Is “stablecoin” the peer-to-peer cryptocurrency described in Satoshi’s white paper?
We should not argue with personal opinion, but look at the actual numbers from the market that show the number of stablecoin transactions is still the highest, the market says it's what they need to use as a means of payment.
If anyone has ever read the white paper written by Satoshi Nakamoto to announce bitcoin through the preface "Bitcoin - peer-to-peer cash system", with the belief that people can transfer money directly to each other without trusting a financial institution or third party.
Since its inception, bitcoin has been used for that, you can transfer bitcoins from person to person, country to country, time frame to time frame. All of those transactions are verified by the bitcoin blockchain network and completed correctly without the need for a third-party intermediary, but after decades of presence, with tremendous support from the community then gradually the market perceives bitcoin as becoming more of a store of value (SoV) than the function Satoshi mentioned in the white paper as a peer-to-peer electronic cash system (Peer-to-Peer Electronic Cash System).
Bitcoin Cash (BCH) is a coin forked from the Bitcoin Blockchain on August 1, 2017, under a huge internal conflict in the bitcoin community, one side wants bitcoin to be a store of value, the other wants to follow what is written in the white paper. And that's why there's been a lot of fork in addition to bitcoin cash, due to the conflicting opinions of the community about what bitcoin should be.
Screenshots web: Remitano
Acceptance from the market is more important than the view of the development community, the market has accepted, and gradually see Bitcoin as a valuable repository and often compared in a very easy to understand as "electronic gold", has the advantage of storing gold's value but adding many other outstanding features such as faster, safer and many times smarter. And I also see that as the way to help bitcoin grow fastest and strongest with the consistency of community trust for it.
Bitcoin cash was born with the mission to become the peer-to-peer electronic currency system as the white paper claims, but it seems the market over the past few years has proven it is not really successful in that role.
The market has shown that they really need short-term price stability rather than drastic price fluctuations when used for payments and currency transfers. As of now, the market capitalization of BCH is only about $13 billion and the total 24-hour trading volume is $4.5 billion. With these modest numbers, it is very difficult and takes a long time for BCH to fulfill its mission.
The total capitalization of the four largest stablecoins in the market is currently close to $100 billion, and USDT's 24-hour trading volume alone is more than 130 billion. There isn't a single coin that has more and more trading volume than these stablecoins, is it proving to be the peer-to-peer cryptocurrency described in the white paper by Satoshi?
Many readers here wonder why Satoshi created bitcoin so that people can trade currencies between individuals freely, highly decentralized, and not controlled or prevented by anyone financial institution, when returning to a monetary system that is centralized and tied to the control of fiat money? but now that we use stable coins pegged to the value of the US dollar, are we going backwards in this revolution?
Another view of stablecoins
Yes, stablecoins are highly “centralized” because they are pegged to fiat currency and subject to government audits. But its ability allows us to send the most "strong" and "powerful" currency, the US dollar, around the world to anyone without having to KYC with the bank or any permission from them, is that the simplest and least centralized way compared to other methods when you want to send fiat currencies around the world.
The community has accepted the price stability of stablecoins is more important than the price volatility but decentralized of bitcoin cash or bitcoin or any other coin, that is very clearly demonstrated by the trading volume of USDT .
Currently, the main rival of bitcoin cash is stablecoins, not BTC anymore. However, the BCH community itself always wants to compare themselves to BTC when BTC has long since gradually formed another function, a safe place and store of value.
Stablecoin is centralized and controversial, but the great thing is that it is providing access to billions of people around the world who can join and use the global reserve currency of the US dollar. In many countries you may be banned from trading in dollars but everyday you are still using USDT to exchange payments and buy other coins, it's a more liberal revolution about people around the world, especially in remote African countries, where their local fiat currency is almost insanely inflated, they can still store their purchasing power in USDT, BTC, ETH... and move it around the world, something they would have been hard pressed to do with the traditional banking system with its associated regulatory constraints.
We should not argue with personal opinion, but look at the actual numbers from the market that show the number of stablecoin transactions is still the highest, the market says it's what they need to use as a means of payment.
Winner takes all
A coin that wins and reaches the highest capitalization by monopolizing a specific use case, like SoV for bitcoin and peer-to-peer crypto for stablecoins, such as Facebook has won the use case for social networking, Youtube has won for the video market, Apple has won in the mobile space, Google is the leader in search, and Tesla is the pioneer in electric car race ... All the winners will suck the most valuable part of the market and be giants in their field.
That's why people often make future price predictions for bitcoin because they have something to compare and anchor it to, if bitcoin wins in the case of a store of value, what is its capitalization? Looking at the capitalization of gold, you can guess already, and not only that, bitcoin also has many valuable features that are many times superior to gold, so the $11 trillion market cap is the lowest we can expect when bitcoin wins.
#hive-198626 #hive-111825 #hive-101145 #hive-182275 #creativecoin
I believe that if the stablecoin use case as a peer-to-peer electronic cash system is successful, it will become a trillion dollar asset, maybe even bigger than Bitcoin's SoV use case, because the market capitalization of money circulating outside the market is much larger than the capitalization of gold.
What can we draw?
Real-time market observations reveal what successful use cases will take that coin's market cap to trillions of dollars in the future, we could call it fundamental analysis, and based on that it shows us the potential value of what we invest, so you're going to ask, it's a stablecoin so how can we invest in it, yes, we will not invest in stablecoins but we will invest in the network that contains those stablecoins!
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