Why USD pegged stablecoins are slowly losing value (and how to preserve purchasing power with stables like Silk)
ICI’s AI generated summary:
- USD pegged stablecoins are weakening due to the slow weakening of the US dollar.
- People haven’t connected the weakening of the US dollar with the stable coins they rely on.
- There is a lot of fear being spread in the search for attention and clicks.
- Stablecoins pegged to the dollar are losing purchasing power
- The dollar’s decrease in purchasing power affects stable coins
- This impacts the 1.2 billion people globally who use stablecoins
- USD stablecoins are weakening due to devaluation.
- The dollar has devalued over time due to increased supply.
- It’s important to be aware of the reality and consider better alternatives.
- USD pegged stablecoins are weakening
- The US dollar has lost over 99% of its purchasing power in the last century.
- U.S. banks can issue/print new money as debt without limit due to zero reserve requirements.
- World is de-risking from USD
- Printing money to service international debt is a concerning threshold
- Ray Dalio suggests a noteworthy shift in sentiment away from USD
- BRICS alliance creating gold-backed index currency
- Historical currency transition takes 10 to 15 years
- BRICS alliance represents 40% of global population and one-third of global GDP
- Using stablecoins as a hedge against USD weakness
- Stablecoins are back tested to outperform the US dollar, providing a potential alternative for preserving purchasing power
- Balancing purchasing power on a single point like the US dollar may not be the most effective strategy
- Commodities and assets still include UST but not the whole pie
- Silk is one example of this
- Consider sharing the video to help others protect their purchasing power
