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Report on Stablecoins [pdf]

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241–250 of 697 posts

Re: Report on Stablecoins [pdf]

#241

Earlier quoted context omitted.

I'm a crypto bear myself, but I'm not sure I agree with this argument. Plenty of services are built around "just moving money around" - accounting in this way has a ton of real value or else stripe, visa, paypal etc wouldn't be the huge companies they are. The questions are, whether "investing" by buying and holding is the right way to capture the value that this produces, and whether the benefits of doing it on a di…

That's not quite correct, although I understand your sentiment. When you own a share of Square (or Visa, or PayPal) each time a transaction takes place on their network, a portion of that transaction (revenue minus costs) accrues to the company - and by extension increases the intrinsic value of your share. The transaction revenue is spent on furniture, on R&D, on employees and on buffing up their cash position. As a…

As a holder of crypto, you are both a customer and an owner.

You pay a fee for each transaction you send, just like any other service. b

However, your holdings increase in value the more other people use the same chain because the value of the entire ecosystem needs to scale proportionally to the value people are attempting to transact across it.

Financial systems, like social networks, and most businesses coming out of SV rely on network effects for much of their value.

USD has been the default option for the world, and enforced through violence when people attempt to create their own networks of trade.

The positive sum value that cryptocurrency is attempting to create is the ability to send anyone in the world any amount of value (money or otherwise) not subject to government permission, or sabotage (ie money printing)

It's like any one being able to suggest a Federal Reserve policy, and the vote being handled by the people, not representatives or a committee.

It is revolutionarily democratic.

Re: Report on Stablecoins [pdf]

#242
post #202

Earlier quoted context omitted.

> 100x better than existing solutions. And after ten years, there isn't one actual application of cryptocurrencies except for speculation and crime.

I'm with you, where are the actual applications? I'd say this criticism was mostly fair up until about two years ago. Within the last two years, the actual applications have flourished. For example, have a look through this list https://defipulse.com/ If you remain skeptical, that's fair. The good news is, Ethereum is reaching adulthood this year by switching to proof of stake and launching the web of layer-2 network…

Thanks for that link. I've been long on BTC since the beginning, and I fully love the concept of crypto.

But busy with work (and I sold my startup 2 years ago) I went completely dark on the Crypto world. Now I'm trying to catch up with it and both DeFi and everything Layer 2 seem to be the future.

Do you have any other resources to recommend?

Re: Report on Stablecoins [pdf]

#243

Earlier quoted context omitted.

> 100x better than existing solutions. And after ten years, there isn't one actual application of cryptocurrencies except for speculation and crime.

I buy legal goods with them. Just because you don't _want_ to use them doesn't mean no one else does.

Do you really? Or does your binance/coinbase debit card convert your crypto to USD and send dollars out via ACH?

Re: Report on Stablecoins [pdf]

#244

Earlier quoted context omitted.

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.

The stock market won't collapse in the same way because stocks have earnings and dividends (which is what the value is largely based upon).

Sure: securities can go up, or down, in price almost arbitrarily. But they largely can't go below zero (aka: bankruptcy law protects against that), and they can't really go below the expected profits of the company (because shareholders are entitled to those profits. Worst-comes-to-worst, the shareholders can demand dividends and cash out through those means)

A lot of companies are 20x or 30x, or more of their expected profits (representing maybe 20 years of profits is roughly the fair price for a typical company's stock price). There are exceptions, especially in growth stage companies (where "profits" is now "expected profits" of the far future: the shareholders believe the company is onto a good idea and are willing to pay more on the hopes that the company becomes very large in the future).

Re: Report on Stablecoins [pdf]

#245
post #83

Earlier quoted context omitted.

I'm not the government or even a lawyer. But I'd imagine they'd block companies from trading Bitcoins for dollars or mining Bitcoin. Turn off all the ETFs and options trading. Say Tesla and MicroStrategy can't hold it in their treasury. I doubt they can make it disappear but that would certainly put a dent in US adoption.

I'm sure they could ask for China's help with that. Maybe the US Gov could even get a copy of their Great Firewall? Good times.

You guys are ridiculous - delicate geniuses who envy not having purchased bitcoin years ago! LOL

Re: Report on Stablecoins [pdf]

#246

Earlier quoted context omitted.

