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Stability has its spice, and so does volatility. Bitcoin isn't widely adopted in daily life, not only because understanding and managing private keys is difficult, but also because of its price volatility. Before discussing stability and volatility, there are two points to clarify:
1. Stability isn't necessarily good, and volatility isn't necessarily bad. Stability means no room for growth or disruption, which is good for maintaining the status quo and benefiting established interests but bad for those seeking improvements. The same applies to asset prices; if Tesla stock prices were stable, the holders wouldn't be happy. However, for a currency used in daily transactions, stability is a basic requirement.
2. Stability and volatility are relative terms; you can't be stable or volatile on your own. Often, when we discuss whether the price of a certain asset is stable or not, we don't specify what it's relative to. This is because the US dollar is implicitly assumed as the standard, much like saying something is always moving when Earth is the implicit reference point. This is a blind spot in human thinking and a testament to the power of the US dollar. Globally, pursuing price stability often involves acquiring US dollars, and the US can create as many dollars as it pleases.
Now, let's put aside the possibility of disruption and consider succumbing to the dominance of the US dollar. Since price volatility is a stumbling block to the adoption of cryptocurrencies, some have thought of issuing stablecoins as a solution. It's self-evident what "stability" corresponds to: the US dollar. The first popular stablecoin was Tether (USDT), and others like USDC and DAI followed. Their methods vary, but their goal is the same: achieve a 1-to-1 peg with the US dollar using cryptocurrency technology to anchor the value to the dollar.
With cryptocurrency stablecoins, there's one more choice and one less concern when entering this new world. Those who accept the US dollar as the standard can convert their assets into stablecoins and enjoy the advantages of cryptocurrencies without being exposed to price risk. This is why I sent 1 USDC when introducing the concept of creating a borderless account. Note that this doesn't mean USDC is better than DAI or BTC; it's just the easiest to understand, the easiest to get started with, and involves the fewest new concepts. I highly recommend readers who are already familiar with this try DAI or even BTC with price fluctuations and long-term hedging against the devaluation of the US dollar. But to avoid causing choice paralysis, this column won't introduce too many options and will focus on helping the public migrate to a jurisdiction without major restrictions.
Argent borderless accounts, combined with USDC, offer a user experience similar to an HSBC account with Payme and US dollars. You can also enjoy the convenience of global transfers. More importantly, you won't be subject to traditional bank restrictions. Feel free to send 1 USDC as a welcome gift for new migrants to a jurisdiction without major restrictions – there's no entry mechanism there. |
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Post time 3-10-2023 08:37:12