The Stablecoin Paradox

Stablecoins are a type of cryptocurrency that are designed to keep the same value as a national currency. For example, one USDC is equal to 1 US Dollar. These stablecoins combine the benefits of cryptocurrency, such as decentralization and permissionless peer to peer exchange with the relative stability of fiat currencies.....or do they? Over the past month, even highly regarded stablecoins have experienced rapid swings in price. What do these price swings tell us about stablecoins, and is it possible to build a better stablecoin? The thesis of this video is that the concept of "stability" is a myth; a stablecoin that remains pegged to fiat will inherently be unstable with regards to purchasing power, and one that remains pegged to tangible assets will remain unstable with regards to fiat.