Stablecoins make cryptocurrency much more easy to understand. For everyone. While BTC and ETH have been becoming increasingly popular in recent times, they’re still relatively niche—left to people who understand tech or have been following the industry closely for some time.
In order for crypto to really take the next big step towards the mainstream, a solution is needed that’s easy to understand for everyone, not just the tech-savvy. That’s why stablecoins are perfectly positioned and could be the next step in massive crypto adoption.
Why traditional cryptos are hard to understand
Let’s face it, cryptocurrencies aren’t always that easy to use. Not only are there plenty of restrictions and hoops to jump through when it comes to buying and using them—they’re also hard to understand.
And that’s the key thing that’s limiting mass adoption. To fully understand cryptocurrencies like BTC, you need to do a lot of reading or at least have been following the industry for some time.
While more and more of the mainstream are starting to hear about crypto—they still don’t understand it.
And one of the main reasons people are hesitant to use cryptos like BTC and ETH are because they are so volatile. The volatility of BTC could be holding it back when it comes to mass adoption and use for everyday purchases.
If you buy something with BTC, it could be worth loads more or less by the time the transaction has gone through. It’s also hard to understand exactly how 0.0025 BTC is worth when you look at the price of an item you want to buy.
Frank had a few Bitcoin he wanted to spend on some books from a digital bookstore. They were accepting Bitcoin, so he wanted to start using some of his holdings for real purchases as he believes mass adoption like this is key for the future of Crypto. However, Frank still struggled to understand exactly how much he was spending at any one time. Especially for small purchases like eBooks.
When he saw the quoted price of 0.0005 BTC for the books he wanted, he was confused. He had to get his calculator out to work out exactly what this meant in a currency he understood (USD).
And by the time the purchase had gone through, the actual price he paid in BTC had fluctuated even more, meaning his books cost a bit more than he thought they would. It’s issues like these that are putting off people like Frank, and people like you, from using BTC for everyday purchases.
Why stablecoins could be the answer
Most of these problems are solved with stablecoins, like those that are tied to the value of a fiat currency like the USD. With stablecoins, users know exactly how much their cryptos are worth, so are much more confident when using them for purchases of goods and services. They get the benefits of a cashless digital currency without the drawbacks.
That’s another important point about other cryptos like BTC and ETH. They aren’t really seen as currencies by people who hold them—they’re seen as assets or investments. Something that could be worth a lot more in the future, so something that you wouldn’t really want to spend right now.
In order for crypto to really take the next big leap towards mass adoption by the mainstream, it needs to be viewed as a currency. Something that is stable, and you can be confident when spending that the value isn’t going to fluctuate wildly—or that you’re wasting a potential future investment by spending it now.
So stablecoins like SameUSD that are tied to a strong store of value like other stablecoins that are pegged to USD make crypto much more appealing to the mass market. And that’s why stablecoins are key to the mass adoption of crypto as a currency, rather than an investment or asset. They give users all the benefits of a digital currency, alongside the stable security that those government-backed currencies offer.
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