Could stablecoin eventually overshadow Bitcoin usage

[Dogedegen]

Something that has a completely different function than another thing does not overshadow it.

This is the correct framing. Stablecoins are the digital delivery mechanism for fiat. Bitcoin is the exit from fiat. Asking if stablecoins will overshadow Bitcoin is like asking if better roads will overshadow the destination. The road gets you there faster. It does not replace where you are going.

At least you get it! A lot of the replies here are completely missing the point or introducing ideas or numbers that only confirm that they did not understand the topic. Even if stablecoins had a bigger market cap than Bitcoin for example that again does not mean anything at all, fiat's market cap is huge. While some countries are pursuing a nightmare of centralization known as CDBCs, maybe other places like USA can take a different path and try to digitize fiat with privately issued stablecoins. For now we have not seen large moves that suggest this, but they seem to like Tether and even more USDC.

As you pointed out, stablecoin like USDT are used more for transactions and payments. Meanwhile, we are using Bitcoin as a store of value.
Clearly, they are two different thing and serve different purposes. How can we claim that Bitcoin has outstanding advantages?

This is false, don't make up stuff. I never used USDT to make a single payment, I use Bitcoin for payments regularly. Do not interpret the world based from your limited experiences and data. People who choose to pay something in USDT would never have chosen to pay in Bitcoin because these are completely different things. Paying with USDT is almost the same as paying with traditional fiat. People who support Bitcoin tend to hate such concepts because they are a backdoor scam aimed at moving the masses away from the ideas of freedom.

[LFC_Bitcoin]

Well no, because stablecoins are essentially digital fiat. The same problems that exist with fiat currencies like money printing and inflation exist with both.

Bitcoin increases in value over time. Things priced in Bitcoin get cheaper over time. Fiat currency and stablecoins are the opposite, your purchasing power dwindles over time.

[Findingnemo]

I skipped the wall of text...

USDT or stable coins in general got more daily trading volume than bitcoin for a while that shows more people are using it but their usecase is mainly for the trading than anything else and in certain parts of the world they might use it as an alternative to their volatile fiat currency but these are temporary reason, while bitcoin is pretty much strong in the decentralization.

[HustleZ]

[…]

That’s actually a great question.
We all talk about bitvoin that its this and thst etc but in the reality most of hold their money in stablecoins (USDT) i myself when need my funds to be out of the volatility keep it in USDT but imo it doesn’t overshadow bitcoin. The people that are here for just profit and not for using BTC as a currency use stablecoins as they dont have much faith in BTC but the real investors that define BTC use BTC in everyday and not stablecoins and that is what matters.

[Stalker22]

That’s actually a great question.
We all talk about bitvoin that its this and thst etc but in the reality most of hold their money in stablecoins (USDT) i myself when need my funds to be out of the volatility keep it in USDT but imo it doesn’t overshadow bitcoin. The people that are here for just profit and not for using BTC as a currency use stablecoins as they dont have much faith in BTC but the real investors that define BTC use BTC in everyday and not stablecoins and that is what matters.

Stablecoins and Bitcoin are not really trying to do the same thing.  USDT works like the money you use every day because it is predictable, while Bitcoin is more of a decentralized asset class.

But let me push back a bit on that last idea: do you really think that real investors use bitcoin for daily expenses?  Since the reality suggests that people generally consider bitcoin to be some kind of digital gold which is stored rather than spent, the most loyal bitcoin investors might be those who refuse to use stablecoins even in case of a crash.

[Danica22]

As you pointed out, stablecoin like USDT are used more for transactions and payments. Meanwhile, we are using Bitcoin as a store of value.
Clearly, they are two different thing and serve different purposes. How can we claim that Bitcoin has outstanding advantages?

This is false, don't make up stuff. I never used USDT to make a single payment, I use Bitcoin for payments regularly. Do not interpret the world based from your limited experiences and data. People who choose to pay something in USDT would never have chosen to pay in Bitcoin because these are completely different things. Paying with USDT is almost the same as paying with traditional fiat. People who support Bitcoin tend to hate such concepts because they are a backdoor scam aimed at moving the masses away from the ideas of freedom.

Similarly, do not judge the world based on your own limited experience. Because, in fact, the vast majority of people use bitcoin as a store of value and most use USDT for payments. Very few people like you use bitcoin for payments. That is why the development of stablecoin in the payments sector is accelerating rapidly and becoming a top priority for businesses, instead of Bitcoin.

Do you have any data to prove that Bitcoin is used more than stablecoin in payments?

[Sammye3]

Stable coins serve a different purpose to maintain stability while bitcoinis mostly for investment purposes acting as a store of value. Bitcoin protects investors from the issue of inflation and other governmental policies being more decentralized than the stable coin.

Both play a vital role and are important to ease transactions and investment purposes and should not be compared but rather discussed separately with its benefits. Stable coin are used mostly for transactions over bitcoin but Bitcoin would always serve as a store of value and a means to avoid inflation, that would never change.

[Synchronice]

What are the most used cryptocurrencies for making transactions? AIs don't give me the best answer and Google also doesn't help. One AI says that USDT is the most popular for making transaction while ChatGPT says that Bitcoin is still the number one. Gemini also says that Bitcoin is the number one.

Anyways, stablecoins like DAI, to my mind, can overshadow Bitcoin usage in terms of making transactions but the market capitalization of Bitcoin is so huge that no coin can beat it anytime soon and potentially in the future too. Where Bitcoin shines is the fact that it's the only one, truly decentralized cryptocurrency (do you know who is the creator? Satoshi? But who is Satoshi? Nobody knows and will never know).

[Smartprofit]

As far as I know, stablecoins are already being used for transactions more often than Bitcoin. USDT is especially popular for this purpose. 🙋

Therefore, it can be said that stablecoins have already "won" over Bitcoin. Moreover, the US administration is planning further development of stablecoins (they abandoned the idea of ​​introducing a central bank digital currency in the US). Therefore, in my opinion, stablecoins will be used even more frequently in the near future.

However, Bitcoin has two competitive advantages in this war... First, USDT is much easier to block. Transactions on the Bitcoin network are still uncensored (although I read that the mining company "Mara" previously attempted to censor Bitcoin transactions). Second, Bitcoin is considered digital gold, meaning it is a store of value. Its value grows over the long term. Therefore, Bitcoin will likely be used for long-term projects.  Stablecoins are not suitable for these purposes (especially now that they cannot generate interest income in the US).

[UmerIdrees]

Unless you've been living under a rock, you should know that USDC and USDT have already eclipsed Bitcoin usage.

The fact that everyone is accepting payments in at least one of those coins make them attractive coins to hold.

Actually these stable coins resembles the fiat currencies and it is just like your holding up paper currency and now your holding a digital dollar. Also since the price of these stable coins usdt and USDC remain constant so people prefer them over bitcoin for the daily buying and selling of goods and services. CBDC issuance by the government also promotes them and people see them as a digital dollar

People prefer to store bitcoin for long term as a store of value and use usdt instead for day to day transfers and transactions.