Why Crypto Stablecoins are the Future of Money

Jan 30, 2021 | Blog, Cryptospace | 2 comments

I think you are wondering why I actually think, that the future of money is called “stablecoins” right?

Well, let me explain that right after the disclaimer.

Disclaimer: This blog post is no recommendation to buy crypto currencies and it is also no financial advise.

Please do your own research before you may invest in crypto currencies. Thanks for understanding!

And now, let’s learn more about the future of cryptocurrency and how to buy crypto currency with the best apps.

The Riot

It all started with this. The big rush into the crypto market triggered more intensive after this event!

For ages and centuries the stock market was there to enable all people around the globe to invest into the economy.

That such a long evolution can fade into strange surroundings was proven during the GameStop rebel run on the global stock-market happened end of January 2021. How this started?

Well, it was basically a drop that overflooded the can. Short positions on the stocks of GameStop of 140% (40% more than actual shares are available). This was the trigger for a big reddit group to start buying stocks from GameStop as hell. Result was a massive rise in price per share and a insane loss for “the big players” hedge funds.

I do not get political here, it is how it is. If this was good or not is not in my responsibility to decide.

In fact, it showed the people around the globe how irrational the stock market became during the last centuries.

Source: CNBC

Financial System 2.0

So what does this have to do with the title of this post?

Well, I think we are just a huge step closer to the financial system 2.0.

Bitcoin came to disrupt the financial system as we know it. Many people said it is a game changer as like when we moved from exchanging goods for food to exchanging currencies, coins, gold and more for food.

Since Bitcoin is now there for more than a decade, we know now, it has not changed the world. But 12 years is no time at all for such massive changes. This will take another few years to become more visible.

But I honestly think, that this stock riot happened end of January 2021 really was a milestone for the move to finance 2.0!

Stablecoin

USDC, USDT, are stablecoins that are made to reflect the USD value 1:1 to the crypto space. The fact that you can get currently up to 20% and sometimes even more yearly yield on your USDC funds these days, shows very clearly the restart of the financial system. People in their fifties might remember the 10%+ interest rates at saving accounts (in Switzerland 30 years ago). This is now again becoming reality. But not in the financial system 1.0!

Sure, this is a momentum and who knows if these 20% are still valid if you read this text in a year or two, but still, if it is true, it shows exactly what I expect today.

Stablecoins are coins made in the crypto space to generate trust and to have something comparable. They are made to have less volatility. Made to create the foundation for finance 2.0!

Swissborg offers up to 20% Interest on your USDC holdings. For more details see the picture source, their blog entry. https://swissborg.com/blog/swissborg-launches-usdc-smart-yield

What if?

What if I tell you know that in 10 years the following scenario is just “normal”?

Mike is having his crypto banking app (similar to the ebanking app from your current bank but simply more modern) on the phone open and shows us his funds. He is having USDC 2000 on his account while he has another tab that says “savings”. While looking at his savings we can see that he earns currently 6% interest p.a. on his 6000 USDC in this savings account. He also shows us some Ethereum Coins in the savings with some interest too and a small amount in “anyfuturecoin” which has massive interest rates next to it. (equivalent to any high yield investments in the stock market as of today).

In Starbucks he shows his phone and uses it to pay (as we know that also today already) but he is paying with his USDC account. In a few days Mike will get his salary directly onto his wallet as USDC coins. At amazon he is buying his lovely new iPhone 23 with USDC.

This could be the future and to become “normal” I think we need ten more years. Technically possible is it already today. But not with Starbucks and Amazon in my knowledge but that’s not a problem for the concept.

It must not be USDC, I just take that coin as he is today one of the biggest stable coins.

But I think you get the point?

Who will back up the Stablecoins?

Sure, if we make this experiment to the end, there are some things to be considered for which I do not have an answer yet but honestly, the humankind will find a way if they want this to happen 🙂 Who will back up the USDC once USD as fiat money is gone? Well, In my opinion the market will fix this by itself. if we change all “digital” USD today to USDC the USD disappears and will be replaced with the USDC which has the same value as before but is technically different to get onto your digital accounts.

But please, don’t judge me 🙂 I am not 100% familiar with the fiat market and also not the crypto market but if I see what happened on technical side since Bitcoin, I am more than sure that it would be possible to move completely to crypto coins. Maybe not in 10 years but 50 years would be more than enough to change the whole system completely!

National banks are already starting to think about stuff like the e-CHF, China has progressed their project already quite a bit. So there is momentum and movement within!

