What If Bitcoin Clashes With Stablecoins?

Aditya  |  May 20, 2020

There might be differences between the opinions regarding the purposes of cryptocurrency for bringing mass adoption. For some, it is being referred for digital use, whereas, others expect it to see a form of securities and investments. The emergence of stablecoins has proved their worth in the market capital. Stablecoin like Tether has successfully registered its name among the top cryptocurrencies by ranking 5. Before we leap to know about what if Bitcoin clashes with stablecoins, it is vital to be updated with currency utility. More than a medium of transaction, Bitcoin is considered more like an investment choice. Contrary to it, Stablecoins have been consistent in backing up of their currencies or commodities. People who have been preferring cryptos for storing value has now started diverting their focus on digital transactions due to the increase in technological advancement.

Bitcoin has been credited with the Bitcoin millionaires list which includes top Indian Bitcoins owners. It is all because of the popularity that Bitcoin gained during its debut and shined the fate of these richest Bitcoin owners. Many companies have showcased Bitcoin’s usage cases which mostly standardize it to be a currency instead of a value stored entity. Since the users of the BTCs were not much for transactions, so there was hardly any issue. But when crypto space is flooded with so many people, the occurrence of refund problem is expected due to volatility. This can lead to a serious loss for merchants and even customers.

Now let us know what if Bitcoin clashes with stable coins. Bitcoin seems to be self-sufficient in terms of being a promising financial system providing desirable security. In comparison to it, stable coins need the support of fiat currencies. If there are any changes like inflation and other serious crisis including debt in these traditional currencies, then it will have a direct impact on stablecoins.

There are currencies like Libra which have a motive to become transactional currency, globally. Currencies like Libra seems possible to let crypto reaching to an unexpected level, which hasn’t been observed before. They may be successful in grabbing the spotlight because of homogenized monetary technology, all over the world and which is free from volatility factors and is decentralized too.

Other than this, many countries are coming with a plan of bringing up their digital currencies based on the blockchain ledger system. Their prime motive is not to let their financial systems affected by any external currencies. Noticing deep interest for the stablecoins in the world, it won’t be wrong to say that these coins might sweep off the Bitcoin’s market capitalization. This is yet another example to determine what if Bitcoin clashes with stablecoins.

Conclusion

It will be a very tough competition if Bitcoin clashes with stablecoins. Winning over topmost cryptocurrency like Bitcoin is not that easy but not either too complex for stablecoins like Tether. This stablecoin has proved its mettle by ranking in the 5th position. Even USD Coin is too not much behind the race and ranks 25th position among the top 100 cryptocurrencies. So here we can say that stablecoins do have the potential to compete with Bitcoin and can sweep away its market capital. It is all because of the growing interest for them in the world. However, it all depends on time about who will diminish whom in the competition. If you are interested in knowing about the richest Bitcoin wallets and list of stable cryptocurrency, then stay abreast with all crypto updates.

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