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.
Discussion
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.
Most of them have depegged I think. Flawed algorithms 😂 https://cointelegraph.com/learn/algorithmic-vs-collateralized-stablecoins
Funny how it always comes apart upon close examination.
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.