All stablecoins can only be generated from collateralized assets

All stable coins can only be generated by collateralized assets, while algorithmic stable coins are more efficient through algorithms to achieve collateralized assets. Other purely algorithmically anchored coins, air coins without any collateral, cannot be called stable coins.

All stablecoins can only be generated from collateralized assets

There are only two types of algorithmic stablecoins, namely partially collateralized and PCV (Protocol Controlled Value), and the others cannot be called algorithmic “stablecoins”. In other words, all stable coins can only be generated by collateralized assets, while algorithmic stable coins are more efficient through algorithms to achieve collateralized assets. The other purely algorithmic anchored coins cannot be called stable coins.

Found a feature, purely by liquidity mining to advance the project, in fact, 2B, to be the first to impress the big capital, the big capital to dig, the formation of a huge amount of lock-in, and then drive a large number of retail investors to pursue to push up the price of the coin. The most extreme example here is BDP, where the coin price was high when the lockup was over $6 billion, and the lockup collapsed instantly after the liquidity mining ended, and the coin price fell 80-90% instantly. This is actually the case with BASIS CASH as well. The project that relies on the use of features to advance is 2C, users with more people, the coin price sooner or later up, of course need an opportunity for an influx of funds, such as UNISWAP, Little Fox, Opensea and so on.

Since the 2.22 bitcoin plunge, the mainstream DEFI tokens basic market value as a whole did not rise, the hype money mainly transferred from ethereum to the project on the coin smart chain, which is the characteristic of the 2.22 so far. This is a different result of the two bitcoin crashes, the 2.22 bitcoin crash so far did not push UNI to new highs, but pushed up projects on BSC items and also pushed up BNB, which was really unexpected at the time.

This is like the developed countries in the process of development, will naturally spillover technology, operating model to the backward countries, because the world is flat, the Ether can not be a stand alone, and the first to absorb these spillover funds, must be the largest number of people, the most active underdeveloped world, smart links by these spillover funds and operating model. Then will it be more backward world to receive the spillover again? I think the next best influence will not be as big as the smart chain, and now after the baptism of time, Ether will soon have a new leap forward again. And other active backward worlds like Facebook or Twitter will directly hold users hostage to hegemony if they wake up fast.

From the temporary short-lived success of BSC, as well as the comparison with the original domestic well-known small ants, quantum chain, wave field, and the more bullish EOS, we will find that the most crucial thing is to grab the end-user to bring more practical effect than to grab the developer business. Grab the end user, the middle developer various dAPP developers is not a problem, because all want to make money, want to grab the traffic.

Grab the user from the C side, Facebook stable coin once opened, directly from the payment needs as a cut, soon become a blockchain system with a user volume of more than 100 million. Many countries will of course be extremely suppressed, but the amount of users over 100 million will still be reached soon. If he wants to do it, its ecosystem is also quickly can become the most prosperous, more than BSC, of course still may not be able to surpass the Ether.

Facebook coin issuance is very scary and will make non-cryptocurrency people change their perception of cryptocurrency. Imagine, the payment between Yiwu merchants and foreigners now, maybe all will become facebook stable coin payment, because the existing bank card system they maybe frozen, maybe have all kinds of problems. Of course there is still an OTC channel problem. Therefore, the release of Facebook will once again stimulate the accelerated application of DCEP, not only for personal consumption, but for the B-side supply chain and international payment system.

Innovation tends to happen in times of poor general environment, often born in bear markets, not bull markets. Successful projects, often extremely good at marketing in a bull market, they are accumulated in a bear market and marketed in a bull market.

The Chinese have a special preference for hardware mining. Other than bitcoin, you really don’t see much point in mining. Bitcoin hardware mining, just because Bitcoin is already big and the world is evolving, I can say that all kinds of other hardware mining using all kinds of hardware, whether it’s with UPU computing or hard drive storage, is kind of backwards, including FILCOIN mining, except for Bitcoin. Because the world is evolving.

The nature of anti-bitcoin people is to look at problems relying only on personal feelings, not on logic.

Anti-Bitcoin has various doubts, as when many people see Copernicus’ books will question why the sun revolves around the earth? Just as when they see Einstein’s papers they will question how time can still be compressed or elongated?

They will question how these new things can exist?

Human cognition, cognition in all fields, is actually evolving in this way, solidified cognition will be constantly broken by new cognition. Their logic, simply by following their logic to deduce a wrong fact, can be quickly broken, just like Galileo overturned Aristotle two iron balls fallen to the ground like only according to the feeling not according to logic as a haphazard thinking.

Bitcoin will not only replace gold and become the main value storage carrier in the future, but it will probably “replace” gold, that is, gold may withdraw from the historical stage of value carrier, because gold mining not only consumes energy, but also pollutes the environment, in addition, with the development of space technology (astronautics mining) and metal technology (new alchemy), human beings have more and more ability to obtain gold, the world’s gold unit price will not only not increase or even decrease, just like the Chinese history of silver, from a super high value carrier to today’s silver has become an ordinary metal.

Unable to see, unable to understand and refusing to learn are the characteristics of the anti-Bitcoin people. Warren Buffett’s investment is a profiteer of the dollar mint tax, and certainly does not want anything other than the dollar to affect his ability to make money. In addition for him, all new things basically do not invest, because new things are risky, such as the previous Internet. He wants investments that he can read and understand, safe investments.

For example, you often see anti-Bitcoin people ask the question, “Who gives credit backing to Bitcoin?”

Who does the credit backing for Bitcoin? That’s a pretty funny phrase? It’s pure inertia! Does gold have an endorsement from anyone? The fact is that fiat currencies were issued with gold as a collateral type anchor in order to protect the value of the fiat currency.

The Internet should not have any value, because it’s all virtual and not “real”,” said Zhao Changpeng. “, the Internet has no value, because it’s all virtual and not “real”. Centralized value is indeed illusory in nature, because the assets are not in the hands of the owner of the value.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/all-stablecoins-can-only-be-generated-from-collateralized-assets/
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