Cryptocurrencies and the concept of decentralization is a fairly new one that has so far proven to have some ways to solve some o man's problems with trust-based systems. However, cryptocurrency is a double-edged sword and one of the biggest problems we have yet is the volatility of assets value.
You see, cryptocurrencies still rely on their representative value in Fiat currencies, notably the USD to be regarded as meaningful. So, within the past 3 years, we've seen several "Stable coins" that are pegged to the USD to help individuals hedge and store value, regardless of the price trend of the market. But i think stablecoins that are pegged to the USD expose cryptocurrencies to the flaws of the USD. Sure the USD has held up a pretty stable value for a long time now, but from a perspective of decentralization, USD is centralized and control by the Feds. Hence, it puts the whole idea of building trustless and non-controllable digital assets to be pointless, since we have to depend on USD for market value.
I found a whole series and a particularly amazing article by @edicted on here that broaches this subject in a very logical and easy-to-understand way. The post also puts forth a few suggestions that are visionary. What if 1 BTC is always equal to 1BTC in real value? What if we develop a stablecoin that is not dependent on the value of the USD, but on some agreed-upon worldwide universal price index? Say, we call this price index the "Cost of Living Price Index", and then decide to call the developed stablecoin "X", then, a single X stablecoin would be equal to 1 Cost of living Price Index, rather than the USD.
What if the said stablecoin is self-regulated and can control inflation and price spike rather than depending on a central group of people? These are golden ideas worth discussing and reading about, and I do not feel I really do justice to the topic as the author did. At first, you might want to back up to the start of the series on Stablecoins to get a full grasp of the articles.
Happy reading, Pan.