The linked article discussed how crypto is seeing the number of wallets with stablecoins nearing 100M (around 94M now). This is big news.
In this video I discuss how important this is for economic growth. By having the number of stablecoins expanding means we are seeing the potential to grow the cryptocurrency economy.
https://www.coinspeaker.com/stablecoin-adoption-surge-holders-100m/
▶️ 3Speak
Congratulations @taskmaster4450! You have completed the following achievement on the Hive blockchain And have been rewarded with New badge(s)
Your next target is to reach 74000 replies.
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPIt can only get better with technology, we open ourselves to a myriad of opportunities. The adoption of stable coin will continue to gain acceptance, and this is is a major breakthrough in the crypto space.
I would like to think that digital applications played a huge part for this. A lot of people purchase online, view their accounts on their phones, and pay with their cards or phones. Physical cash isn't as important as before. This made the introduction of stablecoins easier. Since they are pegged to a dollar, there isn't much difference from what they're used to. Add to that the different advantages it offers like protection from inflation, less fees compared to credit cards, and more control over the money.
Despite such growth, in my circle I still don't see anyone into crypto.
Summary:
The host discusses an article from CoinSpeaker that reports a 15% surge in stablecoin adoption, with the number of stablecoin holders nearing 100 million. While the article primarily focuses on stablecoins on Ethereum-based networks, the host notes that it likely does not capture the full picture, as it may not include algorithmic stablecoins on other blockchain platforms.
The host argues that stablecoins are the true "cryptocurrency" as they serve as a medium of exchange, unlike volatile cryptocurrencies that are better suited for trading and investment. He explains that for an economy to grow, it requires a stable medium of exchange to facilitate commerce, payments, and funding for new initiatives. Stablecoins, he believes, can provide this foundation for the crypto economy, enabling it to expand through various use cases, such as payments, funding, and derivatives.
The host emphasizes that stablecoins can create a global money supply outside the traditional banking system, allowing for network effects and utility-driven demand. He suggests an interesting correlation between locking up stablecoins for liquidity and staking, which he plans to explore in a future article.
Overall, the host argues that the growth of stablecoins is the key driver for the expansion of the crypto economy, rather than the performance of volatile cryptocurrencies like Bitcoin and Ethereum.
Detailed Analysis:
The host begins by discussing an article from CoinSpeaker that reports a 15% surge in stablecoin adoption, with the number of stablecoin holders nearing 100 million. He acknowledges that the article primarily focuses on stablecoins on Ethereum-based networks, such as USDT and USDC, but notes that it likely does not capture the full picture, as it may not include algorithmic stablecoins on other blockchain platforms like Cardano, EOS, or Bitshares.
The host then delves into the importance of stablecoins, arguing that they represent the true "cryptocurrency" as they serve as a medium of exchange, unlike volatile cryptocurrencies that are better suited for trading and investment. He distinguishes between a medium of exchange (currency) and a value capture token, explaining that the latter is not an effective medium of exchange due to its volatility, which makes it unsuitable for widespread commercial adoption.
The host then draws a parallel between the need for money in a business context and the need for money in an economy. He explains that for a business to grow, it requires capital to expand its operations, hire more employees, and develop new products and services. Similarly, for an economy to grow, it needs a stable medium of exchange to facilitate commerce, payments, and funding for new initiatives.
The host argues that stablecoins can provide this foundation for the crypto economy, enabling it to expand through various use cases. Firstly, stablecoins can serve as a medium of exchange for payments, addressing the shortcomings of volatile cryptocurrencies in this regard. Secondly, stablecoins can provide funding for infrastructure, applications, and other crypto-related initiatives, ultimately driving the growth of the crypto economy. Thirdly, stablecoins can be used in derivatives, which the host believes can be valuable for hedging and transferring value, rather than just for leveraging.
The host also suggests that stablecoins can create a global money supply outside the traditional banking system, allowing for network effects and utility-driven demand. He notes an interesting correlation between locking up stablecoins for liquidity and staking, which he plans to explore in a future article.
In conclusion, the host argues that the growth of stablecoins is the key driver for the expansion of the crypto economy, rather than the performance of volatile cryptocurrencies like Bitcoin and Ethereum. He emphasizes that stablecoins are the true "cryptocurrency" that can facilitate commerce, payments, funding, and other essential functions for the crypto ecosystem to thrive.