Stablecoins are on pace to become the new money market funds - Crypto L1s will live and die by demand for these coins
Investors will buy and hold them to earn a yield from the debt backing them
That "yield" is derived from fiat debt issuance and this system will grow even more rapidly than fiat debt
It will be called the next innovation of crypto
A crisis will emerge with stablecoins losing their peg - effectively "breaking the buck"
Nothing about this system will enable freedom
This is a super interesting theory. Your probability estimate on this unfolding within 3 years?
This is a super interesting theory. Your probability estimate on this unfolding within 3 years?
Yes I think it will come with the next cycle. As more stablecoins get issued by fintech incumbents the market will get more competitive and stablecoins will be forced to pass along the yield they’re capturing to remain competitive.
Long term I think these institutions could cross into the systemically important territory
So my Taro bags will pump, right?!
