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Introduction:

During today's scroll through my feed, I found this awesome post by @bitcoinflood. I have been reading their articles regularly for quite some time now and always find their work to be thought provoking and filled with great insights on the cryptocurrency world!

What Was It About?

This article was a discussion on the effects that stablecoins are having on the cryptocurrency markets. The fear that was being expressed by @bitcoinflood was that if there is too much investment in stablecoins, it may end up sucking money out of the market cap of cryptos such as Bitcoin or Ethereum.

@Bitcoinflood mentions the idea that stablecoins are offering rates of interests that are blowing traditional banks completely out of the water. This is something that I have mentioned before in my own work and is absolutely true, there is no way a centralized banking system can continue to support their business (using deposited funds to fund predatory loans and do other shady things) if they are giving out interest rates between 5-10% like many stablecoins are offering.

In the conclusion, @bitcoinflood notes that these stablecoins can also be seen as future pools of money that can be used to speculate in the rest of the market; this is something that I fully agree with!

What I Liked:

I really liked the discussion regarding what stablecoins are doing to the market at large. Though I found myself finding reasons why heavy investment in stablecoins would not be too damaging to the rest of the market, I was educated on the other perspective regarding the issue. My argument was essentially that as a result of diversification, investment in stablecoins would not be too harmful for the the health of the more speculative assets in the market (bitcoin, eth, etc.). I found an analogy between crypto and wall street by comparing the stablecoins to bonds and crypto to stocks, one is obviously much more risky than the other, yet we see consistent investment in both stocks and bonds.

Despite my own views, had I not read this article, I may have been stuck in my beliefs and ended up being filled with arrogance on it. I am looking forward to continuing discussion on the topic under their post and possibly under this one as well! I really liked that despite my own beliefs being different, the article provided fantastic points to think about and debate with the community!

With that, I officially declare @bitcoinflood an official @leofinance All Star!

@mariosfame gif once again, I love it:

@sgt-dan with this sick pic:

@gr33nm4ster made this awesome gif I needed to share, we thank him as well!:

NEW TRIBE HERE!

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Who I am: My name is Rob and I am a college student doing my best to get involved in the crypto world. I have enjoyed blogging thus far and thank you for reading my article! Give me a follow and let’s build the community together through consistent engagement!

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