Many people, including me, wonder if cryptocurrency is the future of money. However, I have read a few articles from Entrepreneur and Ethereum World News, which suggest that stablecoins are rather the future of cryptocurrency, and money as well. The following are some of the opinions the authors of the articles mentioned to prove their point.
But first, let’s understand what stablecoins are in brief. According to Polites from CNN, “stablecoins are digital tokens (much like Bitcoin and Litecoin) that are intended to provide measurable stability and security.”
According to Medal from Entrepreneur, “stablecoins are hybrid cryptocurrencies because they are blockchain based units that are also backed by fiat currencies or commodities, which is why they provide the benefits of both crypto and fiat currencies.” Therefore, stablecoins are most likely to be the future of money because it’s easy to influence people to use a currency that is run by the government or some sort of central bank.
In addition to stablecoins being a hybrid of cryptocurrencies, Medal mentions that “stablecoins enable merchants and consumers to rely on balanced prices that are not affected by the high volatility of the crypto market.” According to Medal, again, cryptocurrency has lost 80% of its value since its beginning to this day. Therefore, if the value of stablecoins is not or less affected by the rapid change in the crypto market, it’s very likely that stablecoins can be trusted to replace money.
Another author, Lavere from Ethereum World News, mentions that “stablecoins can likely fill the void needed for a price-stable coin to ignite commonplace crypto transactions, particularly in small, daily purchases.” Most people assume that Bitcoin and other altcoins are used by very rich or sophisticated people buying very expensive goods. Therefore, if stablecoins are able to prove that they can be used for common, small purchases, people are likely to get comfortable using them daily.
I am excited to learn more about stablecoins because it seems like they are simple, stable, and promising. They are very advanced in terms of technology which people are now more interested in. So who knows? Will stablecoins replace money? Please comment below to let me know what you think.
Lavere, M. (2018). How Bitcoin AND Stablecoins Can Dominate the Future of Cryptocurrency. Ethereum World News.
Medal, A. (2018). Stablecoins, Rather Than Cryptocurrencies, Might Be the Future of Money. Entrepreneur.
Orlicki, J. (2018). The Return of the Stable Coins. CoinFabrik Blog.
Polites, J. (2018). What Are Stablecoins and Why Are They Poised to Impact the Crypto-Economy? CNN.
Rouse, M. (2017). Altcoin. WhatIs.com via TechTarget.