While stablecoins are often touted as a reliable medium of exchange, I believe they come with significant drawbacks that undermine their effectiveness. The assumption that they minimize volatility is misleading, as they can still experience substantial price fluctuations, especially in times of market stress. Furthermore, the reliance on underlying assets to maintain their value raises concerns about their stability and transparency.
Additionally, the promise of instant liquidity and cross-border payments often falls short in practice, with transaction delays and high fees still prevalent in many networks. Relying on stablecoins for fractional ownership models could lead to complications and regulatory issues that have yet to be fully addressed. Overall, I think we need to be cautious about the potential risks and limitations of stablecoins rather than viewing them as a panacea for the cryptocurrency market.