[bhouston]

Much of crypto, such as NFTs, Ethereum and Bitcoin, is based on consensual reality that these tokens have value because there are no underlying assets. As long as people believe they are a store of value they essentially are. Until at some point people lose faith and then they do not hold value.

In fact stable coins in theory are one of the least scammy parts because they have a real value as long as there are not outright scams (of which many of them are.)

[addicted]

In practice, stablecoins will plummet to 0 if a central bank decides to offer a dollarcoin or a yuancoin or a Eurocoin.

[bhouston]

There is a Yuancoin already btw. And there probably should also be an official US and Euro digital coin as well. But I do not think these alternatives will go to zero, rather they will act like ETFs, as they sort of do now. If they are collateralized properly, they should be fine.