We have gotten to that point where we are not scared of a ban on cryptocurrency. What we are looking out for is real-world use cases for cryptocurrency. Presently, we have seen the likes of Bitcoin and Dogecoin being accepted as payment methods by some institutions. A thing that proves that crypto is here to stay.
Amidst the anticipation of further adoption of more crypto assets as payment methods, I became concerned about the pros and cons of using a volatile crypto asset as a payment method. A few days ago, we celebrated Bitcoin Pizza Day and we reflected on the first real-world use case given to Bitcoin. Many judged the man who bought two Pizzas for 10k BTC as being reckless. Some felt that his action wasn't reckless because there isn't any point in having digital assets that can't be used for real-world needs.
For me, stable coins are the perfect crypto assets for offline transactions. This benefits both the spender and the receiver. When a volatile coin is used as a payment method, the receiver may not incur a loss because he converts the asset to a stable coin. Now, the spender has two possible aftermaths. It is either the assets he used for the payment increased in value above the price he made the payment on or it depreciates below the price at which he made the payment. Either way, it is GAMBLE. We can see this with the Bitcoin Pizza story where the spender paid 10k BTC ($41) only to see the value of what he spent some years ago skyrocket. The price movement could have gone the other way round and the receiver loses.
With a stable coin, what you give out is the true worth of the asset which can never depreciate or appreciate. BTC is currently being accepted as a payment method by some institutions. If offered the opportunity, I will likely turn it down. This is because BTC is a digital gold that will continue to appreciate. The 0.001 BTC I will spend today on a product can double in value in a year. I can spend other altcoins ( excluding Ether) for payments, not because they can't also appreciate in value but because you can't compare them as a store of value with Bitcoin.
The image was taken from here and edited by me on Canva
I just think of UST $0.10 value of stable coin.
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What happened to UST was a coordinated attack. We shouldn't write off stables because of that