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Tether co-founder issues blunt warning on Bitcoin as a currency
When Reeve Collins first encountered blockchain technology in 2013, he recognized a revolutionary tool capable of moving money globally and instantly. However, he also identified a significant barrier to mainstream adoption: the only asset moving on these networks was Bitcoin. According to Collins, the very nature of Bitcoin makes it unsuitable for the roles traditionally held by money.
"That's been the challenge of Bitcoin," Collins explained in a recent interview with Sujal Jethwani.
The insight that led to Tether
This realization eventually led Collins to co-found Tether. He saw that while the blockchain was a groundbreaking invention, it lacked a stable unit of account to make it practical for business.
"There's this amazing new way to move money, but the only kind of value being transacted with was Bitcoin," he said.
The solution was to create a digital version of the world's most trusted asset. Collins described the process of formatting U.S. dollars to exist natively on the blockchain.
Without this stability, he argues that the broader industry would remain stuck in speculation rather than actual utility.
"No. There's very few financial systems that could survive with something that's super volatile," Collins stated.
"So without a stablecoin how are you going to actually do business? Because a lot of times you don't want to just speculate on a currency or speculate on an investment. You want to transact. You want to conduct business. To do that, you have to have a stable currency."
Why volatility kills the currency dream
Even as the market has matured, Collins maintains that Bitcoin’s price fluctuations prevent it from being used for everyday purchases or pricing goods.
For him, the asset functions differently than a medium of exchange.
"Bitcoin will be volatile," he said. "It's never going to happen because it's volatile. It just doesn't make sense as an actual currency."
When asked if consumers will eventually use digital stablecoins for routine errands like grocery shopping by 2030, Collins expressed total certainty.
Unlocking the true potential of the rail
Ultimately, the real innovation for Collins is the blockchain "rail" itself, rather than the coins first associated with it. He believes the technology's true potential was only unlocked when it was applied to stable, reliable money.
"Blockchain was a very novel technology," Collins concluded. "So we formatted dollars to work on it. That's when the real potential opened up."
This article has been published in thestreet.com via Yahoo News.
Tether co-founder issues blunt warning on Bitcoin as a currency
When Reeve Collins first encountered blockchain technology in 2013, he recognized a revolutionary tool capable of moving money globally and instantly. However, he also identified a significant barrier to mainstream adoption: the only asset moving on these networks was Bitcoin. According to ...
finance.yahoo.com
