One popular crypto analyst is eyeing a public blockchain protocol underpinning a suite of decentralized stablecoins as the possible solution for payments during a time of economic transition.
In a new strategy session, the host of financial education YouTube channel InvestAnswers tells his 417,000 subscribers why decentralized stablecoins might suit the future needs of both fiat and cryptocurrency users, with open-source Terra (LUNA) as a potential leading candidate.
[adinserter block="1"]“Our view on LUNA is as follows: I do love it. I do believe decentralized, algorithmic-based, fiat-pegged stablecoins are the future. They will be the mechanism by which all payments are made on the blockchain and perhaps in other parts of the world.
We’re seeing a dire need in the world right now for alternatives to fiat. Everybody wants an alternative to fiat, whether you are a government or an individual. The gig is up, as far as I’m concerned.”
The host goes on to discuss the future prospects of several specific stablecoins, namely USD Coin (USDC), Tether (USDT), and Terra’s own TerraUSD (UST).
“I do see UST and USDC as being the top two.
I am a little bit concerned about USDT. I think there is a skeleton in the closet somewhere. I don’t know what it looks like [or] how big it is, but one day it might come out and that would put UST potentially in second place.”
The crypto analyst concludes by noting that Terra’s crypto-based stablecoins do face several risks, including government regulation and the possible devaluation of fiat currencies.
“There are risks. Peg risk and regulatory risk are big issues. It also requires a stable crypto market to thrive… There is also heavy insider ownership, but demand fixes that. The next 24 months are critical.
But if they do pull it off, it could be huge.”
Terra is coming off a week of rocky price action with a slight downward trend. At time of writing, LUNA is up a fraction and trading for $79.77.
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