In the cryptocurrency sphere, there is often the question of which cryptocurrency will “become money.” This means that it will be universally accepted as a means of payment, on par with the likes of the US Dollar or the Euro.
One of the biggest reasons why no cryptocurrencies have achieved this status yet is because of their price volatility. The lack of regulation in the cryptosphere leads to the prices oscillating organically, only due to supply and demand laws, instead of their value being pinned down by a regulatory body.
From this obstacle, often perceived as the biggest one, the idea of stablecoins was born: cryptocurrencies that retain a single value. This would, in theory, make them the strongest contenders for “real” money, which means they would be closer to mass adoption than other, more traditional cryptocurrencies. However, a number of stablecoins are actually emerging on top of Ethereum’s network in the form of ERC20 tokens. This means they’re using Ethereum as a basis for their cryptocurrency, instead of building their own blockchain from scratch. In turn, below the surface, those stablecoins actually use ether (ETH) for transaction fees, which means stablecoin growth could mean more demand for ETH as time goes on.
On the other hand, people could simply be content with using those stablecoins without a care for what they actually run on - similar to how chocolate demand doesn’t necessarily increase the demand for cocoa, for example. The situation might yet change, but for now, these two are the biggest contenders to the “money” throne.
