Centralization Breeds Demand for Decentralization

Stablecoins inherently carry risks of centralization and failure due to their single points of failure, political risks, and counterparty risks, contrasting with Bitcoin's decentralized nature. As stablecoins become more centralized, they inadvertently highlight the advantages of Bitcoin, drawing increased attention and demand towards it. If Bitcoin fails to establish itself as a medium of exchange, it risks being overshadowed or co-opted by layers built on top of it, leading users to unknowingly engage with derivative instruments rather than the core asset. This dynamic mirrors the historical context of gold, where people often used derivative forms without realizing the implications of supply inflation.