- Cardano founder Charles Hoskinson believes despite the uncertainty surrounding algorithmic stablecoins they may be key to Satoshi’s vision.
- In response to USDC depegging, Hoskinson argued that banks will let users down as long as they are fractional reserve and algorithmic stablecoins are long term.
- Despite Terra’s UST collapse, Hoskinson is bullish on algorithmic stablecoins like Cardano network’s Djed.
Cardano network’s founder Charles Hoskinson is bullish on algorithmic stablecoins despite Terra’s UST collapse. Hoskinson believes stablecoins are the only ones that are key to Satoshi’s vision for Bitcoin.
Also read: Can the collapse of Silicon Valley Bank fuel the China coin narrative?
Charles Hoskinson believes algorithmic stablecoins can realize Satoshi’s vision
Bitcoin creator Satoshi Nakamoto’s vision for the largest asset by market capitalization is key to the crypto ecosystem and its participants. Amidst the ongoing uncertainty in crypto, following the depeg of Circle’s stablecoin USDC and several other stablecoins, Hoskinson believes that algorithmic stablecoins like Djed could realize Satoshi’s vision.
I still firmly believe that algorithmic stablecoins long term are the most essential research stream to fully realize the original vision of Bitcoin. Banks will always let you down as long as they are fractional reserve. https://t.co/zeQVSzhuaI
— Charles Hoskinson (@IOHK_Charles) March 11, 2023
Charles argues that cryptocurrencies like Djed are the most essential research stream to fully realize Nakamoto’s plan for Bitcoin. Banks are fractional reserve and this makes them susceptible to “bank runs.”
Algorithmic stablecoins are designed to hold their peg through mathematical equations, and are typically uncollateralized. Djed is an overcollateralized stablecoin in the Cardano ecosystem, and an algorithm controls its supply.
In the face of tumultuous events since the past week, Djed has maintained its peg and traded at a premium, at $1.01 while USDC, FRAX, DAI struggle to hold their peg.
Hoskinson’s comments are in line with BitMEX co-founder Arthur Hayes’ recommendation that crypto market participants move away from stablecoins pegged to the US Dollar and fiat currencies. Hayes introduced the NakaDollar (NUSD) as the solution.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ripple whales prevent XRP decline after soaking $4 billion in sell pressure from realized profits
Ripple's XRP is down 5% on Tuesday after news of South Korea declaring martial law sparked a surge in selling activity and significant profit-taking among investors. However, whales have stepped up buying pressure as the token looks to stage a recovery.
Paul Atkins shows reluctance to replace SEC Chair Gary Gensler
Donald Trump's transition team is yet to find a candidate to replace Gary Gensler as SEC Chair in January. Paul Atkins, the favorite to replace Gensler, has reportedly shown reluctance toward the position. Other top choices for SEC Chair include Teresa Goody Guillén, Brian Brooks and Robert Stebbins.
Crypto Today: BTC holds $95K, Cardano sets $700M record, Tron and Avalanche advance.
Bitcoin price consolidated around the $95,000 mark on Tuesday, as traders continue to rotate profits towards the altcoin markets. Positive sentiment surrounding potential altcoin ETF approvals in 2025 has sparked a major accumulation wave across the altcoin markets.
Dogecoin Price Forecast: Traders move $380M as DOGE mirrors Bitcoin’s pullback
Dogecoin price continues to consolidate below the $0.40 level on Tuesday, down 16% within the daily timeframe. After multiple failed attempts at breaching $0.50 over the past week, speculative traders have moved to scale down their DOGE positions.
Bitcoin: A healthy correction
Bitcoin (BTC) experienced a 7% correction earlier in the week, dropping to $90,791 on Tuesday before recovering to $97,000 by Friday. On-chain data suggests a modest rebound in institutional demand, with holders buying the dip. A recent report indicates BTC remains undervalued, projecting a potential rally toward $146K.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.