Subnostr

A currency must maintain a stable exchange value against the goods and services of the economy in order to be useful as a medium of exchange.

To do so, it must be in demand.

Do we need stablecoins in the crypto space?

No, they are a simplification to sustain the current Blockchain industry model for DeFi and product payments.

This model, with stablecoins perpetuates the current system and leads us straight to banking 3.0.

The solution is the use of cryptocurrencies in a parallel economy, the counter economy, in which the demand for crypto money unrelated to fiat money generates its own quote against market goods and services.

Could this counter-economic model be massive?

I don't think so, but if cryptocurrencies are used in it they will have price stability against the products in that economic system.

Counter-economics is a niche market, you don't have to be in it all the time, I'm not suggesting you live a marginal life. Got it?

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Discussion

goatmeal 1y ago

I don't like this chicken and egg problem. I never totally bought into the narrative that if we attract enough agorism onto a basic crypto asset then eventually it will become stable. it's possible to make a stablecoin that isn't pegged to a government currency at all and that would be valuable for electronic commerce. maybe this type of stablecoin shouldn't be called a stablecoin, it's very confusing. people think stablecoin means dollar peg. it doesn't have to be.