271–280 of 388 posts
How can stable coin ever maintain the price? People can still speculate and sell it for more than a $, and buyers can buy it for more than a $.
Traders, including HFT, are incentivized by the underlying value to keep the bid/ask spread very tight.
Is making a stable coin as simple as naming it a 'stable' coin ?
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So what benefits does this have over PayPal then?
>Use cases for USDC today include: >Improved send and receive. Two Ethereum wallets can quickly send and receive any amount of USDC at any time of day. Large transfers for business purposes become as easy as small e-commerce payments. Consumers can use the Coinbase app to send USDC to someone, while remaining confident the value is stable. >Use in dApps and exchanges. There is a burgeoning ecosystem of crypto dApps,…
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I don't see how this won't result in rebuilding the current regulated banking system on top of an inefficient system bottlenecked by proof-of-work.
"Rebuilding the current regulated banking system" just with different people in charge can be quite lucrative if you are one of the new builders who is now in charge.
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I think they mean if you are using your own wallet to store your bitcoin, then coinbase and gemini have no control over what you do with it, except not using their own services
Then back to my original point: If no exchanges allow you to deposit BTC, what are you doing with it? Once you've shamir-secret-split your multi-sig cold-storage private keys, laminated them, placed them in fireproof envelopes and dug them deep in the ground in 5 different continents... what exactly do you DO with your BTC?
If you have some time, rent mining power with BTC, and get freshly minted totally clean bitcoin in return.
For example, if the keys issuing the USDC has ever been compromised, new assets can be issued instantly by an attacker, compromising fungibility and causing other problems. Whereas if Maker/Dai smart contract proves secure over time, there's no centralized issuing entity/keys to compromise. Afaik the only centralized privilege controlled by MakerDAO is the global settlement, which merely refunds everyone their ether.
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Interestingly, in dark web markets, it is often exactly the opposite scenario. No one wants USD and they all want crypto.
At some point they'll want to exchange their profits for real goods and services. They will rely on some exchange service to cash out eventually.
The real kicker is whether the other criminals are willing to accept bitcoin which they know won't convert to USD.
Something that's missing from this article: Since USDC is an ERC20 token based on Ethereum, you'll still need to hold ETH so that you can pay for gas to move the USDC stablecoin token around. A fiat-world analogy to this would be to imagine if spending Euros required you to hold US Dollars to pay the transaction fees.
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I can definitely see the attraction for entrepreneurs, just not the value for anyone else.
It's a form of time-arbitrage. The cost of regulation is a decrease in both convenience and innovation. By eliminating regulation, you get a whole host of new startups that were previously held back, some of which solve genuine problems that have no existing solution. Consumers flock to these startups because right now, in this moment , they solve problems better and are more responsive to customers than the existing…
The simplified form is that a "gold-rush" mentality in an entrepreneurial bubble, even though it misprices risk generally, incentivizes builders to go build things more than they would, and since on balance building things is good, a hyper period of new venture formation still leads to net gains even if most are failures.
But nostrademons has a next-level mechanic here -- the idea that stage and scale are not fractal, and hence that rebuilding an ecosystem de novo (perhaps in a sort of sheltered petri dish) can yield big interesting beneficial outcomes because of the plasticity of things at the smaller scale and earlier stage.
(Still, I think it's a monumentally bad idea to acquiesce in the rebuilding of the financial system de novo by amateurs.)
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…
Another key drawback of USDC is that your account can be frozen by the centralized authority: USDC tokens are ERC-20 compatible and can be used with any ERC-20 compatible digital wallet. However, a global blacklist is maintained by CENTRE for USDC, which prevents tokens from being sent into or from blacklisted addresses. Reasons for blacklisting could include known fraudulent or illegal activity, or a legal order or…
Does anyone have the token contract address? I am assuming the blacklist is part of the smart contract based on the above wording, though haven't had a chance to look at the code. If it's not part of the code and only exists on exchange wallets then I see what Coinbase is doing as more reasonable.