The Crypto space is growing day by day and new use cases are appearing enriching the blockchain utility. But as we move forward at high speed and with remarkable returns (even if there is high volatility), one could ask himself why we need stablecoins in the crypto ecosystem. At a first glance, the immediate benefits of stablecoins would be to have the speed and flexibility of crypto, but removing the high volatility and anchoring it with real-world assets to ensure their peg. Stablecoins became a need in every corner of the crypto world, whether it is a DeFi solution or even a blockchain game.
The first utility that crosses my mind when thinking of stablecoins is the one of lending in DeFi. With rates lower than fiat, while pegged to it, the stablecoins offer more fair lending when in need. In addition to this, they act as a hedging instrument in poor or developing countries against hyperinflation. In bear markets like the ones we are traversing now, they can be a good investment as they don't have high volatility (well, maybe a little, but the pegging mechanism should get them back in line). I simply need to specify the Hive Dollar (HBD) stablecoin on the Hive blockchain which is an algo stablecoin pegged to Hive (and not Dollar!) which offers nice opportunities to grab some profits when the peg gets broken (luckily so far on the upside of it).
Next, I am thinking that stablecoins are the perfect payroll and invoicing instruments as they hold their value pegged. Volatility doesn't or shouldn't affect them and this way any due can be paid from the funds reserved for this purpose. I simply cannot imagine a portfolio or business working without stablecoins as it would be flying otherwise according to the market weather which could break anyone in a blink of an eye.
Stablecoins are also good remittances as they have low fees when transferring from one to the other. For example within the Hive blockchain the Hive Dollar (HBD) stablecoin transfers are feeless, what more could you want? And having stablecoins allows great flexibility to move funds, pay, send or transfer regardless of the market conditions.
I cannot imagine today a crypto space without stablecoins, even if we witnessed some failed projects like the Terra LUNA / UST. Their utility is proven and every blockchain sooner or later implements a native stablecoin or pairs its assets with one generally accepted. It is clear that stablecoins are here to stay and support new use cases of their own, but also paired with other crypto assets. Any portfolio should have stablecoins and be used to balance it whether it is a bear or bull market.