Stablecoins outperform Bitcoin in wartime remittances

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Marshall Longing from Auradine shares his experience using USDT TRC-20 stablecoin instead of Bitcoin to urgently transfer money to an Iranian employee.

Marshall Longing – a "OG" in the Bitcoin community – recently shared a practical experience showing that stablecoin, not Bitcoin, is the most effective money transfer tool in conflict situations. The story emphasizes that in emergency situations like war, stability and quick convertibility make stablecoin superior.

The story shared on social media describes how Longing, currently a product development director at Auradine, had to use stablecoin to transfer money to an Iranian employee's family, amid escalating conflict between Iran and Israel. The employee was an electrician with relatives trapped in Tehran during the outbreak of hostilities, and he needed to send emergency support.

Notably, Bitcoin was not even considered an appropriate option. Longing shared: "We had to transfer money to her through a local broker. We had to send USDT in the TRC-20 standard, something I previously avoided like the plague. But after swapping, DeFi, Sushi, and various other things, she finally received cash."

Marshall Longing questioned whether stablecoin is truly more prominent than Bitcoin during conflict, and why local brokers prioritize stablecoin over Bitcoin. "Who can explain why Bitcoin cannot do this? During conflict, are people really worried about price volatility risks overnight?"

Why stablecoin is superior during crises

The community's response clearly highlighted stablecoin's advantages. The price stability of stablecoin, especially those pegged to USD like USDT, helps minimize short-term volatility risks – which is extremely important when the recipient needs immediate cash. The rapid transaction speed, especially through the TRON network (TRC-20), makes stablecoin ideal for urgent transactions.

Meanwhile, Bitcoin typically takes longer to confirm, not to mention transaction fees can be high and unstable during network congestion. Stablecoin's popularity during crises or hyperinflation is not a new phenomenon. In countries like Argentina, Venezuela, Bolivia, and many African nations, stablecoin is often used as an more accessible "replacement USD" compared to official foreign currency.

Longing concluded: "A truly surreal experience. I feel I need to learn much more. Bitcoin is clearly not a universal solution." This experience shows that in emergency situations, practicality and efficiency in converting to cash can be more important than Bitcoin's philosophy or long-term value storage potential.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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