Disclaimer: Everything we write in "The Crypto Insider" newsletter is an x-ray of the industry as we see it, through the lens of publicly available information. We are not financial advisors. One of the most common confusions is related to the way we interpret the pricing of a crypto asset. Most people look at performance versus USD/USDT/USDC, but that's not native thinking for many reasons. First of all, because little money invested in crypto goes back to FIAT. Secondly, because the benchmark should not be an asset massively impacted by inflation like the dollar.
That's a fair point. Using native financial instruments to express the value of token such as $STANDARD does make a lot more sense. Nevertheless, as behavioural economists have shown, humans are not much of a rational being, are they? It's one of these things we're humans prefer comfort, even if it means getting a skewed/biased piece of information. Fiat currencies are still the means of exchange that we use in our day-to-day. We trade our time for it - at least most of us still do - only to have the flexibility to trade back for whatever makes us happy and fits our needs further down the line.
It would be slightly unproductive if not confusing to use other points of reference than fiat currencies, at least for the time being... until better solution gain traction relative to fiat currencies anyway.
That's a fair point. Using native financial instruments to express the value of token such as $STANDARD does make a lot more sense. Nevertheless, as behavioural economists have shown, humans are not much of a rational being, are they? It's one of these things we're humans prefer comfort, even if it means getting a skewed/biased piece of information. Fiat currencies are still the means of exchange that we use in our day-to-day. We trade our time for it - at least most of us still do - only to have the flexibility to trade back for whatever makes us happy and fits our needs further down the line.
It would be slightly unproductive if not confusing to use other points of reference than fiat currencies, at least for the time being... until better solution gain traction relative to fiat currencies anyway.