Are Stablecoins Blockchain’s AdEconomics Moment?

Today is a pure rambling, how should blockchain practitioners view the wave of stablecoins.

Now the dust is gone and the light is born, shining through the green mountains.

At present, stablecoins have shown signs of becoming a social consensus in the new era, which is not entirely a good thing. In 2022, a large number of metaverses in universities were established, and then DeepSeek was connected, and then to the current stablecoins, which are exactly the same.

A mobilization society, coupled with the boost of the bureaucratic system and TikTok, can easily make a certain technical narrative a national hot spot, and then add some positive ideology, such as industrial competition, or reverse social pull, such as the tide of reflection.

However, one thing is certain, stablecoins are indeed easy to be put into practical use. In fact, the combination of USDT+Sun Ge has already run in the vast ocean of Yiwu connecting Asia, Africa and Latin America. Although it is not visible, the submarine optical cable is also a channel.

Stablecoins are information products 3.0

Stablecoins will become a wave at a certain moment, just like NFT and inscriptions, and after the peak, there will be a mess.

It will still be the same as Omni/Kumasa/BCH, and everyone will be wondering, what are these, and USDT actually supported them.

Or it is a strange feeling. Although everyone is issuing stablecoins, BlackRock's entry seems to have nothing to do with me. It can only rush into "concept coins", just like the relationship between Trump's election and Sichuan University Zhisheng's daily limit, or like the relationship between Java and JavaScript, they have nothing to do with each other.

Looking at the previous encryption industry, there is a prominent feature and advantage - both ends are aligned, and there are opportunities.

• • Production side: There are many entrepreneurs, and the currency circle is a big stage. If you have a dream, come.

• • Consumer side: 10U deposit, unlimited leverage, and turning over may be at this moment.

In the current technological trends of mankind, blockchain is still the most friendly industry for ordinary people. AI, biomedicine, space industry, and embodied intelligence all obviously exclude ordinary individuals from participating in the production side. These industries hope that ordinary people will act as simple consumers.

Even if it is not individuals, even countries will be excluded from the competition. Sam Altman once believed that India and other countries basically cannot develop their own ChatGPT analogs.

Even if it is an attempt to combine with the currency circle, DeSci concepts such as Bio Protocol are all useless. Emerging industries often start with an investment of 1 billion US dollars. Ordinary people have no chance to participate in creation except working for them and contributing their consumption power.

In this context, stablecoins have become a representative application of blockchain. For the first time, people can use blockchain as the underlying infrastructure of their behavior without understanding blockchain and participating in token speculation.

From Web 1.0 web pages, Web 2.0 apps, to stablecoins in the Web 3.0 era.

The only question is whether stablecoins can allow ordinary people to participate in it, just like other blockchain tokens.

You bought 10U of Bitcoin, hoping that it would rise to 100U, but with 10U of stablecoins, it is difficult to convince yourself that it will appreciate, unless the US dollar is inflated, and the consequence is a decline in purchasing power.

In my opinion, the entry-level application of stablecoins is payment and settlement, but the screened user groups will come to the chain, which is the secret of the advertising system. Let's briefly trace back its mechanism.

Before the birth of the Internet, media economics noticed the problem of "content is not valuable". The big news that affects everyone, the converted newspaper subscription fees are basically difficult to cover the newspaper operation.

But newspapers still have to survive, and there are two ways, one is the subscription system, and the other is the advertising system.

Subscriptions sell exclusive news or indispensable content, such as financial news, which has developed into Bloomberg terminals today. Advertisements sell the attention of newspaper readers, and newspapers sell the attention of their readers to advertisers.

After the Internet emerged from the dot-com bubble in the late 1990s, it still couldn't solve the problem of profitability until Google introduced the advertising model into search results.

Users need to read the content of the advertisement first to obtain the content they want. Under the funnel model, even the position of SEO was born. There are definitely fewer newspaper sales practitioners than SEO, at least the big cryptocurrency exchanges are all standard.

Okay, now we are copying or cutting our feet to fit the shoes. What do stablecoins transform into?

Stablecoins represent purchasing power

I would like to put forward an idea of my own, which is very immature and is for your reference only.

Stablecoins provide a relatively unified pricing basis for non-tradable products around the world.

This is not difficult to understand. The pricing of foreign trade products is a global system, such as Apple, Steam games and even rare earths. Although there are exchange rate differences, they are calculable, tradable and arbitrageable.

However, non-export products, such as hairdressing services, local restaurants or manual labor, basically cannot participate in global pricing, so in addition to GDP, there is also the purchasing power parity index (PPP, Purchasing power parity), the most typical of which is the Big Mac index, which calculates how many McDonald's hamburgers can be bought with local wages in each country.

The world cannot use a unified currency, so physical indices are more reliable than US dollars. Even if it is only priced with purchasing power of 1 US dollar, but it can buy 100 secret hamburgers, then the living standard cannot be too bad.

Stablecoins happen to be used globally, at least in theory, which is more practical than simply priced in US dollars.

From the perspective of information technology development, stablecoins are the third generation of super species that are sweeping the world, because the currency itself can be productized, which is a deeper change than the Internet. Today's web pages and apps are so common that we don't think this is a rare progress.

Stablecoins are not a superset of blockchains, just like we can't say that TikTok is 5G or that Jianying is the mother of FFmpeg. From the previous gas-free transfer to the emergence of Stablechain, Converge and Plasma new stablecoin chains, they are more like the progress of Vue and React on handwritten HTML/CSS/JS.

Of course, everyone intuitively understands that V0 is more advanced than the front-end framework, and it is hard to believe that Stablechain, Converge and Plasma will replace Tron and Ethereum.

Before stablecoins, the problem of blockchain was that it could not find enough users. Too few user groups, especially few participants on the chain, made the chain a pure PVP game.

But! If stablecoins attract hundreds of millions of users, just like the scale effect of the Internet, then blockchain will have a real solid user group outside of speculation, enough to support normal operation.

Tron relies on the global USDT to run the network, which can keep TRX strong for several years. The core is that TRX must be used to buy energy, because there are really millions and tens of millions of people who use TRC-20 USDT on a daily basis, so it becomes profitable for a few people to hold TRX.

Conclusion

Of course, the hot spots in the crypto industry rotate very quickly, and it is difficult to say how long stablecoins will be popular. We are in it, and it is inevitable that we are overly enthusiastic.

If there is really a Web 3.0 dream, then the premise must be that most people use stablecoins in their daily lives. It can't be said that PUMP is all of Crypto, and most people still have to wait for UBI to come to the consumer end.