I've said it before and I'll say it again, stablecoins are shitcoins, the entire point of bitcoin was to get away from fiat currencies, so digitising the thing you want to get away from and bringing it full circle makes very little sense, and the cheerleading around it even less so.
I have been here for a while so I've seen all the bullshit narrative games being played, when ETH and its it's copycats were launched it was all about how they are better than bitcoin and fiat.
Why you should use them instead and when people piled in and bitcoin's price eventually reverted, liqudiy was drained and people were locked into positions while the shitcoin owners couldn't drip out their make believe tokens as they would like to extend runway and line their pockets.
As I have said in previous posts stablecoins like USDT were created to help capital flow between exchanges and set up non-btc markets to help traders with liquidity and create more efficient markets.
Eventually this was picked up by shitcoin chains as a way to lock more value in their chain and recycle it.
Trying to hold on to liquidity
Instead of repeating the 90% draw downs of previous cycles, shitcoins offered stablecoins, be that issued or make believe algo unbacked coins, to give people the sense that they can remain in the ecosystems but offset the risk.
Instead of leaving shitcoins for bitcoin or fiat like they did in the past, shitcoins looked to secure the captial themselves by offering you an alternative coin backed by their first coin or to clip fees off the transfer to the stablecoin.
It keeps you within the cycle of abuse as you still lose purchasing power regardless of which asset your in versus bitcoin, but very few realise the opporunity cost.
Piggybacking on dollar dominance
The second reason the stablecoin market is so popular is because it's piggybacking off of the cleanest shirt in the dirty hamper. The dollar while devaluing long term, appreciates against other fiat currency creating a loop where people would want to trade their local currency for dollars instead.
Getting your hand on dollars is easier said than done in many countries, and providing these hybrid eurodollars has been a great way to exploit developing markets once again, selling them a faulty bill of goods.
Unsuspecting cannon fodder
What really makes me sad is when I see African, Latin American and Asian people of modest means like myself ropped into these systems. Thinking they're getting dollar exposure when they're only carrying deritivie risk on top of a house of cards.
Yes I understand the dollar is better than our native shitcoin currencies, but it's not a real solution, you're just trading risk unbacked value for the sovreing default your country is most likely to face.
I totally get that, but what the issue for me is that these citizens have been so abused by their own currency, they're willing to jump ship to a new abuser. Your government has had their forearm up your arse ripping out your insides now someone comes along and says i'll only shove my hand in and i'll lube it up slightly.
And people are like sold! And continue to bend over not realising it's the same game being played.
What's even worse is they'll defend this abuse, in a sort of shitcoiner stockholm syndrome.
Have your say
What do you good people of HIVE think?
So have at it my Jessies! If you don't have something to comment, "I am a Jessie."
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