The Truth Behind the U.S. Stablecoin Bill: It's Really About 'Debt Conversion'
In the past, major buyers of U.S. debt were central banks and sovereign funds, but now these big players have stopped buying, and some are quietly reducing their holdings, opting instead to stack gold.
With a multi-trillion-dollar gap that no one is filling, what's the move? The answer is: leveraging blockchain technology to let global retail investors take the baton, which is what stablecoins like USDT and USDC represent.
Many folks think they’re a safe haven, but in reality, they're just the dollar's way of finding a bagholder, set up as a vacuum cleaner at the base of the internet:
1. Breaking it down: Previously, when big players bought, it was in the tens or hundreds of billions. Now, stablecoin issuers break these U.S. debts apart, package them up, and sell them via tokens to billions of retail investors worldwide, while enhancing the dollar's penetration and dodging forex controls.
2. Precision absorption: As long as you hold stablecoins and participate in the so-called wealth game, you’re essentially using your private liquidity to help alleviate sovereign debt risk.
This is reminiscent of the 2008 financial crisis: big players exit, and retail investors crowdsource to fill the gap.
When all the chips of any asset end up in retail hands, it's basically the last leg of the race, and you know how that ends.
In the past, major buyers of U.S. debt were central banks and sovereign funds, but now these big players have stopped buying, and some are quietly reducing their holdings, opting instead to stack gold.
With a multi-trillion-dollar gap that no one is filling, what's the move? The answer is: leveraging blockchain technology to let global retail investors take the baton, which is what stablecoins like USDT and USDC represent.
Many folks think they’re a safe haven, but in reality, they're just the dollar's way of finding a bagholder, set up as a vacuum cleaner at the base of the internet:
1. Breaking it down: Previously, when big players bought, it was in the tens or hundreds of billions. Now, stablecoin issuers break these U.S. debts apart, package them up, and sell them via tokens to billions of retail investors worldwide, while enhancing the dollar's penetration and dodging forex controls.
2. Precision absorption: As long as you hold stablecoins and participate in the so-called wealth game, you’re essentially using your private liquidity to help alleviate sovereign debt risk.
This is reminiscent of the 2008 financial crisis: big players exit, and retail investors crowdsource to fill the gap.
When all the chips of any asset end up in retail hands, it's basically the last leg of the race, and you know how that ends.