HOW STABLECOINS PLAY OUT

Summary from the TLDR Crypto newsletter

Stablecoins inadvertently support US monetary policy by creating global dollar demand through cryptocurrency trading, enabling the government to fund massive deficits through money printing. This printed capital flows primarily into AI development, which is viewed as critical for maintaining US economic dominance in competition with China. Investments should focus on crypto infrastructure ("shovels"), including stable blockchain networks, exchanges, and major cryptocurrencies like Bitcoin and Ethereum, rather than speculative tokens that primarily serve as liquidity-churning mechanisms. AI-driven media will amplify this cycle by encouraging more retail participation in onchain trading, ultimately reinforcing dollar demand through stablecoin usage.