So far, dollar backed stablecoins like Tether’s USDT or Circle’s USDC don’t pay any interest to holders of their coin. We think that is about to change in 2019.

When cash is gone, where will you turn to transact with a basic level of privacy? What money do you hold when negative interest rates start eating away at your bank account?

It seems to be a foregone conclusion these days that the market for money is winner-take-all. We look at several challenges for Bitcoin that work as counterforces to such consolidation into one money.

We will take a look at how professional arbitrageurs expand and contract the supply of a stablecoin based on the current demand of the market, how Dai’s model is different and why the lack of a professional arbitrage model makes Dai fundamentally unscalable.