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25 sats \ 2 replies \ @paul OP 4 Aug 2022 \ parent \ on: Earners need stablestuff, hodlers don't bitcoin
Agreed that I'd rather receive payment in bitcoin vs a stablecoin. The issue here is, what do you do in between pay day and your rent being due?
If you don't have the savings to cover a drop in the bitcoin price, you may not be able to pay your bills. Stablestuff is a reasonable parking spot for a few weeks. Should people store long term savings in stablestuff? I wouldn't.
Until we have a circular economy where either bitcoin or a stablecoin can be spent, for most the funds will need to be converted into local fiat. My point was, if I am going to convert to fiat, I might as well take advantage of the premium available when selling on P2P trading platforms. And thus, to do that I'ld want the payment to me to be in bitcoin, otherwise I would need to first convert the stablecoin I receive into bitcoin before being able to sell the bitcoin.
There can also a premium available when selling stablecoins as well, for the same reason as there is a premium when selling bitcoin, but P2P trading platform have either no stablecoins supported (i.e., bitcoin only), or little liquidity and a mismatch between the stablecoin I received and the ones available on the platform I prefer to use.
I'm aware that this "cash out through P2P exchange" is not the typical use case, but I was just trying to make the point that hopefully it is the payment recipient who gets to choose: bitcoin or stablecoin.
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Thanks for providing the info about how you use p2p exchanges.
"hopefully it is the payment recipient who gets to choose: bitcoin or stablecoin."
We'll continue to pay in bitcoin at stak, but having a choice to be paid in a stablecoin would be a popular option in some countries.
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