Yes the stablecoins are pegged to some currency like USD. They're not their own currency. Why bother using them then when you can just use the original currency they're pegged to.
All else being the same the tech does matter, that's true, but the ambition of cryptocurrencies is (was?) not to be the same, so don't come arguing with stablecoins.
I only bring up stable coins because you mentioned that the primary issue was being able to stabilize the price, right? I personally don’t need a stable coin. I’m fine with just being more frugal if the coin has less inflation than, say, gold.
Btw, I said “differing means of various effectiveness” because they’re not all just pegged to an existing currency. You can have a stable coin that is just algorithmically stable to an arbitrary price even. I’m just saying, that is not the issue either.
What are they pegged to if not an existing currency? I only know Tether, Circle and the likes. Currencies like USD and EUR are some of the most stable currencies we have right now. A coin isn't stable unless it's pegged to that.
I know some are pegged to gold but gold is pretty unstable in the first place.
They're only as stable as the pegged currency. Like USD which could do better in terms of stability -- past, present and future -- as we all know. Show me one that's more stable and I'll drop my dollars instantly.
I think they’re usually pegged to USD as a common reference point that people understand. But it can theoretically be pegged to anything if it’s done algorithmically. I’m just saying, we have these things and that is not the issue. I think the technology still remains the limiting factor. The UX is worse than fiat in the worst ways.
Can I see the "algorithmic" one please. I'm interested in the algorithm.
Are you running a business? Do you have skills you are selling? Do you plan ahead financially?
If yes you care about stability, up or down either way.
I think businesses usually diversify their holdings regardless of what they use to transact right? But yeah I agree they would want to “cash out” a lot of crypto that they get. That’s why liquidity in the on/off ramps are essential. It’s the death knell of Monero sadly.
They hold in the currency that they have future payments coming up to minimize the risk. A business in USA will hold dollars, nothing else.
I think stables can be useful. If it's difficult to access USD where you're from and/or your local fiat is even more garbage. Or to avoid crypto volatility in short/medium term. Can also be more anonymous than digital fiat.
True that.
It's not the main selling point of Bitcoin though. Bitcoin wants to be more stable than USD.
Good luck with that.
I don’t think Bitcoin has ever claimed stability. What it has claimed is deflation instead of inflation. Where did they talk about stability?
Ah correct.
All this talk about stablecoins got me confused.
Still no idea why someone would want an unstable (deflationary = unstable downward) currency.
It would definitely make people more frugal / responsible with their money.
Many people consider deflationary currency as having profoundly positive moral effects on the economy writ large. For example, people are more frugal and thus are more prone to “buy it for life”. Companies start competing on who makes the longest lasting product instead of the trendy thing with planned obselesence. Etc
Frugal isn't the goal. Having a good life is the goal.
Of course you can never buy ice or go on vacation but that's not the world I want to live in.
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