Stablecoins, a huge piece of cake to be distributed

7月11日

The core of stablecoins lies in payment and opening up channels for sovereign currencies to communicate with the US dollar. In other words, whoever can gain an advantage in the field of payment and exchange in the future will be the biggest winner.

CIRCLE has the advantage of first-mover speculation, which is why CRCL can soar 300%+ in the secondary market, but the current profit model of USDC is basically only the US dollar interest. In the future, the income will shrink significantly after the Fed cuts interest rates. The market will start to think after calming down.

Market transactions are always based on expectations, not the present. Can USDC dominate the world in the future? I don’t think so. The first obstacle is USDT, which goes without saying. Second, as the entrance to traffic, Binance and TRX have already stood on the side of Trump’s family’s USD1. Grabbing the market through political power is at least very effective during Trump’s term. Third, many sovereign countries around the world are also issuing stablecoins anchored to the US dollar. It is unknown who will win.

If it is short-term speculation, then any target can be traded. For value investment, CRCL faces many challenges and needs to take one step at a time. Heavy gambling is not my trading style.

I will add more views on stablecoins later.

10月15日

交易开始

Invest in CRCL and sell after two years.