If we stop measuring crypto assets in #USD and start measuring them all in #BTC it would lead to a significant shift in the way we value and understand the relative worth of different cryptocurrencies.

Currently, most cryptocurrencies are measured against the US dollar, which is the world's dominant reserve currency. However, as Bitcoin is one of the most widely adopted cryptocurrencies, measuring all other cryptocurrencies in Bitcoin would provide a standardised unit of account within the crypto ecosystem.

This approach could be beneficial for several reasons. Firstly, it would eliminate the impact of fiat currency fluctuations on crypto assets' value, making it easier to compare and track the performance of different cryptocurrencies. Secondly, it would reinforce Bitcoin's position as the dominant cryptocurrency and the industry's reference point, which could boost investor confidence and trust in the overall crypto ecosystem.

However, there are also potential downsides to measuring all cryptocurrencies in Bitcoin. Firstly, it could create a more complex trading environment, as traders would need to convert between Bitcoin and other cryptocurrencies to make trades. Secondly, it could lead to an over reliance on Bitcoin and a neglect of other innovative cryptocurrencies. Finally, it could make it more challenging for traditional investors to enter the crypto market, as they are used to valuing assets in fiat currency terms.

Overall, while measuring all cryptocurrencies in Bitcoin could have some benefits, it is not without potential drawbacks, and it would require a significant shift in market sentiment and infrastructure to implement.

#coingabbar

Over time, the value of the USD has been weakened by printing more money. Since 2008, the problem has worsened and has resulted in the collapse of many fiat currencies and their assets. These events are more frequent than people realize, and fiat currencies typically have a lifespan of about 35 years. If a country's Debt-to-GDP Ratio goes over 200%, the chance of its currency being buried in the fiat currency graveyard during one's lifetime is high. One of the few currencies that can evade these inevitable outcomes are cryptocurrencies such as Bitcoin.

Is your fiat currency up next for burial in the graveyard?

#currencies #USD #crypto #bitcoin

The recent collapse of Silicon Valley Bank (SVB) and Signature Bank has raised concerns about the fairness and sustainability of the current financial system. While the federal government has taken swift action to protect depositors and minimize damage, some have pointed out that taxpayers may ultimately bear the burden of bailing out depositors.

The stability of major stablecoins, including USD Coin, #USD Digital, and DAI, was thrown into question after #Circle announced that SVB had failed to transfer $3.3 billion out of a total $40 billion withdrawal request. The ripple effects of the banks' collapse are far-reaching, with numerous other entities tied to the banks facing potentially irreparable damage.

In response, US President Joe Biden has assured the public that no American taxpayer will bear the brunt of the fallout, and he is committed to holding those responsible for the event accountable. However, some of Biden's Twitter followers remain sceptical, pointing out that everything he does or touches costs the taxpayer.

The Federal Reserve is conducting a thorough investigation into the factors that led to the failure of SVB, including examining how the institution was supervised and regulated before its collapse. SVB was shut down by the California Department of Financial Protection and Innovation on March 10, with no specific reason given for its forced closure. 

However, it is suspected that severe liquidity troubles stemming from major losses on government bond investments and unprecedented cash withdrawals may have led to its collapse.

It is crucial that the government takes swift action to prevent similar financial disasters from occurring in the future. By closely examining the causes of SVB's collapse, necessary reforms can be implemented to ensure the stability and security of the financial system.

Overall, while the federal government has taken proactive steps to minimize damage and protect depositors, concerns remain about the potential cost to taxpayers. It is important to consider alternative solutions that can protect both depositors and taxpayers in the long run.

#coingabbar #SVB #crypto2023

#Stablecoins have become an integral part of the cryptocurrency ecosystem, serving as a bridge between traditional fiat currencies and digital assets. They are designed to maintain a stable value by pegging their price to a specific fiat currency, such as the US dollar. The most popular stablecoins, such as Tether (USDT), USD Coin (USDC), and #Binance #USD (BUSD), have a market cap of billions of dollars, and their value has remained relatively stable over the years. However, a recent incident involving USDC has triggered a domino effect that has caused other stablecoins to depeg from the US dollar, causing a ripple effect across the crypto market.

In early February 2021, USDC's value started to drop below its pegged value of $1. This caused panic among investors and traders, who started to sell their USDC holdings in favor of other stablecoins or cryptocurrencies. The drop in USDC's value was attributed to several factors, including increased demand for USDT, which caused USDC's liquidity to dry up, and concerns about Circle, the company behind USDC, which had been subpoenaed by the US Securities and Exchange Commission (SEC).

As USDC's value continued to drop, other stablecoins began to follow suit. Tether, the largest stablecoin by market cap, also saw its value drop below $1, albeit temporarily. Binance USD, which had been trading above its pegged value, also dropped below $1. The depegging of these stablecoins triggered a domino effect that caused other stablecoins to follow suit, including DAI, a stablecoin pegged to the US dollar, and BUSD, which had been trading above its pegged value for months.

The depegging of stablecoins from the US dollar caused a panic among crypto investors and traders, as many saw it as a sign of instability in the market. Some speculated that the depegging was caused by a lack of trust in stablecoins, while others attributed it to market manipulation by whales and other market participants. However, experts believe that the depegging was caused by several factors, including the increased demand for stablecoins, which had caused their liquidity to dry up, and the lack of transparency and regulation in the stablecoin market.

The depegging of stablecoins from the US dollar has raised questions about the stability and reliability of stablecoins, which are supposed to provide a stable and secure alternative to traditional fiat currencies. It has also highlighted the need for more transparency and regulation in the stablecoin market, as well as the need for more diversified and decentralized stablecoins that are not tied to a single fiat currency.

In conclusion, the recent depegging of stablecoins from the US dollar has triggered a domino effect that has caused panic and uncertainty in the crypto market. It has highlighted the need for more transparency, regulation, and diversification in the stablecoin market, as well as the need for a more stable and reliable alternative to traditional fiat currencies. As the crypto market continues to evolve, it will be interesting to see how stablecoins will adapt and evolve to meet the changing needs and demands of investors and traders.