231–240 of 697 posts
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Is Dai similar to Gemini's GUSD stable coin? It too is backed by Etherium. I think Gemini is paying 8 or 9% APR for holding. Where is that money coming from? Are they loaning out for a higher rate than that?
It’s spelled Ethereum.
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Exactly. Ultimately cryptocurrencies are a negative-sum game in that they take in real money and just move that money around, while spending some on overhead. In contrast, imagine investing in, say, a new fast-food franchise joint. They money you put in there is used to acquire assets that are used to produce goods that people will pay to consume. If it's a well-run business, the value of the outputs will be more tha…
> They money you put in there is used to acquire assets that are used to produce goods that people will pay to consume Is a decentralized, public ledger not a good people will pay (via cryptocurrency) to consume?
From the "Recommendations" section: > Legislation should address the risks outlined in this report by establishing an appropriate federal prudential framework for payment stablecoin arrangements.29 In particular, with respect to stablecoin issuers, legislation should provide for supervision on a consolidated basis; prudential standards; and, potentially, access to appropriate components of the federal safety net. To…
This is good. The backing of stablecoins is a very real issue. As the Treasury points out, there's a very real possibility of a run. Two stablecoins have crashed so far, SafeDollar SDO, and $TITAN. They went all the way to zero. Can Tether survive a net outflow? Probably not. They don't have the collateral. Dai is really a derivative of Etherium. Dai is backed by Etherium at 150%. So value in Dai is at risk if the pr…
Is there a way to find out what was the market cap of those two? Searched coingecko and a few other places and came empty handed (they just list "price" but no historical market cap or outstanding coins)
"If well-designed and appropriately regulated, stablecoins could support faster, more efficient, and more inclusive payments options." Anyone else find it bizarre that the solution to slow payments might turn out to be distributed ledgers based on proof of work? It feels like the last thing you'd expect - especially since we're starting from a position of managing money through trusted centralised authorities. It's a…
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I always love looking at “market cap” for these things. As if every coin there could actually be sold for the price listed making it worth hypothetical billions. Even a small cash out will cut the value to pieces.
That's the same with many markets though. Market cap is a pretty silly metric to use for almost any market.
If I paid $50000 for a cowry shell and said the market cap of cowry shells is more than MasterCard then there's a few problems...
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Tether can survive a net outflow because Tethers aren't redeemable in that way. If you show up with 1M USDT, they won't give you $1M USD. It'll have to collapse on exchanges with more sellers than buyers, and to determine how that happens you need to actually understand what specific mechanism underlies how the peg is maintained. I suspect Tether is all crypto-backed debt issuance which is denominated in real $USD wh…
Tether will collapse the same way that Squid Game Coin collapsed - extremely quickly. Assuming a power distribution of coins across accounts, it's likely that 99% of tether accounts don't meet the 100,000 $USDT threshold to cash out. If you have a coin, where 99% of people/accounts aren't allowed to cash out that reeks of scam. You can come up with tons of smoke to disguise it, and the whole "well you have to sell on…
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Realistically I don't have the power to put humans either above or below computers. That'll depend upon the independent choices of billions of humans and hundreds of billions of microprocessors. I've found that having an accurate model of the world - one that can generate likely predictions - is very important for profit now and potentially for survival in the near future. Knowing that people are frequently blind to…
Sure, but your comment doesn't reflect an accurate model of the world -- brains and computers are not the same kind of thing, and humans are more than just a brain. I know there are powerful people trying to convince us that your model is accurate, though, with the goal of getting us to allow their computers more control over our lives. I'm worried that people are buying into this view, not because they believe it's…
Fed should make a commitment NOT to bail out crypto people under ANY circumstances!
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In the case of the USD, the existence of a powerful government with a variety of powers (including coercive ones). Nothing is guaranteed in life, but it is orders of magnitude different from a digital currency offered by private individuals.
Sure and I agree the USD at the moment has an incredible backing. Also it being the reserve currency and base for most other currencies and commodities is no small thing. You could argue that BTC is backed by one of the most powerful networks of computing power on the planet. I don't think that's better than what the USD has, but it isn't 'Nothing'. The fact it can't be debased as easily as fiat currencies is not a t…
> The fact it can't be debased as easily as fiat currencies is not a tangible thing but it does compel interest in it.
That is not a benefit to a currency, quite the opposite. A deflationary currency would likely lead to a deflationary spiral, savaging the job market [1]
It also leads to a monetary system that cannot adjust to a changing population or to transient issues such as COVID. If BTC were the currency of record in 2020, the economy would likely have been utterly devastated.
[1] https://www.investopedia.com/terms/d/deflationary-spiral.asp