What If Told You, The So-called Stablecoins Aren't Stable At All.
572 sats \ 7 comments \ @hasherstacker 27 Jun bitcoin
When it comes to stablecoins, they claim to maintain stability by pegging their value to fiat currency. However, we all know how very unreliable fiat is. Just look at how the value of the dollar can fluctuate based on various economic factors. So, is calling a shitcoin that's pegged to fiat really the best way to ensure stability?
Let's consider an alternative - gold. Unlike fiat currency, gold has intrinsic value that is not dependent on any government or central bank. Throughout history, gold has been seen as a symbol of wealth and stability. Its value is not artificially inflated or deflated by government policies or economic conditions. So, if gold can maintain its value without being pegged to something else, why can't the people realize that there's Bitcoin, doing it much better?
Perhaps it's time for you to change your mindset of stability. Instead of relying on fiat currency, why not adopting Bitcoin, which, like gold, has proven to stand the test of time? By adopting Bitcoin, the users would be offered a more reliable store of value and avoid the pitfalls of fiat currency. It's time to think outside the box and redefine what it means to be truly stable.
Conclusion is, shitcoins, pegged to fiat, aren't stable in reality. Though people call and regard them as stablecoins.
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33 sats \ 0 replies \ @TNStacker 27 Jun
They are pegged to fiat shitcoins, not stablecoins. There is no stablecoins. There is real money, and then there is shit.
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0 sats \ 0 replies \ @DarthCoin 27 Jun
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0 sats \ 0 replies \ @ways_wilderness 27 Jun
Here in Asia gold is my stablecoin :-)
Got too much fiat sloshing around now, will get around to buying in again once I'm back from a week or so in Nepal!
Will also try to convert some of my Bitcoin to tangible gold once we approach the peak, that all depends on a myriad of factors and might well include some mysterious traveling haha
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0 sats \ 0 replies \ @IamSINGLE 27 Jun
Why did we leave gold as currency? Was it due to the problem of demand and supply? Or, it was because gold couldn't scale as currency for increasing population? You mentioned 'we need a change in mindset', I agree but do you think that Bitcoin can scale as currency for the whole world?
The debate should be around stability vs volatility. How do you think Bitcoin will catch up when something that's valued 10k sats now, becomes 11k sats and then falls down to 9k sats.
In short, how would you print prices on products in Bitcoin standard?
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0 sats \ 1 reply \ @Coinsreporter 27 Jun
So, you mean if a coin is pegged to Bitcoin won't be a shitcoin then?
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0 sats \ 0 replies \ @hasherstacker OP 27 Jun
So, if gold can maintain its value without being pegged to something else, why can't the people realize that there's Bitcoin, doing it much better?
It's not about pegging something to something else, not even to Bitcoin. It's all about using Bitcoin as money. Just like gold was used as money.
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0 sats \ 0 replies \ @grayruby 27 Jun
There is also the fact that Circle was about to be insolvent due to Silicon Valley Bank collapse until they got bailed out by the government.
What happens to the stability of a stablecoin when the issuer is insolvent?
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