Dog, do you edit your posts?? Nope
Remember late 2017 when everyone and their dog was talking about Bitcoin and Cryptocurrency. It no longer became this extreme niche market where only your tech savvy friends had even heard of Bitcoin let alone understand the crypto lingo.
[side chirp]
“But Dog, I have known about crypto since 2012”… sure you have Gubes..
As a side note: Even after the fall of Bitcoin, in summer 2018, the Vancouver hype machine was so transfixed on these absurd crypto gains that you weren’t convincing them why to buy your stock, you had to first convince them why not to buy crypto. Now that market is a bit different as it literally runs on hype. Nobody does their own research and will buy something because a friend of their friends aunt, was talking to their hairdresser and heard of somebody who made millions off of Dogecoin… and what do they do.. go home and buy it. Anybody remember the Vancouver Stock Exchange? The entire market was rattled with fraud and pump and dumps, literally the same reason.
[side chirp]
“Nobody does their own research”… coincidence it’s a Liberal strong hold?
Now the point of this article isn’t to rag on my Vancouver friends [Clam] or my liberal friends [slurps], but rather to provide some inside into the crypto market and a segue into a couple coins which present an opportunity for growth [a secondary article].
The first thing I would like to bring up is Stablecoins.
When people think crypto they instantly think volatility and that why would someone be so dumb as to buy something worth nothing.
This argument is instantly thrown out the window with Stablecoins. Stable coins are tied to an underlying something… typically your fiat currencies and move in relation to these. Hell, there is even though USDCoin.. it has remained at exactly par to the USD since its inception.
Beyond this there are Stable coins [beyond those tied directly to fiat currency], are investments in other underlying assets DAI stablecoin, which holds reserves of Ethereum contracts, or even coins tied to the bond market.
Your biggest volatility in stablecoins, as expected is coming from your underlying asset, and some larger potential issues which nobody quite knows the answer too, and how the stablecoin markets will handle mass bank runs or withdrawals and whether they will in fact.. be stable.
So what is
the point of stablecoins? You are basically garnering the benefits of the
blockchain, i.e. free capital flow and privacy, while ~eliminating~ the risk of
volatility.
Now the biggest thing that deters me from most stable coins.. is you end up
paying a premium over whatever the asset backing is. There has been a huge run of
gold cryptos, do the math, what happens is once you convert your asset value
back to USD you have in fact completely overpaid for the gold its backing. Now
perhaps this is a traditionalist view but come on now Wyatt, you took economics,
does this make sense when you step outside of your Silicon Valley thinking
bubble.
Now the biggest use going forward for stablecoins are going to be in the online markets. With the biggest opportunity being in third world countries with extremely difficult access to both capital and payment systems.
Avoid inflation on your countries inevitable currency demise –Venezuala, Argentina…by buying USDCoin in an instant without getting bent over at the exchange house.
And everyday adoption into apps that are common to you; think whatsapp coin, facebook coin, coins on your favourite gaming app, etc. Everyone app owner will turn their marketplace into an option to push their stablecoin.
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