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Can stablecoins ever take over bitcoin?

by James Musoba
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Today, it is believed that bitcoin will always remain at the top of the cryptocurrency charts. It is a digital token, and therefore, it is decentralized. Moreover, you can see that if there is no regulatory body on bitcoin, there is no certainty of the future. Bitcoin can rise or fall in the future; therefore, we can never be entirely sure about it. So, speculating about the future of bitcoin is not something we are supposed to do when we are about to complete it with another option. Even though bitcoin’s future is uncertain, the question arises of why people need bitcoin as an alternative currency, and discussions are available online to read.

On the contrary, you can prefer competing and evaluating the other aspect of the comparison. Therefore, being attentive to the stablecoins available in the market is essential nowadays. Here, we are not talking about digital tokens like bitcoins which are less volatile.

Stablecoins are digital currencies of the Fiat currency converted and regulated by the government. The central government launches these, which are supported by the reserve bank of every digital nation. Moreover, it is a trial from the government to ensure they do not remain back in the race to become more modern in the future. Therefore, it is clear that the government regulates the stablecoins and, therefore, can have some drawbacks in comparison to the bitcoin when it comes to taking over the market in the future. Investment opportunities are becoming more mainstream in the bitcoin only, but the future will tell a different tale. But, it is still something that we are yet to see; therefore, all the speculations can be done in this department.

Stablecoins versus bitcoins!

For a complete and proper evaluation of the situation between stablecoins in the bitcoin, we are supposed to differentiate the booth. Yes, with a proper differentiation between the two investment and trading opportunities, we will be capable of understanding when is going to take over the other. According to the experts, bitcoin is better, but the future is yet to be seen. So, it would help if you always depended on the facts and figures, and that is something we will discuss in the below-given points to evaluate the situation of both these opportunities available.

  1. A very crucial aspect of the stablecoins that you are supposed to understand it’s that they will always be regulated and controlled by the government only. There is no chance that the market forces will control them; therefore, people may always find them bound by the government, which is a drawback. But on the other hand, bitcoins are never regulated by the government and provide people with a high degree of volatility which also provides space for more and more speculations and earning money.
  2. Another crucial aspect of stablecoins is that the physically existing commodity always backs them, like the United States dollar. For example, the US government regulates and controls stablecoin, the digital token of the United States dollar. However, it is also essential to be noted that the United States dollar is physically existing. Therefore, it ensures no errors or misses with your investment opportunity. On the contrary, digital tokens don’t have this physically existing back in power. So, they may be highly risky in comparison to stablecoins.
  3. To evaluate the stablecoins compared to the bitcoin, it is essential to understand the aspect of rules and regulations. People today find cryptocurrencies highly amusing and thrilling because they do not have any rules and regulations. The prices move freely in the market according to the market forces, and therefore, people find thriller adventure in digital tokens. On the other hand, the stablecoins provided by the government of different nations are highly controlled by the government in terms of their prices and volatility. They do not go out of the hands of the government whenever there is the worst situation in the market. This kills the fun for the people; therefore, they may not become very mainstream in the future soon.

Last words

These are a few crucial aspects that need to be understood about stablecoins compared to bitcoin. If you think stablecoins can take over bitcoin in the future, perhaps you are thinking the wrong way. It is because the bitcoins will always remain unregulated and stay a step ahead of the stablecoins.

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