Bitcoin is crushed by US dollar urfinguss
Emin Gn Sirer (CEO of Ava Labs), stated to Insider that "we are not anywhere near done" until the number-one coin is a stablecoin.
Stablecoins are more stable because they can be linked to assets such as the dollar. This makes them less volatile.
Regulators have questions about stablecoins' transparency and quality.
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Emin Gn Sirer is the CEO of Ava Labs. He believes that the first sign of mainstream success in crypto will come when a stablecoin surpasses bitcoin and becomes the most popular digital currency.
Sirer is the inventor of the avalanche cryptocurrency and its native token, avax. It was released in September 2017. He is a Cornell University computer science lecturer who helped set up the cryptocurrency platform.
He said that the crypto market will mature when a stablecoin, whose value is tied to a real-world asset, has the largest market capitalization of all digital currencies.
Sirer stated, "We aren't anywhere near done until the number 1 coin is a stabilizecoin." "That's my indicator of real success."
According to CoinMarketCap data, stablecoins currently have a market cap of almost $131 billion. Despite its high market value, stablecoins are still far behind bitcoin with its $1 trillion figure.
Stablecoins are different from other cryptocurrency because they are less volatile in their price due to the fact that they are backed with assets like gold and the US dollar. This makes them more useful for decentralized finance, such as loans.
DeFi, a system of peer to peer finance built on crypto networks and aimed at eliminating the central authorities that control traditional finance, is growing. For example, investors can get interest from borrowers on their digital currency holdings.
Sirer says that stablecoins can carry the steady value of assets into the DeFi ecosystem. This could allow them to bring in more liquidity. This could allow them to surpass bitcoin.
The chief of Ava Labs stated that it was going to be "amazing" because everyone in the space is looking for more money, and it's asking for more value.
"People want to borrow and want more stablecoins."
Sirer said, "So I expect the Circles of the world to grow, the tethers of the world to grow - it's going be really exciting,"
Both the US dollar is tied to the leading stablecoin tether as well as the smaller challenger Circle's USD coins are tied to each other.
Sirer claims that stablecoins have a steady value because they are tied to other assets. He said, "You can know exactly how much it will cost to get a hamburger at the corner shop."
These comments are made as stablecoins' strength could also be their Achilles heel. Regulators are concerned about both the quality of assets in their reserves as well as the transparency of issuers with investors.
The US Commodity Futures Trading Commission slapped Tether with a $41million fine for making "untrue and misleading statements". It claimed for more than two decades that it had enough US dollars reserves to support every USDT or Tether token. This was false and misleading.
Hindenburg Research is a short-seller that exposes fraud and offered $1 million for anyone who could provide undisclosed details about Tether's back.
Sirer claims that stablecoins have a steady value because they are tied to other assets. He said, "You can know exactly how much it will cost to get a hamburger at the corner shop."
The International Monetary Fund discovered that stablecoins can be linked to crypto-backed assets and that they are often supported by commercial paper, which is a type of short-term corporate credit.
The price of stablecoin titan, which was valued at $60 per unit, dropped by just a fraction of one cent in just a few hours. Mark Cuban, a billionaire, tweeted that he was affected by the loss.
