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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

#341

Post by Jommi »

lottin wrote: post #207
Jommi wrote: post #189

Earlier quoted context omitted.

Multiple parties need to fail for USDC to not be tradeable or redeemable to USD - holding in an exchange just requires one party to fail (exchange hacked, exit scam etc.) It's pretty simple risk logic.

If the issuer of USDC fails to redeem USDC with USD, the price of USDC in the market will collapse, so I'm not sure which "multiple parties" have to fail for USDC not to be redeemable. Further, keeping funds in a non-custodial wallet entails a huge operational risk that you're glossing over entirely.

Going to Circle to redeem your USDC for FIAT USD is not the only way of receiving FIAT USD from USDC. You can also sell it for another asset, and sell that for FIAT. Or sell it for FIAT on an exchange.

The OP was about the safety of "holding" fiat on a single exchange vs USDC on your wallet.

Your point about non-custodial wallet risk is a misonemer as this is purely about can you trust yourself more than trust an exchange.

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

#342

Post by Jommi »

sireat wrote: post #272
Jommi wrote: post #184

Earlier quoted context omitted.

You can do this w/ crypto but pay only a few cents. I can show it to you if you want.

I am extremely skeptical that it will only cost few cents. (I've sent and received BTC in early 2010s) On ramp and off ramp to fiat will kill you - whether through transaction fees or through slippage. Let's say I am in US with 10k USD cash and I want a family in Ukraine (let's say somewhere safeish like Lviv) to have that 10k USD in hand. Crypto is going to be more expensive than Western Union/Transferwise/SEPA/regu…

I mean there is no way you can get them USD as cash in hand if that's what you mean. Do you mean USD as in a multi-currency bank account like revolut?

Onramp via onjuno, convert to USDC, send to your polygon wallet, convert to jEUR on Jarvis, send jEUR to friends wallet, they offramp jEUR with 0 fees to their IBAN bank account in ukraine via mt.Pelerin.

You only pay the polygon token transfer fees here.

Times have changed since 2010!

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

#343

Post by web4 »

dmitriid wrote: post #328
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…

Quoted post unavailable.

it always comes back to the same argument: crypto is bad because a couple centralized companies handle this all for us just fine, and people in some countries already have great interbank transfers.

also please lose the ad hominem, it is not needed.

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

#344

Post by kgwgk »

ac29 wrote: post #335
kgwgk wrote: post #299

Earlier quoted context omitted.

> $39.0 billion U.S. Treasuries Par value or market value? If it’s the former the current value is surely less.

Why? Treasury bills are the appropriate choice here and are always bought at a discount to par.

If you bought $1000 worth of 1-year treasury bills (maturing in 12m) six months ago you have less than $1000 worth of treasury bills (maturing in 6m) today. That could be a problem if you need to recover today at least the $1000 that you put. (There may be no problem with much shorter maturities - or could be worse with bonds with longer maturity. The quote didn’t give any details.)

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

#345

Post by ricardobeat »

grey-area wrote: post #145
uwuemu wrote: post #96

Earlier quoted context omitted.

That's nice and all and I don't live in the US, but just imagining the way you would track all of this makes me shiver. Anyways, from my point of view (and also many countries point of view), the entire point of realized gain tax is to be the income tax for stock traders... i.e. income is what the government typically collects taxes on... when I convert BTC to DOGE (or whatever), there is no income, so there is nothi…

In the vast majority of countries including the UK, US and Europe this is a taxable event. Which country are you talking about here?

In the Netherlands you pay tax yearly, based on an estimated profit for your total holdings on January 1st. Taxing every stock trade seems insane, is it really how it works elsewhere?

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

#346

Post by Paradigma11 »

salawat wrote: post #322
Paradigma11 wrote: post #177

Earlier quoted context omitted.

In my opinion crypto (i am talking about PoS with smart contracts) is about having a decentralized open source/standards cloud for financial services/ transactions. That opens up many possibilities but everything has been completely drowned out by VCs starting defi ponzi schemes and other shenanigans.

PoS is centralizing by it's very nature.

Show me. There are PoS chains running for a few years, so this should be observable.

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

#347

Post by lottin »

Jommi wrote: post #341
lottin wrote: post #207

Earlier quoted context omitted.

If the issuer of USDC fails to redeem USDC with USD, the price of USDC in the market will collapse, so I'm not sure which "multiple parties" have to fail for USDC not to be redeemable. Further, keeping funds in a non-custodial wallet entails a huge operational risk that you're glossing over entirely.

Going to Circle to redeem your USDC for FIAT USD is not the only way of receiving FIAT USD from USDC. You can also sell it for another asset, and sell that for FIAT. Or sell it for FIAT on an exchange. The OP was about the safety of "holding" fiat on a single exchange vs USDC on your wallet. Your point about non-custodial wallet risk is a misonemer as this is purely about can you trust yourself more than trust an exc…

I don't think you understand how a currency peg works. If USDC loses the peg, arbitrageurs will buy USDC and redeem them, pocketing the difference. This will create a buying pressure that will re-establish the peg. Therefore maintaining the peg depends crucially on the issuer's ability to redeem USDC. If the issuer fails to redeem USDC, it's game over. The point that I made about the risks associated with using non-custodial wallets is also very valid.

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

#348

Post by lottin »

krzyk wrote: post #329
krzyk wrote: post #321

Earlier quoted context omitted.

Poland.

Also in France swap between crypto is not a taxable event ( https://koinly.io/guides/crypto-tax-france/ )

Excuse my scepticism, but I'd like to hear a lawyer confirm that.

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

#349

Post by louloulou »

labrador wrote: post #319
PKop wrote: post #242

Earlier quoted context omitted.

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

> My local currency (GBP) is weak atm and falling against the dollar That's an edge case that isn't a concern for Americans who are most enthusiastic about crypto and most involved in the crypto revolution. This is pointed out often and the crypto enthusiasts don't get it. Crypto for most of us is YAGNI YAGNI! Because you ain't gonna need it https://www.youtube.com/watch?v=fPJohxVLJu0

Maybe individuals are in a better position to judge whether or not they need something in their own lives. And if they use something, it's usually a pretty good indication that it is useful to them.

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

#350

Post by Closi »

web4 wrote: post #210
Closi wrote: post #178

Earlier quoted context omitted.

Well paying for an abortion isn't really an issue at the moment unless i'm missing something (you can just use cash? The issue here is insurance cover, but that doesn't change). Also I have tried to search for 'pay for an abortion with cryptocurrency' but can't find anything relevant on this happening in reality (other than people suggest it could possibly happen?). How would paying in crypto avoid app store fees? Pr…

it’s easy to dismiss nft and the like if you are dead-set on your opinion that it’s all ponzi, but it is making traction in art and media: see Christie’s and Sotheby’s and a variety of notable artists and galleries not to mention Meta, Spotify and other platforms. > you can just use cash? this question sorta gets at one of the primary values of crypto, that it’s peer to peer, transferred non custodially and pseudonym…

> it’s easy to dismiss nft and the like if you are dead-set on your opinion that it’s all ponzi, but it is making traction in art and media

The point is it's not buying art though.

I can sell you an NFT of my house, and promise to only ever mint one NFT of my house, but that's different to selling you my house.

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