I think so-called "stablecoins", at least when what they mean is "going downward forever in value just like fiat", are silly.
The same concept applies to cash or digital banking money. The point of stablecoins are to bring the fiat concept on-chain - regardless of its value, it can benefit from being on-chain. Not to mention, while it's "going downward forever in value", it would only benefit Bitcoin to have a stablecoin backed by Bitcoin, on its own blockchain, to prove immutably that this is the case and to be able to measure the rate of such in the long term (especially if the stablecoin gains enough usage on the Bitcoin chain).
A far far better idea is simply to build super-strong buy-sides for bitcoin itself, so that basically it will never be able to go down in value except maybe momentarily and only a small amount, as all its trading-pairs will have ever-stronger buy-sides eager for any fool to "dump" their bitcoin onto the buy-offers.
Just keep putting the proceeds of your buy-offers back onto the sell-side and the proceeds of your sell offers back onto the sell-side.
It is actually trivially simple, the only gotcha ever since cryptocurrency was invented has been fly-by-night and "oops we got hacked" exchanges.
Build vast columns of buy offers all the way down and you will love "dumps", the deeper dumpers dump the price down the more coins you are getting cheaper and cheaper and cheaper.
Also build sell-side insanely higher than you ever imagine price will go, because too many times over the years I have built my column of sell offers three times higher than I ever imagined price would go only to wake up one day or night and find it had skyrocketed to three times that.
With enough exchanges, and lets admit it bitcoin is on a lot of exchanges, profits are way higher than enough to see the fly by night exchanges and "oops we got hacked" exchanges as just a cost of doing business, a slight dent in total profits not an actual "loss". Especially since before very long every damn thing you have out on any exchanges anywhere is all pure profit to begin with, since long long ago already every fiat penny put in has been long long ago taken out multiplied gosh knows how many times...
-MarkM-
Just keep putting the proceeds of your buy-offers back onto the sell-side and the proceeds of your sell offers back onto the sell-side.
It is actually trivially simple, the only gotcha ever since cryptocurrency was invented has been fly-by-night and "oops we got hacked" exchanges.
Build vast columns of buy offers all the way down and you will love "dumps", the deeper dumpers dump the price down the more coins you are getting cheaper and cheaper and cheaper.
Also build sell-side insanely higher than you ever imagine price will go, because too many times over the years I have built my column of sell offers three times higher than I ever imagined price would go only to wake up one day or night and find it had skyrocketed to three times that.
With enough exchanges, and lets admit it bitcoin is on a lot of exchanges, profits are way higher than enough to see the fly by night exchanges and "oops we got hacked" exchanges as just a cost of doing business, a slight dent in total profits not an actual "loss". Especially since before very long every damn thing you have out on any exchanges anywhere is all pure profit to begin with, since long long ago already every fiat penny put in has been long long ago taken out multiplied gosh knows how many times...
-MarkM-
It seems you've either wildly misunderstood the post and/or the value proposition here, since you've yapped a lot about a concept that only exists on centralized exchanges (a part of what a bitcoin-backed stablecoin would reduce usage of).
The point of backing the stablecoin with Bitcoin is to ensure the value being transferred via the stablecoin are not funny money, and are backed by something both of value and on-chain. The point of having a stablecoin on the bitcoin blockchain is to enable trade and value transfer of USD that is backed by Bitcoin.
Making buy orders has zero utility for someone unless they want to buy bitcoin or support its market. That is not the intended audience of a bitcoin-backed stablecoin. Besides, before you make a buy order, what must you do? Use a bank or similar traditional service to deposit onto the exchange, then make the buy order...and if you want to buy something valued in fiat, or trade with someone who is looking for fiat (despite its value crumbling in the long term), then you must move to either another chain or back to the banking system. There's no solution native to the bitcoin blockchain.
TLDR - making a buy order does not serve any utility to anyone. You can't send a buy order, you can't trade with a buy order. You need a centralized exchange to make a buy order. The whole argument of "who needs a stablecoin just make a buy order" is a pretty irrelevant argument to what is being proposed in the OP.
