Satoshi Capital Research: Stablecoins Becoming the New Bank Account


According to a new Satoshi Capital research, stablecoins are dominating bitcoin, quickly developing into a major competitor to the traditional bank accounts.

The company states that calculations show that the total market opportunity of stablecoins is more than $18 trillion.

Functional Differences between Traditional Bank Accounts And Stablecoins

According to Satoshi Capital research, the functional differences between traditional bank accounts and stablecoins lie in speed, costs, and accessibility.

Whereas traditional bank accounts – both business and individual accounts – can only be accessed by customers of each respective institution and transfers come with high costs and processing times, stablecoins can be used across the board considering that it has open system architecture.

As long as one has a smartphone and internet connection, they can receive and send funds in stablecoins instantly without any considerable cost.

To better illustrate the difference in processing time and cost, Satoshi Capital provided a graph which shows that stablecoins win in both worlds.

Growth Of Stablecoins

Although Tether has dominated the market of stablecoins since it entered the market in 2014, 2018 saw several new entrants, increasing the total issued value of USD stablecoins to a whopping 92% by the end of the year.

This marked growth of stablecoins issued value from $1.4 billion on January 1, 2018, to $2.7 billion in December 2018. Among the new entrants included Gemini dollars, Paxos Pax, and TrueUSD.

The total volume of stablecoin transfer also grew significantly in 2018. For instance, the amount of tether sent that year was $109 billion, which is a 624% growth from the previous transfer volume in 2017, which only amounted to $15 billion.

What Are Stablecoins?

Simply put, stablecoins are digital tokens designed to represent fiat currencies and widely used using bitcoin-based technology – blockchain.

These digital currencies are stored and transferred using wallet applications. Their issuers are either regulated or supported by banking institutions, or from the actual banking institutions.

Still, A Long Way To Go

Although stablecoins have recorded impressive growth since the first – tether – entered the market in 2014, Satoshi Capital agrees that they still have a long way to go to compete meaningfully with traditional bank accounts.

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