The currency of crypto

Original thread: https://twitter.com/SBF_FTX/status/1427179527906611201

The 24 hour volume of the biggest centralised exchange hit 620,587 in the past 24 hours (spot). For FTX it is 205,706. The data stems from Coingecko. Anyone that has been in crypto would find these numbers odd. It is only when BTC is added behind the number, that they start making sense. When opening the Coingecko (or basically any website that is crypto related) you will only find USD denominated prices. Eventhough massive amounts of crypto is traded in countries that have a different fiat than USD (like China and Europe).

USD is everywhere

Basically everyone mentions the USD value of BTC when it comes to support and resistance. For example, 48k was a though resistance to crack, same as the 64k (on a high time frame). The biggest markets on most exchanges - you guessed it - are denominated in USD or in USD variants. The highest coin by volume traded... is USDT. Which is of course, backed by USD. There are many more stable coins rising. One thing that strikes me and probably anyone else, is that most are USD backed. Europe and China both have immense markets, they have not produced many EUR or CNY backed tokens or coins. Even gold is not that common. Only major exception are the spot market in Japan and Korea. But that has to do more with legislature and capital protection than anything else.

USD is the worlds currency and remains so for the forseeable future

Looking at the list of top stable coins and you will have a hard time finding any non-USD backed coin. USD has become the standard in the industry. It would be understandable to have more stable coins (EUR, CNY, KRW, JPY). However, it would not make much sense when no one would be using it, as they have USD(T/C). Or any other stablecoin. When trading crypto and stacking sats, no one can be bothered by what the fiat value is. When it comes time to cash out or pay with crypto, the value is very important. Going on a shopping trip with 1 LTC can buy you various kinds of product on one particular day depending on the price. The USD price remains stable.

Dethrone USD?

The industry accepted USD as the standard and that is not necciceraly a bad thing. Humans crave clarity and if USD is the way to go for nearly everyone, it is the way to go. There is up till now no real alternative to USD in the world. There are countries that are trying to build a better framework than the USD. Think of China and Singapore. But that is a long run until they can catch up, let alone take over the USD. Most spot exhanges in the United States of America are actually the best when it comes to safety and trading. The regulatory framework around the USD is sturdy and frankly, it works. Until there is a better alternative, we gotta live with the USD being the main standard in the industry.