Let’s break this down simply. The latest Blockchain Coinvestors newsletter is mostly about how payments are being revolutionised by new digital money called stablecoins, and why this is a big deal.
Think of it like this:
- Just like we digitised messages and content with the internet, we are now digitising money.
- The way we pay for things now is old and complicated, like a tangled mess of wires. It’s often slow, expensive, and not very secure.
- The newsletter suggests that a better way to pay online would be something designed specifically for the internet – quicker, cheaper, and safer.
- Stablecoins are presented as this new, better way. They are a type of digital money that is often linked to the value of a real-world currency like the US dollar.
- Because they use the technology behind things like Bitcoin (called blockchain or distributed ledger technology), stablecoins can move value directly between people online without needing traditional banks in the same way. This makes them useful for things like sending money to family overseas or even very small payments.
- The newsletter highlights that stablecoin usage is growing very quickly, with transaction volumes already bigger than major credit card companies. Many people who didn’t have access to traditional banking can now use stablecoins.
- Tether is mentioned as a leading company in the stablecoin world.
- The newsletter believes that stablecoins are the future of payments and will pave the way for other digital innovations in finance. They expect more stablecoins to be created and used for different purposes.
- For the company that wrote this newsletter (Blockchain Coinvestors), this shift towards digital payments is a big investment opportunity.
In short, Blockchaincoinvestors argue that the current payment system is outdated, and US dollar-backed stablecoins running on blockchain technology offer a much better, internet-native way to move money around the world. This is seen as a fundamental change in commerce and finance.
Thank you to Blockchaincoinvestors.com for inspiration for this blog post