That seems to be the assumption that most are making. It looks like they are moving ...

npub1md3…ctp9

2025-03-24 13:12:04

in reply to nevent1q…4ey2

That seems to be the assumption that most are making. It looks like they are moving to dollar denominated stable coins issued by banks. These coins will compete with each other on things like speed, cost of payment and sound backing. Those that are backed by bitcoin will be preferred. The more bitcoin they hold relative to the number of dollars they have issued, the better.

As these various issuers buy more bitcoin to make their stable coin look more appealing, the bitcoin price goes up. Given that BTC is finite and the dollar coins they issue are unlimited, the price of BTC will eventually go up to the point where the value of the BTC held in reserve is equal to the dollars in issue.

These dollar stable coins become de facto exchanges as anyone that wants part with their BTC can get newly issued dollars for the deposit.

People will have the right to whatever currency they want. They can use BTC if the merchant accepts or any one of the dollar stable coins if they merchant accepts them. If there is one stable coin that is undercapitalised, then they might find that merchants refuse to accept them. The market will naturally shrink the supply of that one and so its BTC reserve ratio increases.

The ETFs are in a perfect position to be stable coin issuers.

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