The Power of the Individual

As you are here into this blog post, you want to know why I think that stable coins are the future of money. Because I believe in them and I can see these days that more and more people understand the potential of these coins. I have to assume that each day there are people understanding this and it will continue to grow. Once all the decentralized finance products (DeFi) and web 3.0 will be more established, there will be a serious market around it. There will be warehouses selling goods for crypto as like we have in Switzerland the biggest warehouse that already does this for 2019 and 2020. 🙂

There is clearly a need for a new, fresh air in this system. Crypto will be that new wind.

How to start NOW?

We are still standing in front of a massive change to our financial system and to be honest, no one knows the future, we can all make just assumptions depending on what we saw for the last 12 years.

My personal opinion on this will follow after the disclaimer which is needed to protect me from any stupid things some people might do 🙂

Disclaimer: Investing in ANYTHING, including the crypto market can make you insanely rich OR completely ruined! If you have no plan, please ask experts for help (not me). My recommendation is no financial advice, it shows only what I would do and what I do. If you do the same or something similar, that’s all your decision 🙂 Honestly 🙂

How I buy Stablecoins

I have some apps on my smartphone to be into the crypto space which were a result of massive research and long discussed and analyzed decisions. I am living in Switzerland so I can’t guarantee that you can see these apps and services too in your country. As a rational minimalist, I am always trying to find the best solution to solve a problem with as less of everything. Less, apps, less fees, less workarounds and so on. Just as simple and secure as possible.

What I use regularly is Swissborg and Binance.

Swissborg keeps the bigger part of my crypto money. They have the highest security and in the same time the most streamlined and reliable process I have seen so far! Buying Coins, swapping them and all this stuff is cheap, fast and easy in their app. As like on a modern e-banking app. Already now they offer yield on 2 currencies which they call “smart yield farming” which is a promising feature and new to me at ease of use!

If you use my link to signup and invest, we both will get a kind of a lottery ticket which is worth up to 100 USD (more likely in the 1-30 USD range). So I would be happy if you signup through my link as a thank for my blog post and knowledge sharing 🙂

Binance as an exchange platform on the other hand is the more speculative part for me. I am buying there lots of coins of which their projects make a lot of sense to me and have a big potential in my opinion.

Buy them at Swissborg

Swissborg, invest in Cryptocurrency

Swissborg is as you can imagine a thing originated in Switzerland. Their app has been the best in class during my testing in December 2020 and January 2021. Their own token has made a crazy plus of several thousand percents during these two months. My trust goes fully to them as they implemented one of the most secure technologies currently available to secure our wallets, they offer regular updates with new functions and they are visible online with quarterly reviews and much more. In my personal opinion clearly the best app to invest properly, cheap and reliable into crypto currencies these days. They have less coins available for trading as others (example Binance) but they clearly have the best app for it (my personal opinion). Lookout for my Swissborg review that is coming soon! With Swissborg you can buy and sell cryptocurrencies and stablecoins. It is by far the best app to buy cryptocurrency. Invest in the future of money, today!

Conclusion

These two tools do open all doors for me I want to go through. While Swissborg has the more reliable coins, some yield farming on the stable and “not stable” coins, their own token and much more, I am using them as my “ebanking of the future”.

With Binance I am buying what i cant get on Swissborg. As Binance has the highest amount of possible coins to buy, it is next to Swissborg the best exchange for me.

You might question why I am talking about crypto. Me, a blogger that is known for traditional businesses and how to be successful. Well, exactly this “how to be successful” does not stop there. Crypto currencies like Bitcoin and Ethereum have been an afterburner for a lot of startups that just needed a new way to get attention in the market. A lot of gorgeous and very promising companies have been founded around the crypto ecosystem. To not mention this chance to be successful would be wrong and as I am in this topic anyhow it was a no brainer to start talking about this and there will be more of this!

Please let me know what you think about this topic.

Share this post with your friends if you can’t wait to move to finance 2.0. 🙂

Or check below my other topics about which I have some things to say 🙂 I can offer you to one day, smell like success!

2 Comments

  1. look who became a crypto marketer… i told you haha

    Reply
    • Everything that has something to do with success is in my area of interest 🙂 As you might know. Yes, Crypto is a highly interesting topic and one of the most lucrative for me historically seen 🙂 still i will not focus all my efforts on this topic. My posts will continue to focus on success, not on crypto 🙂 Have a lovely day Fabe!

      Reply

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