281–290 of 388 posts
The main problem with fiat backed stablecoins is that in addition to smart contract/theoretical security, you now have to also trust the procedural security of the entity issuing the asset. A collateralized stablecoin like Maker/Dai doesn't have that additional attack vector. For example, if the keys issuing the USDC has ever been compromised, new assets can be issued instantly by an attacker, compromising fungibilit…
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> Stablecoins seem like they would achieve most of the goals of the original cryptocurrencies such as Bitcoin Correct me if I'm wrong but Stablecoins sound like the opposite type of thing that Crypto-anarchist(s) behind Bitcoin tried to achieve. > I suppose the only drawback here is that they're issued from a centralized authority This reads in a hilarious way. Kind've like saying "I've found a perfect way to buy a c…
How's my stable coin portfolio going to moon? That's the problem here.
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"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.
How do you fix our current monetary system??? You cant... its also generally much easier to make change by starting from scratch rather than trying to move an entire establishment. If the innovation catches on, the old establishement will crumble.
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> This is not solving a problem that isn’t otherwise solved except money laundering and skirting AML/KYC rules. Look I may well be wrong, but can you suggest a use case I haven’t considered? I could see a decent amount of usage for dApp developers or anyone who wants micro transactions on their platform. That being said, “stablecoin” is probably quite useless outside of that very narrow use case.
People don’t really want micropayments as it turns out because people get decision fatigue. It’s why Netflix feels good and the iTunes Store video rentals don’t. The latter may have saved you money but you don’t want to keep deciding on whether something’s worth it.
Fair point. What I’m really interested in seeing is if they can maintain their peg.
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> There is no way to send electronic dollars without involving a third party Yeah but that third party is everywhere, available to all (US isn't the only country in the world you know?) and isn't aware you are using his service for sharing cryptocurrencies or simply reading Hacker News. The current third parties for transferring money, well they all fail one or multiple of theses while cryptocurrencies dosen't.
Cryptocurrencies have an advantage over electronic U.S. dollars in decentralized electronic transmission. I don't think that's a big deal, but the advantage exists. Stablecoins, on the other hand, have zero advantages over U.S. dollars. Backer goes bust, someone steals the dollars, someone freezes their accounts, et cetera and your currency is worthless. A trusted third party rests at the centre who is less regulated…
The real issue here is getting a USD-ETH oracle.
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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…
"Stablecoin" in general generates a ton of legal risk for the operators. If you can make peer-to-peer transactions with it, then the coin operators are definitely not complying with Know Your Customer and Anti-Money Laundering laws. This will pretty reliably get the US Feds to raid your offices, seize your website and servers, arrest the principles responsible, and prosecute them. See also: Liberty Reserve. On the ot…
I'm pretty sure a company like Coinbase which is worth $1.6 Billion did their due diligence on the legalities.
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> Stablecoins seem like they would achieve most of the goals of the original cryptocurrencies such as Bitcoin Correct me if I'm wrong but Stablecoins sound like the opposite type of thing that Crypto-anarchist(s) behind Bitcoin tried to achieve. > I suppose the only drawback here is that they're issued from a centralized authority This reads in a hilarious way. Kind've like saying "I've found a perfect way to buy a c…
>> I suppose the only drawback here is that they're issued from a centralized authority > This reads in a hilarious way. Kind've like saying "I've found a perfect way to buy a car - I suppose the only drawback is that I'll actually be buying a lawn mower" Assume bitcoins are an attempt to bring back the older technology of coins, but on the internet. Coins are issued by a central authority, though that isn't necessar…
Even the golden dinar would have the problem if it were nominally worth, say, one silver shekel, and the Caliph switched to demanding jizyah in shekels. All of a sudden, absent a massive bank keeping the 1:1 dinar:shekel peg, the dinar would drop in value and the shekels would rise relatively.
The problem is, of course, compounded when the coin becomes a slip of paper, and again when the paper becomes a mere number...
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…
Hi all — head of engineering for the consumer product at Coinbase here (iOS, Android, coinbase.com). Happy to answer any questions that people have — also, just wanted to make a plug that we're hiring. If you're interested in building an open financial system for the world, shoot me a note at jpollak@coinbase.com. Especially interested in iOS & Android engineers!
What will Coinbase do if there is a contentious hard-fork of the Ethereum chain and different USDC supporting exchanges decide to follow different forks?