Here Is Why Bitcoin Is the Best Stablecoin.
Few understand this.
It would be an understatement to say that the stablecoin market has come back into the spotlight in recent days. With the collapse of TerraUSD (UST), all regulators around the world now have their eyes on stablecoins. As you know, stablecoins are special cryptocurrencies whose purpose is usually to be pegged 1:1 with a fiat currency.
Generally, it is with the US dollar that the most popular stablecoins aim to peg 1:1. This is the case with USDT (Tether) or USDC (USD Coin). But this was also the case with the UST of Terra.
To ensure this parity mechanism, different strategies exist. A 100% parity on the US dollar, is the case of the USDC. A parity with US dollars and other assets (including possibly Bitcoin), such as USDT. In the case of TerraUSD, the approach was different again. Revolutionary according to its founder Do Kwon, who said that algorithmic stablecoins, like his UST, were the future.
Many people wanted to believe in it for several months, which explains the incredible success of the Terra ecosystem when all the flaws exploited recently were already visible and known to everyone. But as you know, greed leads to blindness. And some people are willing to believe in miracles to make more and more money.
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