If we don’t, the fiat value of crypto will always be tied to the main entry and exit crypto’s, BTC and ETH.
If BTC goes down, the fiat value of your crypto will go down. (Unless your coin against BTC rises).
Fiat pairs will truly separate the good coins from the bad!
Edit: there has been a lot of negativity around this suggestion. I’m going to give reasons why this would truly help.
Firstly, BTC, LTC and ETH are all tied, yes. However, one of the reasons that they are is because investors, smart money and big money, looking to get in to alts will buy the cheapest entry crypto to trade for as much of the alt as possible, so the price of that entry crypto rises and stays in line with the other entry cryptos. Likewise, if someone is looking to sell their alt, they may trade it for the most expensive exit crypto and so when they convert to fiat, the price of their exit crypto drops and the big 3 stay in line once again.
In a bear market, yes, most will fall regardless. However, these huge swings in total market cap would be avoided as alts are no longer priced in terms of btc, so it would bring more of a sense of security to the industry. Hoddlers would also be able to hold firm and not see their portfolio in terms of how much btc is falling and then panic sell.
Fiat pairs would bring new investors in to the mix. Most people with a 9-5 job don’t want to set up accounts on multiple exchanges, spend time transferring and ensuring security and checking two different exchange rates. Why would they? Fundamentally, this is a huge reason why new money isn’t entering the space.
It would only be a good thing.
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