Report on Stablecoins [pdf]

Post by mrep » Tue, Nov 02, 2021, 11:33 AM UTC

arcticbull wrote: post #380

usehackernews wrote: post #358

Earlier quoted context omitted.

My friend's family lives in Bosnia. He lives in the United States. He supports his family with his income, and frequently sends money from the United States to Bosnia. Best case scenario, using Paypal (Xoom), a centralized company, this takes him two days. Two days is the best case scenario! With Bitcoin it is almost instant. They switched to cryptocurrency after a near disastrous situation with the length of time th…

His best case scenario is opening a Wise multi-currency account, with supporting instant transfers free of charge in many cases. Bitcoin is not accepted anywhere, practically speaking. As such you're only looking at a small fraction of the transaction. You actually need to (1) transfer money into a crypto exchange for a 1-2% fee and whatever delay the domestic transfer takes (2) purchase Bitcoin for whatever fee the…

Post by da39a3ee » Tue, Nov 02, 2021, 11:48 AM UTC

Acrobatic_Road wrote: post #436

sub7 wrote: post #294

Earlier quoted context omitted.

Please show me a real world use case that's better than the status quo and is not speculation or gambling. It's been over 12 years and I'm still looking. Cryptoclowns can't use the it's too early excuse anymore. But they choose to listen to a handful of man children running around promising world peace via a distributed database.

Easy: bypassing financial censorship. Hint: try buying a 4chan pass without cryptocurrency.

Post by jules-jules » Tue, Nov 02, 2021, 11:54 AM UTC

Animats wrote: post #47

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…

Post by TheAlchemist » Tue, Nov 02, 2021, 12:03 PM UTC

panarky wrote: post #545

pcwalton wrote: post #538

Earlier quoted context omitted.

> But Tether's been around more than seven years, more than enough time for the "smart money" to profit by obliterating them. > The fact that Tether maintains its 1:1 peg to the dollar is a signal that maybe all the smart guys who have been confidently predicting its imminent and inevitable failure for the last seven years might be missing something. Bernie Madoff claimed that his scam started in 1991, though in real…

There wasn't this loud of a chorus continuously yelling that Madoff and Gox were scams, in every possible media outlet from blogs to Bloomberg, for seven years. There wasn't a well publicized US federal indictment and investigation of Madoff and Gox, settled with a fine and no injunction. I'm not saying Tether is clean or 100% funded, I don't know. But unlike Madoff and Gox, accusations have been very loud and very p…

Post by imtringued » Tue, Nov 02, 2021, 12:06 PM UTC

RustyConsul wrote: post #250

arcticbull wrote: post #218

Earlier quoted context omitted.

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…