Is Bitcoin actually a real stable coin? It sounds a little bit odd to say the least, I suppose that this oddness might be because the Bitcoin is all the times compared, referred to and valued on fiat, which is a huge big mistake, and I will explain why.
But first let's see what gives stability to a Fiat Currency. The stability, was before 1971, related to gold-dollar standard which means that for every 35 USD you'll get 1 ounce of gold, with the USD being the world reserve currency according to Bretton Woods agreement signed in 1944. After 1971, Nixon throw to trash that credibility and fungibility that you can be able to get your gold back in return for your dollars. This action immediately has been transformed into "faith", a faith that the US Government will respect it's financial obligations. So, the faith that we have today in the World Exchange Currency (the US Dollar) is good enough to give stability, credibility and nevertheless fungibility? Absolutely NOT! And it's not only the dollar that doesn't give stability anymore, but every single fiat currency issued by every central bank in those countries that have them.
So, it wasn't you who decided these actions neither your ancestors, but an absurdly rich individuals and cartels that had the highest interest to keep and make more poor nations. Now comes the question, why the dollar or other fiat are not stable these days? It is because the banks have the ability to create money out of nothing, an infinite amount that is being backed by absolutely nothing. But wait there is more, in order to Keep the inflation at a "relatively good" limit the money supply can be increased or lowered. Aaaammm this so called inflation, it is actually a nonsensical way of describing theft. Yes it is theft, because if there will be zero "inflation" then it would no money, and this inflation is made through debt. These are somehow, weird concepts, but they are described by the bankers themselves, because, well, they invented this system.
In the form that it is right with low TPS is definitely not but with the Lightning Network can have up to 40 000 000 TPS, at least theoretically. Now, why Bitcoin it can be consider a stable coin?
1) It has a limited supply of 21 000 000. Cannot be changed and cannot be tempered with.
2) 1 BTC always = 1 BTC, now, tomorrow and in a hundred years. As you observed the value of the dollar always vary, this is the reason why it is completely unstable with a tendency of going to zero. How come? Well every time the bank issue more debt that debt is considered money and reduce either in half or more the value of your owned dollars. This can continue indefinitely because of those bank's abilities. The real problem here is that you will never know the true value of your fiat currency until will be to late to exchange it and you will realize that you have been scrued by the banks.
3) Bitcoin can never be compared and exchanged with fiat because it cannot interoperate, and because the latter it is not a cryptographic algorithm or consensus, nevertheless.The value that we see on exchanges is pure fiction!Why is that? Well when you buy a BTC basically you encrypt an digital asset, into a cryptographic line, which is a part of a block of transactions. That asset represents a Dollar, Euro, a house, a car etc. Those who have mountains of cash made out of nothing, have the greatest advantage over you... This is the reason Satoshi wanted his Bitcoin to be mined by the people's hardware, so that no fake currency would be created out of thin air but only through consumption of electricity and an actual proof of work. This way the whole network can be decentralised and free of greedy, evil bankers and corporations.
Unfortunately, he did not predict how technology would evolve and never actually thought that the BTC minting can have a greater hashing rate with GPUs instead of CPUs and later FPGAs and ASICs. Because of these ASIC machines, the network became somehow centralised, and mostly controlled by corporations, but this is a topic for another article.
Ok anyway, BTC, stable coin... right... so...
4) When a medium of exchange is utilised for a vast period of time, on the chart in hundreds of years and sometimes in tens of years, the chart would look like it is relatively stable in price. Bitcoin is only 13 years old but imagine that after 30 or 40 years, the price would become stable. If you go to https://onlygold.com/gold-prices/historical-gold-prices/ you will observe that from 1841 until 1932, the price of gold was 20 Dollars and 67 cents. That is what you can call stabilitythe gold price could be exchange with a real good price and was not inflated or over rated! Until the Wall Street screwed everyone through stocks, and the great depression came afterwards. In Bitcoin's case those who interfere in the code, will not make BTC anymore but something else, BCH, BCD (not BSV because is a fork of BCH) or copies of BTC like LTC etc.
5) Bitcoin cannot be destroyed. If paper money can be burned, or the fiat currency will be deleted from your bank account when the debt is paid back, the Bitcoin will be forever in the block chain, as long as even a single miner is online and as long as the internet exists. Just imagine that a property written on a paper can disappear, and the same property written on Bitcoin's blockchain can never be deleted by anyone, and you will safely pass it on to your children without being worried that they won't be recognised or banned by the future governments.
As for the fiat scamming situation I don't think there is too much to explain here. Explaining the obvious is a waste of time, just imagine that you can create something out of nothing, what do you call that, God-like powers or a pure scam, aka Ponzi scheme?
That said, how should you protect yourself against this system and the future one that will inevitably come:
A) Mine any reliable crypto and continue to mine it after the CBDC will be implemented world wide because you will not be able to buy cryptos after that. They, the bankers, will simply do not let you do what ever you want.
B) Buy crypto now while you can! It is a bear market so buy as much as you can when ever you can, the reason is the one mentioned above: CBDC...
So what do you guys think? Are these truthful ideas? Does indeed Bitcoin is a true stable coin and do you think that cash is trash and CBDC is even worse than that, because it generates absolute control over your finance?
Oh and BTW, this article is not a financial advise. Do your own research and then decide what you want to do in the future. Just hurry up, the time is passing so fast and you don't want to be caught in a crypto - fiat crossfire.
Take care out there!
