The Feasibility of Stablecoin

Are stablecoins a pipe dream? Yes. Yes they are. More importantly, they shouldn't be an ideal. The founders of such coins should have a basic understanding of currency if they're ever to attempt a 1:1 peg to the US dollar (or any other 'stable' currency). Problems include the following:

1. There is no fractional reserve system in crypto. The "permissionless" nature of blockchain doesn't bode well for there ever being one. The total supply of money might have to mimic what is only possible in a fractional reserve system.
2. It's difficult to manage expectation as your coin goes from nascent to mature. As your user base increases, your value SHOULD oscillate tremendously. Also, you're going to have early adopters just waiting to release tons of coin once you're pegged. If you can't control their activity, you cannot control your relative market value.
3. Trust is an issue. Bitcoin is popular because there is no need to trust anyone (emptor caveat).
4. This is the M1 money supply. If you're attempting to match the value of the US dollar with a supply that changes rapidly, you must have the same rights and abilities as a Federal Reserve. Without having a standard, world reserve currency, this is unlikely to match anything the Federal Reserve does. Check out M1:

These are a few reasons a stablecoin is not ideal in any conception that has it pegged to the dollar. There are plenty of other reasons to consider but I would like YOUR thoughts on the matter and whether or not you agree. Maybe you have a different conception of what a stablecoin should be. What is it?

-GME-