Coinbase is launching support for the USDC stablecoin • Hacker News Board

Re: Coinbase is launching support for the USDC stablecoin

#11

Post by Permit » Tue, Oct 23, 2018, 4:30 PM UTC

Stablecoins seem like they would achieve most of the goals of the original cryptocurrencies such as Bitcoin:

- Decentralized transactions

- 24/7 access

- Low fees

- Store of value

I suppose the only drawback here is that they're issued from a centralized authority. That said, for practical purposes the vast majority of Bitcoin holders didn't mine their own coins either.

Despite this, no one on Twitter[1] seemed excited. In fact they seemed upset that Coinbase didn't announce support for their cryptocoin du jour (mostly Ripple or Cardano). This is a recurring theme on all the subreddits I've visited: People rarely care about the usage of their cryptocurrency, they're only interested in its price.

A cryptocurrency that stays the same value is not very interesting to traders and therefore most of the cryptocurrency community.

[1] https://twitter.com/coinbase/status/1054764504259543041

Re: Coinbase is launching support for the USDC stablecoin

#12

Post by larrysalibra » Tue, Oct 23, 2018, 4:30 PM UTC

endijs wrote: post #7

I understand why stablecoin's are useful to the end user. I also understand how Bitfinex is cashing in on Tether. However how is Coinbase making money with USDC? They clearly will have considerable expenses (keeping reserve, legal team, development etc. etc.). But if I give them 1USD and get back 1USDC, which later can be exchanged back to 1 USD, where are they making money?

Presumably they'll charge you a fee to buy, sell and trade it just like any other asset. If coinbase is involved in keeping the reserve, they can invest it various assets and keep the earnings - think money market fund, but you don't earn any interest - coinbase/circle keep the interest.

Re: Coinbase is launching support for the USDC stablecoin

#13

Post by hiimnate » Tue, Oct 23, 2018, 4:30 PM UTC

endijs wrote: post #7

I understand why stablecoin's are useful to the end user. I also understand how Bitfinex is cashing in on Tether. However how is Coinbase making money with USDC? They clearly will have considerable expenses (keeping reserve, legal team, development etc. etc.). But if I give them 1USD and get back 1USDC, which later can be exchanged back to 1 USD, where are they making money?

Don't they charge purchase fees?

Re: Coinbase is launching support for the USDC stablecoin

#14

Post by billions » Tue, Oct 23, 2018, 4:32 PM UTC

buildbuildbuild wrote: post #5

Excited to see a reputable company like Coinbase launch this. Hopefully with their reputation we can avoid another Tether situation. The US government should launch their own stablecoin. A digital US dollar is a national need that shouldn’t be managed by a corporation in my opinion.

The government's "stable coin" lost 96% of its value since 1913. Time to try something different? https://comparegoldandsilverprices.com/news/economics-101/do...

Re: Coinbase is launching support for the USDC stablecoin

#15

Post by Pharmakon » Tue, Oct 23, 2018, 4:32 PM UTC

Permit wrote: post #11

Stablecoins seem like they would achieve most of the goals of the original cryptocurrencies such as Bitcoin: - Decentralized transactions - 24/7 access - Low fees - Store of value I suppose the only drawback here is that they're issued from a centralized authority. That said, for practical purposes the vast majority of Bitcoin holders didn't mine their own coins either. Despite this, no one on Twitter[1] seemed excit…

You go from saying it achieves the goal of being decentralized, and in the next breath point out that it’s centralized. I don’t get it.

Re: Coinbase is launching support for the USDC stablecoin

#16

Post by ada1981 » Tue, Oct 23, 2018, 4:33 PM UTC

endijs wrote: post #7

I understand why stablecoin's are useful to the end user. I also understand how Bitfinex is cashing in on Tether. However how is Coinbase making money with USDC? They clearly will have considerable expenses (keeping reserve, legal team, development etc. etc.). But if I give them 1USD and get back 1USDC, which later can be exchanged back to 1 USD, where are they making money?

I imagine this could also boost the price of Ethereum and increase usage in general.

Coinbase needs to pivot from the pyramid scheme economics of the early coins and instead focus on transaction volume.

Re: Coinbase is launching support for the USDC stablecoin

#17

Post by radicaldreamer » Tue, Oct 23, 2018, 4:33 PM UTC

Pharmakon wrote: post #15

Permit wrote: post #11

Stablecoins seem like they would achieve most of the goals of the original cryptocurrencies such as Bitcoin: - Decentralized transactions - 24/7 access - Low fees - Store of value I suppose the only drawback here is that they're issued from a centralized authority. That said, for practical purposes the vast majority of Bitcoin holders didn't mine their own coins either. Despite this, no one on Twitter[1] seemed excit…

You go from saying it achieves the goal of being decentralized, and in the next breath point out that it’s centralized. I don’t get it.

The transactions can be decentralized while the mining is centralized.

Re: Coinbase is launching support for the USDC stablecoin

#18

Post by Permit » Tue, Oct 23, 2018, 4:34 PM UTC

Pharmakon wrote: post #15

Permit wrote: post #11

Stablecoins seem like they would achieve most of the goals of the original cryptocurrencies such as Bitcoin: - Decentralized transactions - 24/7 access - Low fees - Store of value I suppose the only drawback here is that they're issued from a centralized authority. That said, for practical purposes the vast majority of Bitcoin holders didn't mine their own coins either. Despite this, no one on Twitter[1] seemed excit…

You go from saying it achieves the goal of being decentralized, and in the next breath point out that it’s centralized. I don’t get it.

Decentralized transactions are distinct from decentralized issuance. Decentralized issuance doesn't matter to most people in the cryptocurrency ecosystem. They have been happy to participate in ICOs where coins are issued from a central authority.

That said, I haven't yet heard anything on how transactions are actually verified (ie. Proof of work vs Proof of Stake)

Edit: It appears to be an Ethereum-based token: https://support.usdc.circle.com/hc/en-us/articles/3600154713...

Re: Coinbase is launching support for the USDC stablecoin

#19

Post by radicaldreamer » Tue, Oct 23, 2018, 4:34 PM UTC

hiimnate wrote: post #13

endijs wrote: post #7

I understand why stablecoin's are useful to the end user. I also understand how Bitfinex is cashing in on Tether. However how is Coinbase making money with USDC? They clearly will have considerable expenses (keeping reserve, legal team, development etc. etc.). But if I give them 1USD and get back 1USDC, which later can be exchanged back to 1 USD, where are they making money?

Don't they charge purchase fees?

No, USDC is fee-free. They charge purchase fees on other cryptocurrencies though...

Re: Coinbase is launching support for the USDC stablecoin

#20

Post by arcticbull » Tue, Oct 23, 2018, 4:35 PM UTC

Permit wrote: post #11

Stablecoins seem like they would achieve most of the goals of the original cryptocurrencies such as Bitcoin: - Decentralized transactions - 24/7 access - Low fees - Store of value I suppose the only drawback here is that they're issued from a centralized authority. That said, for practical purposes the vast majority of Bitcoin holders didn't mine their own coins either. Despite this, no one on Twitter[1] seemed excit…

The US dollar already is exactly that with square cash or Venmo.