Purchasing power of the US. dollar over time
![](https://www.visualcapitalist.com/wp-content/uploads/2021/03/Purchasing-Power-of-the-U.S.-Dollar-Over-Time.jpg)
This chart deserves 3 karma points
![Cheesy :D](https://www.altcoinstalks.com/Smileys/default/cheesy.gif)
How wonderful...
I will use it!
Thanks tbc!
I meant in my post, that if you have to choose between US. dollar and stable coins that peg their values to US. dollar, choosing US. dollar will be better.
Both US. dollar and stable coins are inflationary but only stable coins can lose their pegs. Like if you have 1 USDT, in theory it equals to 1 US. dollar but when USDT peg is lost, your 1 USDT can become 0.1 US dollar. Terrible.
I understand your point.
I can make the same point ($ is better than USDT) from another angle: $ is legal tender in the USA: US sellers are obligated to accept $ as a means of payment.
USDT is not legal tender, so sellers can refuse to be paid with it.
How can a company guarantee the peg?
Backing their stablecoins 1:1 with what their stablecoins are pegged to.
So, how can a company guarantee that their $-backed stablecoins are pegged to the $?
Backing each stablecoin with 1 $
How can a company guarantee that their gold-backed stablecoins are pegged to the price of a gold unit?
Backing each stablecoin with 1 unit of gold.
Why are audits - regular audits made by an independent company - so important?Because they guarantee that the stablecoins are backed, i.e. that the peg is not in danger to break down.
Why Kinesis is better than Tether Gold?
![Cheesy :D](https://www.altcoinstalks.com/Smileys/default/cheesy.gif)
Because Kinesis let their metal get
audited regularly - each 4 months - by an independent party, Tether Gold don't.