I have been waiting for some regulatory movement in this space. I am not really familiar enough with government agencies to know how a document like this filters into Congress for actual regulations to start getting drafted and debated, but to my ignorant eyes this is great news!
Report on Stablecoins [pdf]
161–170 of 697 posts
Re: Report on Stablecoins [pdf]
#162If the US would just provide its own stable coin it would kill all other USD stable coins and there would be no more issues. Who would want tether if you can get government backed USD stable coins?
Nobody. The alternative to government backed USD stable coins isn't tether. It's algorithmic stablecoins (FEI, FRAX, etc.) and collateralized stablecoins (DAI, MIM, LUSD, DOLA, etc.).
Re: Report on Stablecoins [pdf]
#163All these coins are proven to be worthless. When speculation is making everyone money, the money isn't worth much. Edit: Love the immediate fear downvote. No one wants to hear their gold is really just shiny dirt.
I just went through the process of buying something expensive in a "trustless" system in an IRL country. It was pretty painful and very expensive -- I paid $300 just to get a guaranteed check cut! Of course this is a trivial problem to solve with smart contracts, if you can have things like real-life identity and real-life money mapped to them. While I don't think any of the crypto stuff out there today solves any of…
> Of course this is a trivial problem to solve with smart contracts, if you can have things like real-life identity and real-life money mapped to them.
This reminds me of talking to a salesperson at $BIG_CO about their "blockchain platform cloud" offering for "ending inventory tracking system inaccuracy problems once and for all".
I could never figure out how cryptography was supposed to help with the "is the physical thing actually where it's supposed to be in the physical warehouse" problem. That seemed like the non-trivial part. Everything else you could just do with a flat-file CSV or whatever.
The free drinks were nice.
Re: Report on Stablecoins [pdf]
#164Earlier quoted context omitted.
>>There's a canonical toxic response to this = HFSP. I don't feel this was your actual response, but I still need to address it because I don't understand how anybody ever can have that as a remotely legitimate, thought-out response. How can any financial instrument/currency make everybody "rich", in any real terms? If you gave everybody million USD tomorrow, it'd crash so bad that we'd be right back where we came fr…
A central plank of the US dollar (all fiat currencies, really) is that if you hold on to them for long enough all the wealth you had when you first picked them up gets transferred to someone else. Compared to that baseline holding literally anything else - including crypto - has a better theoretical chance of preserving your wealth. When measured in terms of US dollars, that has the appearance of everyone who owns it…
No, crypto does not 'theoretically' hold out better than USD or other things.
An asset - no matter what it is - is only going to have value in the future depending on how others are going to a value it.
This means does it survive war? National collapse? etc..
USD is a currency, not a store of value, it's designed to be slightly inflationary. That's policy and public information. Don't hold them for 'long term' but it will at least have some value.
Gold and Real Estate (to the extent you can control that real estate, which depends on rational social organization etc.) - will probably hold their value. As will some other things.
Crypto would be the last choice among many as a store of value, as they could all be wiped out in a second, forget the issues of what financial fashions might come into place in the future.
Crypto is still 100% experimental, and every dollar traded in crypto, is at least today, purely speculative, no different than trading Baseball Cards. But without at least the Baseball Cards. That's where it is today and while something might come along, nothing is quite on the horizon just yet.
Re: Report on Stablecoins [pdf]
#165All these coins are proven to be worthless. When speculation is making everyone money, the money isn't worth much. Edit: Love the immediate fear downvote. No one wants to hear their gold is really just shiny dirt.
I think it would be helpful here to compare the theory of a ponzi scheme to that of bitcoin. In the beginning, buyers buy into a ponzi scheme because of a story that the creators are telling about their scheme. As time goes on, people buy in because the early investors are making a ton of money, as the value of the asset begins to skyrocket. Later on, people buy in because of previous hype, even though returns are ac…
Nice balanced take, though you're leaving out the incredibly harmful environmental impact
Re: Report on Stablecoins [pdf]
#166All these coins are proven to be worthless. When speculation is making everyone money, the money isn't worth much. Edit: Love the immediate fear downvote. No one wants to hear their gold is really just shiny dirt.
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Re: Report on Stablecoins [pdf]
#167Earlier quoted context omitted.
Amazing how many people are die hard advocates of being closed minded. The net market for crypto hits over a trillion dollars, and you still say things like this declaring they are proven to be worthless. This is posted on a report by the US government on a technology that is effectively a digital wrapper to use the US dollar easily online. How is there no worth in that? Out of curiosity, what would it take to change…
I can already use the us dollar easily online.
Yes, but you likely live in a first-world country with generous options for banking. Bitcoin can serve anyone anywhere, regardless if they live in a privileged country or not. Try using your USD bank to send/receive money as a citizen of Iran or Libya or Nigeria. There are over 1 billion unbanked in the world today. They cannot use the US dollar easily online.
Re: Report on Stablecoins [pdf]
#168Earlier quoted context omitted.
>>There's a canonical toxic response to this = HFSP. I don't feel this was your actual response, but I still need to address it because I don't understand how anybody ever can have that as a remotely legitimate, thought-out response. How can any financial instrument/currency make everybody "rich", in any real terms? If you gave everybody million USD tomorrow, it'd crash so bad that we'd be right back where we came fr…
There's a bunch to unpack here, on both sides. To start with, I'll say that I agree with the mainstream view that cryptocurrency isn't actually creating wealth, in the sense of non-financial real goods that improve people's lives. It's redistributing it. Everybody's crypto gain comes at the expense of somebody else's crypto loss. I'll also throw in that folks who say "HFSP" are often the losers, because they're the o…
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Re: Report on Stablecoins [pdf]
#169All these coins are proven to be worthless. When speculation is making everyone money, the money isn't worth much. Edit: Love the immediate fear downvote. No one wants to hear their gold is really just shiny dirt.
You broke the site guidelines badly — first with the shallow dismissal, and then with the off-topic complaint about downvotes and name-calling.
If you'd please review https://news.ycombinator.com/newsguidelines.html and stick to the rules when posting here, we'd appreciate it.
We detached this subthread from https://news.ycombinator.com/item?id=29072552.
(p.s. This is just about comment quality and HN guidelines - not any position on the underlying topic)
Re: Report on Stablecoins [pdf]
#170The only real point of stable coins seems to be tax/sanctions evasion. Given that, no respectable institution (tier 1 banks etc) will run one. Given that, all stable coins are only stable till the disreputable nature of the operator catches up with them...