Popular

Senior Coin Metrics analyst breaks down everything you need to know about stablecoins

Episode 35 of Season 2 of The Scoop was recorded remotely with The Block’s Frank Chaparro and Nate Maddrey, senior research analyst at Coin Metrics.

Listen below, and subscribe to The Scoop on AppleSpotifyGoogle PlayStitcher or wherever you listen to podcasts. Email feedback and revision requests to [email protected]

This episode of The Scoop is brought to you by Bitstamp, the original global cryptocurrency exchange. Since 2011, Bitstamp has been a cornerstone of the industry, earning the trust of over four million individuals and top financial institutions looking for a reliable trading venue.

Whether you’re trading on our web platform, mobile app or industry-leading APIs, Bitstamp gives you the professional-grade tools you need to execute your strategy. Download the Bitstamp app or visit Bitstamp.net/Pro to learn more and start trading today!

advertisement

When Bitcoin emerged, its white paper touted a myriad of use cases that had the potential to rock the traditional finance world.

But the idea of using an asset that could severely fluctuate in value as a medium of exchange doesn't quite make sense to some. This, says senior Coin Metrics analyst Nate Maddrey, is why we have stablecoins.

On a previous episode of The Scoop, Martin Chavez said Bitcoin doesn't qualify as money in his book — it's a commodity. On this week's episode, Nate Maddrey breaks down how stablecoins were a reaction to this problem long before they were a trading tool.

"I think it's important to note that stablecoins, they capture all of the benefits or most of the benefits of something like Bitcoin where it's censorship-resistant...but it has that relatively stable price and that unlocks just a whole bunch of new use cases," said Maddrey.

Tether was the first in 2014, but since then, many others have followed suit. On this week's episode, The Block dives into the history and mechanics of stablecoins with Maddrey leading the way, discussing:

  • The different categories of stablecoins and why most follow a so-called "Tether model"
  • How the Tether controversy happened and why the cloud of concern has somewhat dissipated
  • Why calling them "stablecoins" may be a misnomer depending on what the word "stable" connotes 
  • His take on the growing USDC supply
  • How the stablecoin world will affect the decentralized finance (DeFi) movement

© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Trending Stories

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

SEC said to allow first bitcoin futures ETF to trade in US: report

The U.S. Securities and Exchange Commission is said to be allowing the first Bitcoin futures exchange-traded fund (ETF), per a Bloomberg report. The publication said in a report on Thursday night that the U.S. regulator “isn’t likely to block the products from starting to trade next week,” citing people familiar with the matter. The report […]
Read Full Story
Oct 15, 2021, 2:54AM UTC
More