The recent situation with Circle and USDC highlights some important lessons about the role of stablecoins in the cryptocurrency ecosystem. While stables like USDC are useful as a medium of exchange, they shouldn't be treated as a replacement for Bitcoin or traditional banking.

Bitcoin is Bitcoin for a reason. It's the most fungible, liquid, decentralized, and secure cryptocurrency in existence. No other cryptocurrency has been able to match Bitcoin's level of adoption, network effect, and security. While stables may be useful for day-to-day transactions, they're not a substitute for Bitcoin's role as a store of value and long-term investment.

Stables are also not suitable for banking. The recent situation with Circle and USDC highlights the risks associated with relying on stablecoins for banking services. Stables are not backed by FDIC insurance or any other government guarantee, which means that they are not as safe or secure as traditional bank accounts.

Furthermore, the stifling regulations in the USA are making it difficult for American innovation to flourish in the cryptocurrency space. This situation creates an opportunity for someone to launch a true crypto bank, one that can offer the security and stability of traditional banking with the flexibility and innovation of the cryptocurrency ecosystem. However, such an endeavor would have to navigate a complex regulatory landscape, which would require significant investment and expertise.

Despite the challenges, the mass adoption of Bitcoin is still achievable, and it could eventually become the medium of exchange for everything. As more people embrace Bitcoin and the network effect grows, the need for stablecoins may diminish. The concept of escaping velocity, where the network grows exponentially and becomes self-sustaining, could eventually make stablecoins obsolete.

In conclusion, while stables are useful for day-to-day transactions, they shouldn't be seen as a replacement for Bitcoin or traditional banking. The recent situation with Circle and USDC highlights the risks associated with relying on stablecoins for banking services. The stifling regulations in the USA are making it difficult for American innovation to flourish in the cryptocurrency space. However, the mass adoption of Bitcoin is still achievable, and could eventually become the medium of exchange for everything.