I'm a crypto bear myself, but I'm not sure I agree with this argument. Plenty of services are built around "just moving money around" - accounting in this way has a ton of real value or else stripe, visa, paypal etc wouldn't be the huge companies they are. The questions are, whether "investing" by buying and holding is the right way to capture the value that this produces, and whether the benefits of doing it on a di…

That's not quite correct, although I understand your sentiment. When you own a share of Square (or Visa, or PayPal) each time a transaction takes place on their network, a portion of that transaction (revenue minus costs) accrues to the company - and by extension increases the intrinsic value of your share. The transaction revenue is spent on furniture, on R&D, on employees and on buffing up their cash position. As a…

On Ethereum, the majority of transaction fees are burned. In effect, they are distributed to ETH holders in the same way that stock buybacks distribute corporate revenues.

Re: Report on Stablecoins [pdf]

#247

Earlier quoted context omitted.

I think it would make them illegal. As it probably should, I'm not aware of any that are not an elaborate scam.

I read your comment and then started reading about at MakerDAO's governance model. It doesn't jump out as a scam to me, just a clever bit of game theory. What am I missing?

DAO is crypto backed by crypto. I think GP is referring to the lack of transparency with fiat-backed stable coins, like tether.

Re: Report on Stablecoins [pdf]

#248

Earlier quoted context omitted.

I'm a crypto bear myself, but I'm not sure I agree with this argument. Plenty of services are built around "just moving money around" - accounting in this way has a ton of real value or else stripe, visa, paypal etc wouldn't be the huge companies they are. The questions are, whether "investing" by buying and holding is the right way to capture the value that this produces, and whether the benefits of doing it on a di…

That's not quite correct, although I understand your sentiment. When you own a share of Square (or Visa, or PayPal) each time a transaction takes place on their network, a portion of that transaction (revenue minus costs) accrues to the company - and by extension increases the intrinsic value of your share. The transaction revenue is spent on furniture, on R&D, on employees and on buffing up their cash position. As a…

This all sounds intuitively correct, and it seems that similar arguments can be made about gold bullion, right? It costs some amount of money every year to mine, refine, transport and store it, and none of that is accruing to the actual holders of bullion. (One difference being that there is some residual value of the gold for industrial and jewellery uses, but that's hardly what's keeping the bullion price where it is).

Re: Report on Stablecoins [pdf]

#249
post #226
post #217

Earlier quoted context omitted.

This is just pathetic.

There's a large subset of the talented people on HN that were wrong about crypto years ago-- they couldn't see that the casino and the innovation are, unfortunately, inseparable-- and many now cling to their original incorrect points of view, even as crypto is clearly changing the world like the internet did in the 90s and mobile in the 00s. I have been full-time in crypto for years. I could write you a 10,000-word e…

It’s pathetic because you’re just writing nonsense and can’t even describe anything practically productive about crypto. None.

By the way, I could ALSO write you 10,000 word salad about how commonly found stones can solve the wrongs in modern finance. That doesn’t say anything about common stones. It just says modern finance is FLAWED.

Re: Report on Stablecoins [pdf]

#250

Earlier quoted context omitted.

I'm a crypto bear myself, but I'm not sure I agree with this argument. Plenty of services are built around "just moving money around" - accounting in this way has a ton of real value or else stripe, visa, paypal etc wouldn't be the huge companies they are. The questions are, whether "investing" by buying and holding is the right way to capture the value that this produces, and whether the benefits of doing it on a di…

That's not quite correct, although I understand your sentiment. When you own a share of Square (or Visa, or PayPal) each time a transaction takes place on their network, a portion of that transaction (revenue minus costs) accrues to the company - and by extension increases the intrinsic value of your share. The transaction revenue is spent on furniture, on R&D, on employees and on buffing up their cash position. As a…

Also, not quite correct.

Bitcoin isn't figuratively a store of value, it actually is. The amount of bitcoin on DeFi, backing collateral for flash loans and Stablecoin minting is astounding.

>When you own a share of Square (or Visa, or PayPal) each time a transaction takes place on their network, a portion of that transaction (revenue minus costs) accrues to the company - and by extension increases the intrinsic value of your share.

All the V3 crypto protocols have exactly as you describe above. However, instead of the money going into the coffers of the company, it goes into a 'Development fund' That will award the crypto to people who have applied and been voted on by the community to launch a project/technology in the protocol. [1]

https://fintechs.fi/2021/10/29/as-parachain-auctions-launch-...

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