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

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

#241

Post by lupire »

hestefisk wrote: post #110
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.

Those lists can come in quite handy when you need to deal with people like Russian oligarchs …

And with dissidents.

But not so handy if you are an oligarch (or a dissident)

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

#242

Post by PKop »

shawabawa3 wrote: post #216
TekMol wrote: post #11

What are people holding all those stable coins for? In contrast to other crypto currencies, nobody is holding it for speculation. I doubt anybody expects stable coins to be a better store of "dollar value" than the dollar itself. Yet, someone holds those $150B worth of stable coins. Who and why?

As someone that holds a lot of stable coins (USDC, not USDT) The same reason you would hold dollars in a bank account. My local currency (GBP) is weak atm and falling against the dollar. I want to be able to use crypto services (easy transfers, buying/selling crypto, borrow/lend on DeFI), but I don't want any more exposure to the currently volatile crypto markets, so I hold a lot of USDC Some of that USDC is being le…

It's surprising how many times the question you are answering gets asked and people still don't get it.

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

#243

Post by oneoff786 »

lupire wrote: post #232
dalbasal wrote: post #85

Earlier quoted context omitted.

Either way, unless they are fully backed by USD... stablecoin is just an unregulated bank and it can run. If that's not the case, they have as much rope as they have ability to liquidate. IE they can keep buying their own coin to defend the price for as long as they can. Imo, stablecoins are a good example of everyone knowing the score but systemic risk accrues regardless. Stabkecoins just the worst kind of risk. Low…

Stablecoin is only risky while you hold it. You can convert to Bitcoin or Eth to adjust your risk profile, and take profits occasionally in national currency.

Russian roulette is only dangerous while you’re playing. In fact, it’s honestly risk free unless it’s your turn.

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

#244

Post by leereeves »

robinduckett wrote: post #149
slyfocks wrote: post #144

Earlier quoted context omitted.

It is indeed a taxable event. People who exchange crypto for “stable”coins are generally doing so to stay out of the KYC banking realm so they can lie about their transactions to their country’s tax authorities.

In the UK, it is only a taxable event when the coin is exchanged to a "readily convertible asset", i.e. Bitcoin, Mainnet ETH.

Tether isn't readily convertible?

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

#245

Post by civilized »

xmcqdpt2 wrote: post #229
TekMol wrote: post #137

Earlier quoted context omitted.

Which exchange pays you those 5-7% and why do they do that?

There is even better rates available. The Anchor protocol pays 20% APR! And the principal is protected as described in the white paper, > Anchor offers a principal-protected stablecoin savings product that pays depositors a stable interest rate. It achieves this by stabilizing the deposit interest rate with block rewards accruing to assets that are used to borrow stablecoins. source: https://www.anchorprotocol.com/do…

> You literally cannot lose! And the gains are in a stablecoin (UST) so you don't even have to deal with the volitality of crypto

...who wants to tell him?

https://fortune.com/2022/05/19/luna-terrausd-ust-algorithmic...

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

#246

Post by cmsd2 »

robinduckett wrote: post #149
slyfocks wrote: post #144

Earlier quoted context omitted.

It is indeed a taxable event. People who exchange crypto for “stable”coins are generally doing so to stay out of the KYC banking realm so they can lie about their transactions to their country’s tax authorities.

In the UK, it is only a taxable event when the coin is exchanged to a "readily convertible asset", i.e. Bitcoin, Mainnet ETH.

I don’t know where you got this advice from but this is precisely wrong from my reading of the rules. An asset exchange between two non legal tender assets is treated exactly the same as any other disposal and acquisition and absolutely is a chargeable event.

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

#247

Post by OtomotO »

papito wrote: post #185
OtomotO wrote: post #162

Earlier quoted context omitted.

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

"There are a few people in the world who get locked out from banking by an oppressive regime" is just another rather unconvincing argument for crypto. Yes, let's upend the world's financial system, evolving and improving for centuries, for THAT. Next it will be "but crypto will let you monetize your private data". Yeah no, it won't.

It's okay that it's unconvincing to you, but I think about dissidents and other "malicious" actors.

Apart from that, with a decentralised system it's way more complicated for others (!) to fuck up and lock your bank accounts.

But to be frank: I found the idea intriguing, never was invested at all. I am also not greedy and apart from taxes for my house I could sustain myself for a couple of months, maybe even 1-2 years without access to my bank accounts

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

#248

Post by OtomotO »

papito wrote: post #208
concordDance wrote: post #202

Earlier quoted context omitted.

You can get locked out of your bank account due to institutional incompetence (happened to a friend of mine in Spain) or due to being on the wrong side of a political argument (e.g. donating to the protesting truckers in Canada). I think there's a lot of value in being slightly harder to oppress by the political classes or arse-covering and uncaring bank managers.

And the solution is? Have a system where I can lose ALL my money by forgetting a password? Or when a crypto exchange goes boom and my life's savings are not FDIC ensured? I am sure your friend could get back in into the bank account. Being a random subject to a dumb banking accident is not the reason to upend the financial lives of billions.

It's not a binary decision though.

You can have some money in cash, some amount in real estate, gold, crypto...

Depends on how much you have etc. But it's not a "everything has to be crypto" or nothing may.

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

#249

Post by OtomotO »

nathias wrote: post #63
OtomotO wrote: post #33

Earlier quoted context omitted.

It would be a low price if it would reach the goal. I am pretty sure they won't though.

as I see it it's past the goal, as it's already a viable alternative to state and corporate powers

Only if you invested many years ago

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

#250

Post by thallium205 »

lupire wrote: post #231
grey-area wrote: post #140

Earlier quoted context omitted.

Technically, isn’t selling one asset and buying another precisely the definition of a taxable event? I don’t see how tether helps you avoid taxes unless you’re going to lie about your transactions and hope nobody notices.

You don't report income on every item you shuffle. In the spirit of US law (since crypto is t precisely classified), if you are a professional trader, you only pay taxes on your overall annual trading profits, not each individual trade. Same as how a a retail store doesn't have gains and losses on every individual item in inventory.

Don't you have to have some special tax license to treat earnings that way?
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