A single image to understand the difference between stablecoins and digital currencies

In 1930, the United States told the world not to hold gold, as gold is very inconvenient; just hold US dollars instead. The dollar is pegged to gold, at 35 dollars per ounce, and you can come and redeem it anytime.

In 1970, the United States told the world that the dollar is the dollar, and gold is gold. Gold soared against the dollar, and don’t say I can’t repay my debts; now my gold reserves are enough to cover it.

In 2030, the United States told the world not to hold dollars, but to hold “stablecoins*” instead, as dollars are very inconvenient; stablecoins are pegged to the dollar, and you can exchange for dollars anytime.

In 2070, the United States told the world that the dollar is the dollar, and stablecoins are stablecoins. Stablecoins soared against the dollar, and don’t say I can’t repay my dollar debts; my stablecoins are enough to cover it, alright?

One by one, demanding debts like a death threat (laughs)

There are two branches to this. If in the coming decades, the United States reclaims the world's technological productivity and the dollar remains strong, then “stablecoins” will depreciate significantly, and then be kicked into the stinking ditch, while the blame is shifted to the knowledgeable king.

If in the coming decades, it cannot maintain a leading position, then this “2070” will come faster.

From a positive perspective, this is also a form of wealth distribution. After all, in 2040, the elderly in the United States may be holding dollars while the wages of young people may be in stablecoins.

This thing is actually easy to understand; dad (the dollar) pours all assets into stablecoins (the son) and takes all the liabilities on himself. Dad goes to jail, the son becomes a millionaire, and in the end, comes to bail out dad. Chinese people should be quite familiar with this.

When these high-quality entities hold a large amount of stablecoins, they naturally hope for stablecoins to appreciate while the dollar depreciates, which will become a collective willingness.

Isn’t the essence of this world just that big stores bully customers, and customers bully stores?

This is a game, so let’s be a little happier.