How stablecoins quietly beat bitcoin at its own game

Web3 and Digital Assets - Web3 is emerging as the value layer of the internet, enabling ownership and direct movement of digital value, money, identity, and assets via blockchains [7][9][10] - The use cases for cryptographic assets, digital technologies, Web3, and blockchain are becoming clearer, especially in payments, money movement, remittances, and banking services, due to reduced friction and costs [4][6] - Stablecoins are seen as payment mechanisms that facilitate economic value transfer by on-ramping into local fiat, transferring value, and off-ramping back into local fiat, offering a more seamless process than traditional banking [21] - Blocks created a gold-backed stablecoin to act as a universal translator among various fiat currencies, addressing on-ramp and off-ramp problems in obscure markets [23][54][55] - The digital asset space is experiencing rapid growth, with use cases doubling or tripling in a short amount of time, similar to Moore's Law [13] Market Trends and Investment Strategies - The US market is considered bullish in the short, medium, and long term, similar to the outlook on digital assets [38] - The market has priced in geopolitical risks and anticipates resolutions, maintaining an overall upward trend [45] - AI is expected to continue its growth trajectory, with companies using AI tools to enhance their platforms and applications [61][62] - A balanced investment approach is recommended, including traditional industries like food, clothing, and energy, alongside AI and digital assets [62][63] - The market is anticipating potential interest rate cuts by the FOMC, which could further stimulate capital flow into equity markets and businesses [40][42] Regulatory and Economic Factors - A massive regulatory rollback across industries is seen as unleashing the dynamic capitalist power of the US economy [43] - The move by the administration into digital assets is expected to provide further impetus to the market [44] - Tax law changes, with lower rates for longer, are expected to positively impact the market until potential future repeal [43]