Mad_Cyril Stablecoins were created to offset the volatility of holding crypto while staying withing the crypto ecosystem, for that they needed an asset that theoretically is relatively stable like the US Dollar.
For example, you buy a Bitcoin, at $20k, it pumps to $60k so you want to take profits, how would you do it? Well with a trading pair like BTC/USDC you would trade the Bitcoin for $60k USDC, therefore shielding yourself from any potential dips, like we’ve had in the same year.
There is always talk of what has intrinsic value, whether its crypto, gold or fiat currency, all of them only have value because collectively people/markets believe they do. Anything that doesn’t uphold this belief are ‘rekt’ no matter what value or assets they have, look at Credit Suisse or SVB. Biden said to any investors in SVB, sorry guys no bailout for you, all your investments are gone, only depositors in the bank were saved at the tax payers expense. Same in crypto or any other type of investment.
Risk appetite at the end of the day, crypto is highly speculative as an investment as its a completely new market, but there are some ground breaking innovations within the technology, like the immutable ledger, which means no-one can cook the books, every transaction from day 1 is recorded on the blockchain, you can’t create more magic beans out of thin air unlike fiat, hence why the governments don’t like it, they can’t control or manipulate it.
There is a tonne of scams in crypto much like the traditional world of finance, doesn’t mean it all is.
