i agree with you that stablecoin will ne important in the futute. the volumes look big/growing. latest data says $250 million. but it’s 97%+not a crypto investment - because almost 99% of it is “tethered” to fiat (mostly usd).
and of course it’s 98%+ not a gold/silver investment either
it’s really a kind of digital money market account that’’s delivered on the blockchain.(& the “stablecoin” branding, while clever, is a bit ambiguous because almost 99% of stablecoin is pegged to specific fiat currencies—-mostly usd—tho with no fdic insurance/backing. so first off there’s counterparty risk)
ie if tether (or whoever you use) goes bust, you go bust. just like a sad sack yongquin customer today
but right now there’s very little pm stablecoin—probably less than $2 bn gold backed and less than $200 million silver backed stablecoin. (my very rought estimates, nobody is publishing credible data)
so what will make that grow? will people use stablecoin as a convenient crypto investment platform? will it replace banks & paypal for global money transfer. maybe. & certainly convenient for people who want to trade crypto AND transfer cash globally. but they’re nowhere remotely near the typical stablecoin user right now….who is happy to be pegged to the usd. that said—tho i’d be happy to be proved wrong, i’m not expecting stablecoin to be fueling a move to $59 silver this year…
Enjoyed your and Jordan's discussion as always.
good post/presentation @VBL
i agree with you that stablecoin will ne important in the futute. the volumes look big/growing. latest data says $250 million. but it’s 97%+not a crypto investment - because almost 99% of it is “tethered” to fiat (mostly usd).
and of course it’s 98%+ not a gold/silver investment either
it’s really a kind of digital money market account that’’s delivered on the blockchain.(& the “stablecoin” branding, while clever, is a bit ambiguous because almost 99% of stablecoin is pegged to specific fiat currencies—-mostly usd—tho with no fdic insurance/backing. so first off there’s counterparty risk)
ie if tether (or whoever you use) goes bust, you go bust. just like a sad sack yongquin customer today
but right now there’s very little pm stablecoin—probably less than $2 bn gold backed and less than $200 million silver backed stablecoin. (my very rought estimates, nobody is publishing credible data)
so what will make that grow? will people use stablecoin as a convenient crypto investment platform? will it replace banks & paypal for global money transfer. maybe. & certainly convenient for people who want to trade crypto AND transfer cash globally. but they’re nowhere remotely near the typical stablecoin user right now….who is happy to be pegged to the usd. that said—tho i’d be happy to be proved wrong, i’m not expecting stablecoin to be fueling a move to $59 silver this year…