Why Stablecoins, Not Bitcoin, Will Dominate Global Transactions
Stablecoins are poised to surpass Bitcoin in dominance due to their superior utility in facilitating efficient, low-cost global transactions.Summary
CoinFund's David Pakman argues that stablecoins, not Bitcoin, will drive the real growth in digital currency over the next five years because they offer superior transactional utility.
While Bitcoin functions primarily as a store of value with a $2.3 trillion market cap, stablecoins already exceed Bitcoin's daily transaction volume, handling $146 billion compared to Bitcoin's $63.8 billion on a specific day. Stablecoins facilitate instant, peer-to-peer payments cheaply, unlike Bitcoin, which suffers from ten-minute block times, fees, and volatility, making it unsuitable for everyday use.
Stablecoins are powering global payments, cross-border remittances, and are expected to become the currency for machine-to-machine transactions driven by AI. Major fintechs like Stripe and Visa are integrating them, often making the underlying blockchain invisible to users. Furthermore, the U.S. administration supports stablecoins via legislation like the GENIUS Act to maintain the dollar's reserve status, suggesting that the total minted value of stablecoins could soon exceed Bitcoin's market capitalization.
(Source：CoinDesk)