitely runs counter to the conventional intellectual wisdom that USD is in decline.
- EnPissant 1y agoI thought tax evasion was the use case for stablecoins.
- justanotheratom 1y agoTax evasion could certainly be a use case until govt's sort out the implications. But the lasting use case I think is - fast and cheap transfer of money, anywhere. Disclaimer: I have never used stablecoins myself.