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Follow the Crypto

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Re: Follow the Crypto

#21

Post by dvt »

beaglesss wrote: post #19
nailer wrote: post #17

Earlier quoted context omitted.

USDC is more collateralised than your bank is (if you bank in the US).

It's not. The FDIC is ultimately collateralized by the entire US economy and will change the rules on a whim to collateralize ineligible depositors as seen in the silicon bank fiasco. On paper there is a limit but in practice it is as high as the rich and powerful like. It's not even a problem if they run out of imaginary money because the fed can simply ease in more to the FDIC via debt shell games.

> On paper there is a limit but in practice it is as high as the rich and powerful like.

I'm not particularly bullish on crypto, but this is definitely not the flex you think it is.

Re: Follow the Crypto

#22

Post by beaglesss »

kemotep wrote: post #18
monero-xmr wrote: post #10

Earlier quoted context omitted.

[flagged]

At least in the US inflation seems to be cooling down and only experienced a 3% yoy inflation rate last month. Monero in the same time frame technically only experienced just over 1% inflation but from June to July this year is experiencing 12% inflation and then had nearly 19% deflation a few months back. Just crazy volatility compared to USD. Would be pretty hard for the average person to make ends meet in that kin…

Which is why feds need to allow crypto derivatives securities to be sold in tradfi to hedge this volatility. They claim crypto is an unstable asset but then make it harder to stabilize your crypto wealth, it is maddening.

Re: Follow the Crypto

#23

Post by beaglesss »

dvt wrote: post #21
beaglesss wrote: post #19

Earlier quoted context omitted.

It's not. The FDIC is ultimately collateralized by the entire US economy and will change the rules on a whim to collateralize ineligible depositors as seen in the silicon bank fiasco. On paper there is a limit but in practice it is as high as the rich and powerful like. It's not even a problem if they run out of imaginary money because the fed can simply ease in more to the FDIC via debt shell games.

> On paper there is a limit but in practice it is as high as the rich and powerful like. I'm not particularly bullish on crypto, but this is definitely not the flex you think it is.

Who says it is a flex? It is simply reality, he who holds the central bank will tilt it and insuring institutions to favor powerful depositors, it's almost an axiom of governance and another reason why founders hated and warned against central banks.

Re: Follow the Crypto

#24

Post by roenxi »

monero-xmr wrote: post #6

A voluntary monetary system that you can use to avoid crushing money printing and inflation? What monsters

Although Molly may or may not believe that, this site doesn't seem to be capturing that thought. It is just interesting to see how different interest groups interact with the political sphere (reminding me that I should spend more time reading about such things - https://www.opensecrets.org/industries deserves a glance).

Re: Follow the Crypto

#25

Post by roenxi »

kemotep wrote: post #18
monero-xmr wrote: post #10

Earlier quoted context omitted.

[flagged]

At least in the US inflation seems to be cooling down and only experienced a 3% yoy inflation rate last month. Monero in the same time frame technically only experienced just over 1% inflation but from June to July this year is experiencing 12% inflation and then had nearly 19% deflation a few months back. Just crazy volatility compared to USD. Would be pretty hard for the average person to make ends meet in that kin…

> Monero in the same time frame technically only experienced just over 1% inflation but from June to July this year is experiencing 12% inflation and then had nearly 19% deflation a few months back

That doesn't sound right; annual inflation in the Monero blockchain is order of magnitude 200k new coins / 18,000k coins total ~= 1% annual and dropping. it isn't really feasible to get 12% inflation over a month with fundamentals like that. So while it is volatile, the changes in price aren't being caused by inflation. It is just supply-demand fluctuations in a relatively niche asset. Inflation is the trend in value change caused by longer term changes in supply.

Re: Follow the Crypto

#28

Post by roenxi »

neilk wrote: post #2

Molly White’s latest project, tracking political contributions of the cryptocurrency industry. White’s data shows these PACs dwarf even much larger industries in this political cycle.

> White’s data shows these PACs dwarf even much larger industries in this political cycle.

How does it show that? It suggests there was 200 million raised for the 2024 election, but that doesn't seem to be in comparison to anything. The US government borrowing alone is multiple trillions per year; people would be expected to spend way more than a few hundred million to influence it.

Presidential campaigns alone can run into a billion dollars.

Re: Follow the Crypto

#29

Post by Ferret7446 »

not2b wrote: post #16
nailer wrote: post #11

Earlier quoted context omitted.

The post you are replying to did not state that they were. You can easily look up practical application of cryptocurrency by looking up stablecoin usage over time.

"stablecoin" is a misnomer. Perhaps they should be called temporarily stable coins, because they tend to fail under pressure. https://chainsec.io/failed-stablecoins/

As opposed to what currency that does not fail under pressure?

Re: Follow the Crypto

#30

Post by qqqult »

beaglesss wrote: post #19
nailer wrote: post #17

Earlier quoted context omitted.

USDC is more collateralised than your bank is (if you bank in the US).

It's not. The FDIC is ultimately collateralized by the entire US economy and will change the rules on a whim to collateralize ineligible depositors as seen in the silicon bank fiasco. On paper there is a limit but in practice it is as high as the rich and powerful like. It's not even a problem if they run out of imaginary money because the fed can simply ease in more to the FDIC via debt shell games.

USDC just holds 90% in government treasuries custodied by blackrock & 10% in cash in a "too big to fail" US bank that's systemically important.

Your local bank has a 0% reserve requirement[1]. Ofc it'll most likely get bailed out by the FDIC (by taxpayers) in case of emergency but US regulated stablecoins are in no way more risky than US banks

1: https://www.federalreserve.gov/monetarypolicy/reservereq.htm....

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