Neither Bitcoin Nor Ethereum, This Is What Is Predicted To Be The Money Of The Future!

Crypto assets are claimed to be future money. (Photo; Doc. Bitrates)

JAKARTA - Even though Bitcoin and Ethereum have become the crypto assets that dominate the market, initial expectations for crypto do not appear to have been fully met, according to Jeff Lewis, a product manager at Pantera Capital. According to him, stablecoins are poised to bring major changes in the crypto ecosystem.

For your information, stablecoins are crypto assets whose value is tied to the value of fiat such as dollars, euros and so on. A number of well-known stablecoins include USDT, USDC, DAI, TUSD, PYUSD and so on.

Lewis notes that after fifteen years since the publication of the Bitcoin whitepaper, challenges regarding Bitcoin's speed and scalability have reduced its potential as an ideal currency replacement. Meanwhile, Ethereum has become a decentralized system that supports the NFT ecosystem, Web3 applications, and DeFi, but remains volatile.

According to Lewis, stablecoins are the answer to these challenges. Stablecoins are designed to enable peer-to-peer transfer of value, providing the stability needed in the crypto world. Lewis even compared the stablecoin to payments giant PayPal, which has launched its own stablecoin, PYUSD.

The Future of Stablecoins

Lewis foresees the possible emergence of a “PayPal 2.0” that offers trust, transparency and higher yields than today's stablecoins. Although this is still hypothetical, he believes that market conditions will encourage providers to offer money market returns to be more competitive.

Financial firms such as Franklin Templeton, JPMorgan, and Citi have invested in blockchain technology and tokenization. They see great potential in the development of stablecoins and decentralized solutions.

Research from Coinbase suggests that stablecoin liquidity could be key to asset tokenization in the future. With the development of PayPal and the mass adoption of stablecoins, the crypto market could experience significant growth.

Although Bitcoin and Ethereum have paved the way for cryptocurrencies, stablecoins appear to be a strong alternative that can take crypto to the next stage in its ecosystem evolution.