Up until the LUNA crash, I was under impression that stable coins are the ultimate answer to crypto market volitility. I was wrong and here is how stable coins can take us a step forward.
A few months ago, I was thinking by myself that stable coins are the next big thing.
Every single piece of article on the subject was proposing the same premise.
While Bitcoin, Ethereum, Binance Coin, Cardano, and XRP (sort of) are great assets and have already been adopted very well among the crypto community, the volatile nature of these assets makes it very hard to adopt at the government and institutional level and as the result, mass adoption.
Let's face it.
I am looking forward to seeing a world in which cryptocurrency is the mainstream money.
However, with the current way of swings in the crypto economy, it is highly unlikely that we see Bitcoin or even Ethereum become the mainstream currency and can beat USD.
Let's have a look at the following stats to see where the cryptocurrency is:
I understand that everything is RED now and we are about to enter a recession.
However, having a look at the market cap of fortune 10 companies and comparing it with the cryptocurrency market cap will tell us that we are still in the early days of the crypto economy.
Today's Cryptocurrency Prices by Market Cap
The global crypto market cap is $957.12B, a 4.53% increase over the last day.
OK, now that we are established the fact that the crypto market is still in the early days and we are still far from mass adoption, we need to see what are the solutions that we can explore to make this happen.
USD will go soon
Let's face it.
No currency stays forever.
I remember back in the day the GBP used to be ab important currency. Now the world is evolved and EUR is not the dominant currency in Europe.
USD will be the same and no exception.
I personally believe that in the next 15 years, the USD will become weaker and it will be harder for them to compete with digital currencies.
Note that I did not say Bitcoin.
And that is intentional.
Let's see why.
Bitcoin is not the future
There I said it.
Bitcoin is an old 15 years old technology.
It is not efficient.
The project founder is gone missing for quite some time.
The fact that it is one of the early coins (tokens) gives it sentimental value for investors.
Also, there is no practical utility behind Bitcoin as well.
Let's face it.
If it was today, Bitcoin looked like a rug pull! Nobody really invested in it.
For all these reasons, I predict that BTC will slowly vanish in the next 20 years.
What coin will be the number one currency?
Yet to explore.
A stable coin is the long-term solution
The natural next evolution is centralized stable coins which are launched and governed by each country.
LUNA showed that tech developers are not the best people to lead the finance world and currency.
The attitude of Do Kwon after he was worth $40B changed a lot and that is not a leader the world deserves.
What I want to see is that traditional leaders (politicians and reserve banks) step up and lead regulations and governance of crypto before we see more and more LUNA crashes.
Also, having a military force behind a currency, will put another security behind the coin and make sure that we do not see crashes like this happen.
Now that is out of our system, want to know what you think about this.
Or simply share this on Twitter and get the conversation going.