It encourages people to lose their money due to extreme volatility and nobody uses it for anything other than speculative trading which also encourages people to lose money.
tokens like LUNA went to 0 and USDC, USDT and others depegged which isn't really convincing as a micropayments alternative, in fact it is extremely dangerous.
Tether is a fraudulent ponzi, USDC is not stable and is backed by meaningless attestations, Luna is, well gone all the way to the floor.
Even if we take USDC on ETH there exists the uncontrollable volatile gas fee tax which is pointless for micropayments.
'Stablecoins' (or 'stabletokens' are inherently fraudulent and dead on arrival and is only used to pump the price of BTC in the which is the case for Tether.
https://www.bloomberg.com/news/features/2021-10-07/crypto-my...
Stablecoins don’t need to be backed by anything to be stable. I agree with most of what you say, but that doesn’t actually refute my point that stablecoins are, in fact, more stable than most cryptocurrencies. They are more than stable enough to use for a payment aggregation layer for a few days.
I even agree with you about Tether being a fraud; I still use USDT every day (with that knowledge) because it is, well, stable. One day it won’t be, but most days, it is.
Yet USD is legal tender for US taxes and there is a shared interest in using USD rather than some risky unknown potemkin token like 'stablecoins', which nobody accepts or wants.
And you cannot pay US taxes with your stablecoins, so there's that.
> Stablecoins don’t need to be backed by anything to be stable...
So then we will get a LUNA situation of being backed by 'algorithms' then everyone is screwed when the token inevitably goes to zero.
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I know many, many people in many countries who accept stablecoins as cash-equivalent. I think perhaps you underestimate the market.