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The Founder of BitMEX Dismisses the Need for Super-Mortgage and Algorithmic Stablecoins

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According to the news on March 9, Arthur Hayes, founder of BitMEX, wrote an article to express his views on the stable currency of the encryption industry. In …

The Founder of BitMEX Dismisses the Need for Super-Mortgage and Algorithmic Stablecoins

According to the news on March 9, Arthur Hayes, founder of BitMEX, wrote an article to express his views on the stable currency of the encryption industry. In the article, he believed that there was no need for the super-mortgage stable currency such as MakerDAO and the algorithmic stable currency such as TerraUSD. The former was inefficient, while the latter was risky. The real reason why the market tended to store stable currency was that traders were allowed to trade between legal tender and cryptocurrency, so whether the stable currency was centralized or not was not important.

Arthur Hayes, founder of BitMEX, said that a centralized Bitcoin based stable currency NUSD should be created

Analysis based on this information:


The article penned by Arthur Hayes, the founder of BitMEX, has shaken the cryptocurrency world as it dismisses the need for super-mortgage and algorithmic stablecoins. Hayes argued that super-mortgage stable currencies such as MakerDAO are highly inefficient and costly to maintain, while algorithmic stablecoins like TerraUSD operate on a high level of risk. These are two categories of stablecoins that have been touted as potential game-changers in the cryptocurrency world, but the founder of BitMEX had a different take on them.

Hayes offered his interpretation of why traders tend to use stable coins and found that it had little to do with their technical workings. Rather, traders seek out stable coins because they enable the trading of cryptocurrency with fiat currencies. As long as a stable coin can be freely exchanged for fiat currency, whether it is centralized or not is of little importance.

While Hayes makes a compelling argument, the need for stablecoins cannot be so easily dismissed. Stablecoins have emerged as a necessary tool for traders that wish to move funds in and out of cryptocurrency markets. The volatility of cryptocurrencies makes it risky for many traders to hold their positions in cryptocurrencies, compelling them to move the bulk of their trading capital into a stablecoin. Given the volatility of cryptocurrencies such as Bitcoin or Ethereum, the stability offered by stablecoins is crucial for many traders.

Centralization is another crucial issue when it comes to stablecoins. While centralized stablecoins have been around for a while, crypto enthusiasts have long sought a decentralized alternative. Decentralized stablecoins, as the name suggests, offer greater decentralization and autonomy. With decentralized stablecoins, there is no central issuer, no intermediaries, and no governing bodies involved. Trading with decentralized stablecoins embodies the true ethos of cryptocurrencies: giving users greater control over their money.

As cryptocurrencies become mainstream, the need for stablecoins will continue to rise. However, the debate over centralized and decentralized stablecoins will also become more divisive. At its core, the debate about centralization versus decentralization is about control, and how much control do we really want to put in the hands of issuers? The answer to this question is what will ultimately drive the adoption of stablecoins in the cryptocurrency world.

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