{"id":407225,"date":"2019-12-13T18:00:16","date_gmt":"2019-12-13T18:00:16","guid":{"rendered":"https:\/\/wncen.com\/?p=407225"},"modified":"2019-12-13T17:15:24","modified_gmt":"2019-12-13T17:15:24","slug":"stablecoins-could-be-cryptos-true-killer-app","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/stablecoins-could-be-cryptos-true-killer-app\/","title":{"rendered":"Stablecoins Could Be Crypto’s True Killer App"},"content":{"rendered":"

During the crypto hype bubble and Bitcoin<\/a>\u2019s meteoric rise, speculation ran wild due to the incredible potential the emerging technology could bring to the world, if only the technology could find its \u201ckiller app\u201d \u2013 something that makes the technology a must-have addition to daily life.<\/span><\/p>\n

While a clear killer app never arrived, there\u2019s evidence growing that stablecoins may be it, and it could be harmful in the long run for Bitcoin and other cryptocurrencies.<\/span><\/p>\n

Crypto Killer App Could Emerge From Stablecoin Arms Race<\/h2>\n

Throughout the cryptocurrency industry\u2019s young history, the entire story has been predominantly about Bitcoin<\/a> and its unstoppable rise. The cryptocurrency took the world by storm in late 2017, when it went from being relatively unheard of to on the tips of the tongues of retail investors everywhere.<\/span><\/p>\n

Related Reading | Accurate Trader Calls For $1K Bitcoin and Destruction of Crypto Industry\u00a0<\/a><\/strong><\/em><\/p>\n

FOMO pushed the price of the crypto asset to $20,000, but the bubble eventually popped when Bitcoin\u2019s network bottlenecked, showing signs that the technology wasn\u2019t yet ready for the exuberant expectations speculators were dreaming of.<\/span><\/p>\n

This year, Bitcoin<\/a> price picked up once again and went on a parabolic rally. It wasn\u2019t until Facebook debuted its Libra stablecoin cryptocurrency<\/a> that Bitcoin\u2019s rally topped out, sending the leading cryptocurrency by market cap plummeting back into a downtrend.<\/span><\/p>\n

Since then, Bitcoin has been demonized by government officials<\/a> and regulators, and even United States President Donald Trump spoke out in opposition to the cryptocurrency and Facebook\u2019s Libra.<\/span><\/p>\n

Stablecoin Trading Volume Outshines Bitcoin<\/h2>\n

The emergence of Libra, however, amplified the arms race taking place amongst stablecoins. Libra itself is designed to be a stablecoin, pegged to the dollar to provide stable pricing for holders of the asset.<\/span><\/p>\n

Cryptocurrency\u2019s notorious volatility is due to the speculative nature of the asset class, and because the asset isn\u2019t tied to other assets like fiat currencies, gold, or real estate. Stabelcoins eliminated the volatility, yet still, retain the utility and speed that Bitcoin and other cryptocurrencies provide.<\/span><\/p>\n

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So what\u2019s the next big app in crypto use case after SoV, speculation, and capital formation? It seems to be stable coins. The evidence of this is trading volume led by USDT, which has now exceeded Bitcoin.<\/p>\n

— Leon Fu (@leoncfu) December 13, 2019<\/a><\/p><\/blockquote>\n