The Rise Of Algorithmic Stablecoins

Even though the united states government is now ramping up major attacks vs crypto and not actully protecting investors it's clear their main goal now is to try and destroy crypto and make it illegal. The reason they are skirttail it and not out right saying it is because they are bound to the courts and laws and freedoms of the people to NOT be allowed to do such things thus they are using what they do have a mad tax heavy system that can issue fines and lawsuits against people and companies.

The big issue is these lawsuits are expensive and time consuming for people and many just pay the fine and move along. However many of these cases if they did go to court would be dismissed. The issue is the SEC has unlimited resources and lawyers to be able to attack on all of these fronts all paid for by the tax payer. Talk about a serious abuse of power that's happening right now here in the USA and you can see why people like myself are ultimately getting sick and angry about it.

A lot of this attacked seems to start happening when stable coins started to explode and be used for things like defi etc to remove banks and allow for peer to peer transactions. I know this because there are legit businesses that do peer to peer that constantly get attacked and shut down. I was in one that was legal for about 7 years earning roughly 10% APR like a bank would from loans only for them to come in and issue new laws and regulations that then made it harder for this company to do business and ultimately just stop allowing it.

Now we see this same form of attacking vs crypto companies as if the banking system isn't broke AF already.

This also allowed for a window for the SEC, CFTC etc to get involved as they saw it backed with united states denomination and allow them to start moving in.

Thus the rise of...

Algorithmic Stablecoins

What exactly is a algorithmic stablecoin you ask?

Most stablecoins today are backed by USD fiat as that's primarily the world currency. Even though we are starting to see some push back and also most likely a reason why the usa government is being so aggressive and on the attack lately.

Unlike those stablecoins Algorithmic are backed by other assets. They are mathematical algorithms linked to tokenomics and are often seen as riskier then fiat backed stable coins.

They use a duel token system a stablecoin and a volatile asset that maintains the stablecoins peg. We see exactly this in work right now with Hive and HBD.

In most cases hive should be fine unless everything was just liquidated out of it. I don't have the exact mathmatics on that I leave that up to the devs and programmers to understand and it's not something I personally want to dive into. However these types of tokens have had a ugly past such in the recent case of Terra and UST aka USTC.

Time will tell but the crypto markets for sure need to get this figured out sooner then later to stay ahead of the government crackdown.

This could mean with enough market cap Hive and HBD could become a central hot focus. With that type of focus we would most likely see hive jump to record highs we have never seen before. However with that comes oversight and eyes looking to crush the system.

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