An overview of what is happening in the crypto markets, summarised daily by Crypto Finance AG Senior Trader Patrick Heusser in the market commentary.
Good Morning!
AMPL kept me awake last night. I did some more reading and also had a few discussions with traders and other financial professionals.
Is AMPL a Stablecoin?
Surprisingly, our first point of contention was whether or not AMPL is a stablecoin. After contemplating the two sides it makes sense to me that this is the basis for all further discussions and future developments.
Keeping things short and simple, here are the two sides (arguments) in a nutshell.
AMPL is a stablecoin:
This is the because the intention is to keep the AMPL versus USD price at $1.
AMPL is NOT a stable coin:
This is because the purchasing power (PP) keeps on being volatile.
I understand both arguments but I believe that in the long run they are both irrelevant. Let me elaborate on this:
When I first went down the crypto/blockchain rabbit hole, there was one thing that always bugged me. There are two parallel universes. The "real" world and the crypto space. I always had massive doubts that there would be a transition from one universe to the other. The worlds were too far apart and I could not see it ever happening (except maybe in a WWIII scenario).
The bridge between the real world and the crypto world
However, now with the launch of CBDCs (central bank digital currencies), I believe there might be a possible bridge between the two worlds. In the case of AMPL, I see conceptional use cases that certain central banks might implement rather than continue with the traditional tools, e.g. interest rates. Also, to return to the stablecoin argument: in my view this argument is misleading, since you are trying to keep it stable against another asset that you are trying to get rid of (or replace).
I have to admit that I have not been able to think everything through fully yet but I would like to see if any of this triggers meaningful and useful discussions.
