It can be argued that in many contracts, they actually wouldn’t want use the native coin, because the unpredictable changes (or increases, even if it is always an increase) makes them unsuitable for most uses. For instance, say you’d made a bet with someone about something that’s only going to resolve a year later. You want to know how much you’re betting, but if you bet in a native coin, you really don’t know how much a given quantity of that is going to be worth. The problem also comes up for contracts that use fines or collateral. That covers most contracts. So there are stable coins, that peg to the price of metal, or mirror the USD. I also came across a coin that multiplies or winnows in your wallet depending on how much its value changed over the course of a day so that it’s always worth roughly one USD. I’m still not sure how to feel about that one.
But, ADA is mandatory for paying transaction fees, staking (which currently gets a return of 5% per annum), and voting in the governance processes. Generally, I’d guess that a lot of people will decide to trade in, or hold, ADA, just because converting would be mildly inconvenient.
It can be argued that in many contracts, they actually wouldn’t want use the native coin, because the unpredictable changes (or increases, even if it is always an increase) makes them unsuitable for most uses. For instance, say you’d made a bet with someone about something that’s only going to resolve a year later. You want to know how much you’re betting, but if you bet in a native coin, you really don’t know how much a given quantity of that is going to be worth. The problem also comes up for contracts that use fines or collateral. That covers most contracts.
So there are stable coins, that peg to the price of metal, or mirror the USD. I also came across a coin that multiplies or winnows in your wallet depending on how much its value changed over the course of a day so that it’s always worth roughly one USD. I’m still not sure how to feel about that one.
But, ADA is mandatory for paying transaction fees, staking (which currently gets a return of 5% per annum), and voting in the governance processes. Generally, I’d guess that a lot of people will decide to trade in, or hold, ADA, just because converting would be mildly inconvenient.