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Top stablecoins shed $7B in May as traders redeem tokens en masse

blockworks.co

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Re: Top stablecoins shed $7B in May as traders redeem tokens en masse

#161

Post by lottin »

exdsq wrote: post #82
mindwok wrote: post #68

Earlier quoted context omitted.

Does this really matter though? Is it any different to drug lord having a tonne of dirty cash they can’t use anywhere because all the useful places you could put it want nothing to do with you? Watching from the sidelines, the Crypto world seems to just be morphing into the normal financial world.

> Watching from the sidelines, the Crypto world seems to just be morphing into the normal financial world. Say this is true, how amazing would that be for countries without existing banking infrastructure to easily access it?

Can you name a single country that doesn't have a "banking infrastructure", other than perhaps North Korea?

Re: Top stablecoins shed $7B in May as traders redeem tokens en masse

#162

Post by OtomotO »

mindwok wrote: post #68
OtomotO wrote: post #31

Earlier quoted context omitted.

It is until you're on a list, for whatever reason. When states and countries can just block your access to your bank accounts, because you're on the other side of interests, it gets...Interesting With a decentralised approach, such actions would've needed to be implemented in the real world, not merely by the flick of a virtual lever.

Does this really matter though? Is it any different to drug lord having a tonne of dirty cash they can’t use anywhere because all the useful places you could put it want nothing to do with you? Watching from the sidelines, the Crypto world seems to just be morphing into the normal financial world.

Yes, it's different, because for a drug lord not being able to access some amount of dirty cash is very inconvenient, while for the average person on the flag of a regime, it may be an end

Re: Top stablecoins shed $7B in May as traders redeem tokens en masse

#163

Post by web4 »

mutatio wrote: post #160
web4 wrote: post #139

Earlier quoted context omitted.

large (> 10K) bank and wire transfers within UK and EU are still in the order of days, not seconds. the last large bank transfer I did took 5 days without any way for me to track this transfer. the same amount I was able to transfer within crypto networks in 30 seconds and the transaction progress and it’s validation status was visible for the entire duration. the EU and UK banking system is far better than the US bu…

This isn't true for transfers within the UK using Faster payments - upto £250K, near instantaneous.

that limit depends on your bank. for large transfers you will often need to visit your branch in person which can be a multi day process.

and yes UK faster payments system is great but it is not yet the backbone of global payment processing. the world is larger than the UK and as we continue to connect globally online and become more digitally nomadic there will be more need to pay users outside of a UK-to-UK bank system.

Re: Top stablecoins shed $7B in May as traders redeem tokens en masse

#164

Post by lottin »

krzyk wrote: post #58
jen729w wrote: post #34

Earlier quoted context omitted.

> no issues with tax&bank issues Sure about that bit? This may be the perception – that holding your assets in 'the crypto system' avoids tax issues – but the taxman will disagree. Swapping $BTC for $USDC or whatever your tether of choice is is a 'taxable event'. You've sold one security in exchange for another. It doesn't matter that they're both crypto. Now, it might be harder for the taxman to detect this event, w…

You mean taxable for US tax office? In my country it is not taxable, only exchange to fiat currency is. (and this is explicitly mentioned).

If this is true, it simply means your tax code has a giant loophole that allows people avoid paying tax on capital gains by simply swapping an asset for another.

Re: Top stablecoins shed $7B in May as traders redeem tokens en masse

#165

Post by taspeotis »

Look I am very ignorant about all this stuff but ... is there any downside to shorting a stablecoin? Please be gentle with me:

Like if you short it and the price doesn't move (by design) are you out any money?

The price won't go up (by design) because nobody's going to spend too much money from their reserves to support a price over US$1.

But it's possible for the reserves to run dry in which case the price goes down and you win.

Re: Top stablecoins shed $7B in May as traders redeem tokens en masse

#166

Post by axlee »

taspeotis wrote: post #165

Look I am very ignorant about all this stuff but ... is there any downside to shorting a stablecoin? Please be gentle with me: Like if you short it and the price doesn't move (by design) are you out any money? The price won't go up (by design) because nobody's going to spend too much money from their reserves to support a price over US$1. But it's possible for the reserves to run dry in which case the price goes down…

You end up paying the transaction fees, which are insane. On top of the interest.

Re: Top stablecoins shed $7B in May as traders redeem tokens en masse

#167

Post by lottin »

logifail wrote: post #93
namdnay wrote: post #73

Earlier quoted context omitted.

Depends on the jurisdiction. In most European countries for example, you only pay tax when cashing out

> when cashing out Cashing out meaning "selling crypto for fiat"? What about if you sell BTC for another crypto or for gold or ...

It means selling the asset, full stop.

Re: Top stablecoins shed $7B in May as traders redeem tokens en masse

#168

Post by tremarley »

taspeotis wrote: post #165

Look I am very ignorant about all this stuff but ... is there any downside to shorting a stablecoin? Please be gentle with me: Like if you short it and the price doesn't move (by design) are you out any money? The price won't go up (by design) because nobody's going to spend too much money from their reserves to support a price over US$1. But it's possible for the reserves to run dry in which case the price goes down…

The funding rate could get expensive

Re: Top stablecoins shed $7B in May as traders redeem tokens en masse

#169

Post by exdsq »

lottin wrote: post #161
exdsq wrote: post #82

Earlier quoted context omitted.

> Watching from the sidelines, the Crypto world seems to just be morphing into the normal financial world. Say this is true, how amazing would that be for countries without existing banking infrastructure to easily access it?

Can you name a single country that doesn't have a "banking infrastructure", other than perhaps North Korea?

How about all the communities that use mobile credit over SMS for finance?

Re: Top stablecoins shed $7B in May as traders redeem tokens en masse

#170

Post by exdsq »

dmitriid wrote: post #124
exdsq wrote: post #82

Earlier quoted context omitted.

> Watching from the sidelines, the Crypto world seems to just be morphing into the normal financial world. Say this is true, how amazing would that be for countries without existing banking infrastructure to easily access it?

So the countries would have access to stable internet (can't have crypto without it). This access is fast and cheap enough for unbanked people to access it. These unbanked people would also have access to things like smartphones and computers because crypto doesn't exist in real world. And yet those countries would not have banking infrastructure. Nice. Nice. Any such countries exist?

You can actually interact with some crypto projects over SMS, and at the moment there are countries where the majority of txs are SMS mobile credit swaps. The issue is these don’t offer things like account histories, you can’t access financial products like loans (i.e micro loans) and remittance payments are hard to do from abroad in this way.

But actually smart phones and internet access is surprisingly high in sub Saharan africa where they primarily still use SMS trading.

And yes, crypto is starting to catch on out there as an alternative.

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