Stablecoins have been a great investment for people looking for the benefits of blockchain while investing in currencies that hover near the dollar. The obvious reason most people stay away from stablecoins is that they just don’t bring enough profits in the short term. There is also inflation to consider, if the US dollar is inflating then so are the stablecoins holding their value at $1 which takes away from the decentralized finance goal. The disdain of the US dollar will seemingly drag down stablecoins. The volatility is scary but that’s what increases the thrill, it’s a high-risk high-reward game after all. If by chance the top Cryptos crash for whatever reason only then do stablecoins have a chance of becoming more conventional.
As cryptocurrencies are relatively new, it is hard to take into account any factors that could hold their value down for a long time. The way traditional Cryptos work is by skyrocketing and then going down where we buy a ton in hopes that it goes up again. If a Crypto like Bitcoin attains stability, at let’s say $36,000, it is impossible for common people to get access to even one Bitcoin. You also have to keep in mind that Cryptocurrencies are limited by nature. This means that for the survivability of cryptos, they have to maintain this rollercoaster. I think considering a way for more people to be included without the value of suffering is something that should be taken into account.
Banks have certainly celebrated the Crypto crash whenever it happens but recently, they have changed their opinion. CBDCs or Central bank digital currency is their way of getting on the train of cryptocurrencies. These currencies are centralized, unlike standard cryptos. The idea behind CBDC comes off as just a way to get everyone by saying digital currency while basically keeping the same framework of fiat currencies. Although only China has come up with its own form of CBDC. Banks have maintained a negative or neutral opinion of cryptocurrencies from the beginning even when put up with devastating conditions like the pandemic. The resolve to not let people use cryptocurrencies during grueling conditions of a pandemic is disappointing.