I once told my copartner that most times, it is not the investment capital to invest in a project that is the problem but rather the certainties of the returns. Of course, banks can always give out that loan; how sure you are about the moves you are about to make? Yes, there is no sure investment; the part of the world is a playground of risk. Nevertheless, some proof to be much riskier than others. Volatility is like a double edge sword; one side for and the other side against. It has been the reason why many remain very skeptical about the cryptocurrency ecosystem.
Trust me, when holding these assets, you have to be doing your checks every NOW and then unless you are going very long term. When looking at traditional banks you will notice this difference; they are always working with stablecoins in the digital fiat realms. It has been a way to gain customer’s trust that any percentage of annual returns is sure.
We have to admit not everyone loves the rough risk, it has been one of those experiences when you lockup up an asset for a certain period of time but still realize you found some loss depending on its volatility. No one is currently afraid of going long term on Bitcoin. The chances of hitting 200k to 500k are high when looking at who is sitting at the US level. We will not be focusing on Bitcoin but rather a coin that is taking the crypto industry by surprise; stablecoins.
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We can't ignore the green flags, it has been a big talk ever since the GENIUS Act was passed. What exploded Bitcoin was ETFs because big firms can NOW indirectly hold Bitcoin. This is what will be happening too with stablecoins but the difference here is that stablecoins on its own seems readymade. People are already used to the dollars as a unit of exchange. Not ALL big firms are after the hassle of yield against volatility but rather a sure ROI.
Soonest, we will be seeing trillions of dollars moving into the stablecoins markets. What this means is this; confidence for a realized annual ROI will increase making the crypto space full of so many transactional activities. Take for instance what happens with HBD, it pays an annual ROI of 15% meaning if one could go long for like five years, he is sure of a fixed compounding effect. HBD of course is pegged to dollars.
This cannot be same with Hive, of course there are high potentials of getting even a far higher ROI than this when looking at first, a shift in market price and secondly the rewards for delegated of staked Hive. Nevertheless, one must admit, not all big firms will love a game of chance in the long term. We are talking of millions to billions of investment capital here, you have to be sure there is a way out to pay your potential investors. Chances are not the way to explain professional investment.
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This is why I feel stablecoins may lead the investment market in the long run, it has high certainty of ROI. Can it out run the Bitcoin market? When looking at the market cap currently the gap between both is very big. Adding up USDT and USDC is not still a near competition. It is a matter of how scarce will the US Dollar be if it becomes a forefronter in the crypto space? As I said earlier, any asset that is not stable requires a closer attention. We can admit that we do all this dicey business of growing our holding not actually because we love to but mostly because we have less.
Stablecoins market is something very different from here; the difference shifts from low investment for an expectant future high returns of the crypto assets to high investment sure returns. Medium investors will flood the crypto market while stability providers will be throwing that heavy bucks on stablecoins to sweep compounding effects overtime.
To conclude, I see a huge future for the stablecoins market here. The US dollar is indeed having that fortunate moment. I feel this will have sailed even farther than this if the Biden regime understood how this would have turned out to strengthen the US economy. The dollar will indeed become stronger against other fiats. It is something that European nations are dreading currently. Big money holders will continue to dive into the world of crypto, it won’t necessarily be for Bitcoin or Ethereum, stablecoins is giving out something unique; a unit of account and a sure fixed ROI and big investors love this certainties.
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