It is going to be Stablecoins, Not Bitcoin
![](data:image/svg+xml;utf-8,<svg xmlns="http://www.w3.org/2000/svg" width="1080" height="620" />)
I agree with everyone that Bitcoin is digital gold and a store of value, but let's be honest, Bitcoin cannot compete with stablecoins when it comes to adoption as a payment method. It is not just about the volatility, nor because of its low scalability. The lightning network is already out to solve the scalability issue.
My argument is coming firstly from the receiver and the sender route of exchange. There will be an extra cost for both using Bitcoin as a payment method. First, the sender will pay additional fees. He will pay transaction fees and he "may" also pay conversion fees as most companies that accept not just Bitcoin but any volatile coin charge an extra fee.
The receiver will also be facing some conversion fees if he is the one handling the conversion, and an extra cost if a company handles it for him. Even though he might get most of the fees from the sender, he is still not free from losses that may come from volatility. A minute is enough to turn $20 to $17.
The second reason can be attributed to the fact that despite Bitcoin being referred to as a store of value, it is not technically a store of value. At some time, people will see profits for their Bitcoin holding and will need to take out profits. Certainly, they will rush to stablecoins. This allows everyone to have the profit safe from volatility and to be able to buy more assets when the price retraces. Again, people still need a non-volatile asset where they will store their funds. Having the funds there enables them to spend it any time without worrying about volatility. This is not possible with Bitcoin because of its volatility.
Another general reason is the fact that stablecoins were introduced into the ecosystem to balance the effect of crypto volatility and provide a route to every crypto asset out there. The only challenge with Stablecoins is the possibility of a depeg. With the UST depeg and the earlier issues with USDC, people no longer trust stablecoins and you won't blame them for that.
It is also what makes Bitcoin the boss because the worst-case scenario is a price fall, which will still recover within time.
What am I trying to say here?
Of course, no one buys Stablecoin to hodl. Its lack of volatility makes it less of a good investment option. My point is that stablecoins will play a vital role when Cryptocurrencies are fully accepted globally as payment methods.
22 comments