If the dollar goes down in purchasing power do stable coins just go with it? Is it just stable in regard to the physical version?

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Yes.

Digital dollar = physical dollar

All trending to zero hand in hand

Agreed, just wrapping my head around how pointless they are exactly.

Stable coins are maintained with a peg. When enough people sell the stable coin the peg breaks. The issuer of the stable coin needs to maintain the peg with deposits.