Tomiwa Akinpelu
Good day my people. First of all no be introduction, I go like make una no vex say this part 2 tey before I release am. I get some personal issues but I don dey alright. No be wetin you dey think, dem no serve me breakfast. (At least not yet)
Last time we yarn on top wetin stablecoins be, the types wey we get and how dem dey maintain stability. Today we go yarn the advantages and the disadvantages of these stablecoins.
Ikuzo!
Advantages
Stability
As we don talk am before, these stablecoins dey offer us normal paper money stability and the speed and effectiveness of the blockchain.
Cheap
Because say we fit use am as currency and e dey the blockchain, we fit use am buy and sell and the charges wey dey on top dey cheaper than that of banks plus saving your money on crypto saving platforms dey offer much more return than banks dey give us.
Speed
People wey dey work remote jobs sabi the wahala wey dem dey do before salary reach their hand because of the charges wey middlemen go collect and the time wey e go take before the money land.
You fit dey collect your normal $2,500 salary in USDT or BUSD and your money go enter in a matter of minutes, plus e dey very easy to liquidate (that is convert to cash)
Break in transmission
Abeg, before you go and tell your oga to send your July salary as crypto, do your own research, look for stablecoin wey you trust and be careful because dem no dey reverse money for crypto, and customer care no dey o. Koko na say, like oga Sabinus, shine your eye.
Ease
Like we talk before, if you be like me wey like Wareen Buffet eh, you go know say e dey advise to invest in assets like gold but where I wan see am? Plus I no fit say “oga abeg, I wan buy half gold” but with stablecoins i fit easily invest in any of these assets without holding them in real life.
Make we enter the disadvantages now.
Disadvantages
Counterparty risk
Remember say for fiat-backed stablecoins, we talk say the people wey dey issue am go get exactly the amount wey dey in circulation. The problem wey dey here be say what if dem wan run us street wey be say dem no get up to that money? Na counterparty risk be that.
Human Error
Stablecoins wey be say dey depend on one organization or auditor fit suffer from human error as per you know say nobody perfect. Dem fit no sight inaccuracies and potential problems
Ponzi Scheme
Dem fit run this one with algorithmic stablecoins wey be say the people wey dey run the project go dey create new coins only when new users bring money. If people stop to dey bring in money… the rest na SAPA phase two. No go lose guard comrade.
Centralization
Remember say one major reason why many people dey run to crypto na because of the ability of government to do and undo with your bank account but then we need to remember say for stablecoins wey be say na one organization dey in charge of giving the coin out, dem be companies for one country and this mean say dem dey answerable to the laws and government of that country.
If law enforcement say make dem freeze the stablecoin, dem go freeze am.
Ah, we don yarn a lot on top this matter. Thank you for reading to the end, na boss you be!
I hope say after all my talk talk you dey better informed now on this matter of stablecoins. I go like say make I dey collect my salary in stablecoins sha but na my own opinion.
You fit tweet your opinion to me, @OfficiallyXenos na my handle for the bird app.
Abeg, if you think say this article make sense, abeg just share am on any platform wey you dey.