Hey, sorry for hijacking your thread!
Ownership of ADA is perfect for expressing your involvement in the Cardano project. Why would you need stable coins for that?
Ok, let’s say the financial sector and the government decide that from now on money issuance is not a tool for stealing money from the general public, but a tool of price stability. Nice! The only fair way to do this would be to emit newly issued money to the general public directly. So when they issue new money they don’t lend it to whoever they see fit, but distribute it to the public somehow.
Two question rises: how much should they issue and how to distribute it? What is the good that’s price is the reference, that should be fixed? Grapefruit? Banana? Aluminum? Computers? Oooopsss… Money can’t be stable, since the price of different goods change individually. Yeah then create price indexes, yeah! Cool, now we dance! We can play with the price indexes, so if we the super democratic, altruistic, goodwill champions will have a tool to say how much money need to be issued. “Ohh, food prices went down! That’s terrible! Everybody will suffer! Print money now, that will solve the problem as it always does! Let’s make aluminum relatively expensive!” Or cheap, or whatever! This makes no sense!
But let’s look at the other question! How we distribute the newly issued money? (Of course in practice we never do, since money issuance is about stealing from the public and not price stability.) If we give it to the citizens of the issuing country evenly that’s a nice social nationalistic gesture, penalizing foreigners. So we distribute it proportionally to existing holdings. Yeah, that’s better, but does it makes any sense? Can any government do that, find every holder of their currency and give them some? No. And for what? Relative price fluctuations won’t go anywhere. It’s much better if you put this effort into something meaningful, like fair taxation and clever social spending.
To be honest, I don’t worry too much. I think Bitcoins real problem is sustainability and arrogance. It’s already hurting them, and their bad reputation also bleeds onto other crypto projects.
I think no currency is perfect, never was, never will be. The question is where you put the trade-offs in your design. I personally see Bitcoin as to be overly fixated on security. I guess they will come up with some solution if the equilibrium you are analyzing starts to sway. Yeah, they’re pretty conservative, they change slowly, but it’s not that they do not change at all. If it turns out to be a real problem, they will act.