USDC: Should Investors Treat Stablecoins as Infrastructure or Speculative Vehicles?

Stablecoins function as the backbone of cryptocurrency transactions, providing a stable medium of exchange in an otherwise volatile market. Unlike speculative assets, their primary purpose is utilitarian—enabling seamless trades without exposure to drastic price fluctuations. However, regulatory scrutiny and occasional de-pegging incidents blur the distinction between their operational role and perceived investment potential.

USDC exemplifies this duality. Backed 1:1 by fiat reserves, it operates as digital cash on the blockchain. Yet market narratives often focus on its billion-dollar valuations and exchange listings, framing it as a tradable asset rather than critical infrastructure. Investors must differentiate between its transactional necessity and the risks associated with collateralization and regulatory uncertainty.