RE: Are algorithmic stablecoins dead?
Your point about "parallel running financial systems" is very important. As long as people have options, they are free to go with what works best for them. This is one reason why legal tender laws are actually bad for a society. It also places a check on the centralized system since it lets The People make sure there is no funny business taking place under the centralized financial system.
Stablecoins came into existence because people feared the volatility of Bitcoin and Ethereum. Part of that volatility is due to how prices are measured: usually in USD. Would price volatility exist when we compare cryptocurrencies on their own terms? Yes. Would that price volatility be as bad? We don't know yet. At worst, it would be as volatile as what exists in ForEx (fiat money trading against other fiat money). Crypto against fiat money or vice versa seems to make the volatility look worse than it really is. Or am I being naive in this regard?
I'm asking because if fiat money disappears volatility may still exist between cryptocurencies, but would it be the kind of volatility we accept for markets such as ForEx? And if this is the case, would the need for stablecoins themselves disappear along with the disappearing fiat currencies?
Posted Using LeoFinance Beta