RE: The Future of Stable Coins

avatar of @taskmaster4450le
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1 min read

Blockchain can only be backed by one thing: trust.

That why blockchain was created, to establish trust. By going with a decentralized consensus mechanism, as compared to the ledger system run by the banks, the trust was to increase.

Perhaps we can trust the ledger and the transactions tied to it, but what about that built on top of it, i.e. cryptocurrency?

Here is where people make the same mistake with crypto that they do with fiat currency: they overlook utility.

The challenge for UST was it was "backed", for the most part, by LUNA. What was the utility for either of these? The answer is none.

With HBD, there is the "backing" by Hive. The key is to focus upon building utility for both coins.

That is how you build the desire within people to hold and use the coins. Sadly, it is completely overlooked in the crypto world.

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