Stablecoin! The disease is spreading. We'll make up something, tie it to the dollar. It is safe. Of course, if tied to the dollar, what is the benefit? This is expanding way too quickly. Some don't want to be left behind because there is nothing to lose!
And that is the mindset that leads us to economic calamities.
The real reason coins can't tie into normal financial markets, really, the reason they are opposed by financial institutions and attacked by finance rags, is because you can't lend more of a coin than you have.
The reason the wealthy will not generally use it except as an
intermediate trade currency is because banks cannot poof more into existence as they need to in order to do whatever.
The mechanism of money creation or destruction is flawed for most digital currencies AND fiat currencies, and this IS a flaw of trustless ledgers in general: mostly that however much "tear" there is between the trade currency and the
market currency will have to be absorbed by the trade economy, and it creates a weakness in the overall economy having these currencies separate with respect to speculation.
This is all mooted by the fact that power structures that exist today will never adopt a coin that is not strategically broken in their favor; the sorts of people who don't play stupid cheater games are incredibly rare, and
they still wear out over time when put to hard use.
Only when the people running the game are entirely outside it's rules and play can the game be stood up honestly.
Nobody can be outside the game of trade on the stuff we make ourselves from, but going 'trustless' is ultimately what we are going to have to do, with respect to our currency. That means figuring out a ledger coin that has more ideal features for the benefit of everyone.
Ideally, it would be a coin whose decimal point shifts over time (having a log scale impact on higher amounts, essentially vanishing from pockets or "decaying"), and which accrues in the pockets of each individual equally.
Then when someone wants to hire someone else, they are really asking to pool their discretionary interest resources into a trust to get some specific goal accomplished. Then, that way, those who want that goal's fruit more than the people who contributed their own leverage towards the goal end up making whole, plus some margin. Those who put together their resources and successfully provide a product people want more than the value of the resources they but it with them get outsized power. I think there should probably be be room in such a design for increasing stipends to people whose income overcomes their stipend, but in a way that doesn't penalize people below a certain threshold (like an asymptotically decreasing additive bonus, rather than a bonus multiplier).
Putting together a design document for a currency that actually serves all those purposes using a cryptological ledger mechanism is a HUGE undertaking, and the expertise necessary to do that may not exist in any one or even any five people. It may not even be possible to accomplish the goal, for humans, because the devil will always creep into the dark corners of the details, seeking a back door advantage, and no government would condone making themselves powerless to pick winners and losers in economics through policy change for political purposes.
