Coinbase is launching support for the USDC stablecoin • Hacker News Board

Re: Coinbase is launching support for the USDC stablecoin

#51

Post by willpiers » Tue, Oct 23, 2018, 4:52 PM UTC

Permit wrote: post #38

JumpCrisscross wrote: post #23

Earlier quoted context omitted.

> Decentralized transactions are distinct from decentralized issuance Dollars can be transacted, online and offline, through a variety of means ranging from at the Federal Reserve to totally de-centralised.

Yes, but once I have acquired dollars and wish to send them to you I must involve a third party. Not involving that third party would be the sell here. I have no position in any cryptocurrency and am not trying to argue that USDC is better than USD. I'm just saying that stablecoins achieve most of the goals of a decentralized currency yet despite this they are not appealing to today's cryptocurrency community.

stablecoins achieve many of the original goals of bitcoin, but not any of the most important goals. the important goals are censorship resistance, and fixed monetary policy. Nothing in the crypto space addresses these goals better than Bitcoin.

Re: Coinbase is launching support for the USDC stablecoin

#52

Post by seanalltogether » Tue, Oct 23, 2018, 4:52 PM UTC

larrysalibra wrote: post #12

endijs wrote: post #7

I understand why stablecoin's are useful to the end user. I also understand how Bitfinex is cashing in on Tether. However how is Coinbase making money with USDC? They clearly will have considerable expenses (keeping reserve, legal team, development etc. etc.). But if I give them 1USD and get back 1USDC, which later can be exchanged back to 1 USD, where are they making money?

Presumably they'll charge you a fee to buy, sell and trade it just like any other asset. If coinbase is involved in keeping the reserve, they can invest it various assets and keep the earnings - think money market fund, but you don't earn any interest - coinbase/circle keep the interest.

> If coinbase is involved in keeping the reserve, they can invest it various assets and keep the earnings

If that's the case I wish they were up front about that fact. I think its completely reasonable that they would keep any earned interest as compensation for managing the coin, so just be honest about it.

Re: Coinbase is launching support for the USDC stablecoin

#53

Post by pezdeath » Tue, Oct 23, 2018, 4:52 PM UTC

endijs wrote: post #7

I understand why stablecoin's are useful to the end user. I also understand how Bitfinex is cashing in on Tether. However how is Coinbase making money with USDC? They clearly will have considerable expenses (keeping reserve, legal team, development etc. etc.). But if I give them 1USD and get back 1USDC, which later can be exchanged back to 1 USD, where are they making money?

Short term securities more than likely. Same way paypal/venmo makes money with your balance.

Re: Coinbase is launching support for the USDC stablecoin

#54

Post by mactrey » Tue, Oct 23, 2018, 4:52 PM UTC

cheeseomlit wrote: post #36

wcarron wrote: post #34

Earlier quoted context omitted.

What a strawman. Inflation BAAAAAD, right guys? C'mon. We all know why the Fed targets a relatively consistent rate of inflation. It's because deflation suppresses consumer spending. Not what you want in a consumer economy.

What if I want to save? Certainly seems kinda bad when my savings keeps losing value

Are you holding cash? The S&P500 is up something like 200% since 2008 so it's hard to understand how anyone's savings could have lost value in the past decade.

Re: Coinbase is launching support for the USDC stablecoin

#55

Post by JumpCrisscross » Tue, Oct 23, 2018, 4:53 PM UTC

cheeseomlit wrote: post #36

wcarron wrote: post #34

Earlier quoted context omitted.

What a strawman. Inflation BAAAAAD, right guys? C'mon. We all know why the Fed targets a relatively consistent rate of inflation. It's because deflation suppresses consumer spending. Not what you want in a consumer economy.

What if I want to save? Certainly seems kinda bad when my savings keeps losing value

> What if I want to save?

Buy Treasuries. Or shares of stock. This is the point of inflation: it forces savers to invest time into productively allocating capital.

Re: Coinbase is launching support for the USDC stablecoin

#56

Post by BeefySwain » Tue, Oct 23, 2018, 4:53 PM UTC

endijs wrote: post #7

I understand why stablecoin's are useful to the end user. I also understand how Bitfinex is cashing in on Tether. However how is Coinbase making money with USDC? They clearly will have considerable expenses (keeping reserve, legal team, development etc. etc.). But if I give them 1USD and get back 1USDC, which later can be exchanged back to 1 USD, where are they making money?

Presumably the same way that banks make money? They invest the money that you deposit.

Re: Coinbase is launching support for the USDC stablecoin

#57

Post by apo » Tue, Oct 23, 2018, 4:54 PM UTC

beaner wrote: post #45

apo wrote: post #43

Stablecoins appear to be the new ICO. USDC follows on the heels of the Gemini Dollar, and a raft of other stablecoins offered by fully-regulated bank-like entities. Oddly, there's nothing about regulatory compliance (AML/KYC) or fungibility in the announcement. Based purely on the article, one might get the idea that USDC can be traded between individuals without any third party oversight and in a censorship-resistan…

It can be traded directly. It's just an erc20 token.

I understand its an ERC20 token. Do you understand how Coinbase and Circle will remain within regulatory compliance (AML/KYC) regarding USDC and the obvious potential for money laundering?

Re: Coinbase is launching support for the USDC stablecoin

#58

Post by esotericn » Tue, Oct 23, 2018, 4:55 PM UTC

"Stablecoins" are neither "stable" or "coins".

Blockchain is a Semantic Wasteland: https://news.ycombinator.com/item?id=18267585

There are a few cryptocurrencies that are actually interesting. This is yet another nonsense money grab.

Re: Coinbase is launching support for the USDC stablecoin

#59

Post by rayvy » Tue, Oct 23, 2018, 4:55 PM UTC

Permit wrote: post #11

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…

> 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 car - I suppose the only drawback is that I'll actually be buying a lawn mower"

Re: Coinbase is launching support for the USDC stablecoin

#60

Post by fiatjaf » Tue, Oct 23, 2018, 4:55 PM UTC

Seriously, what is the point? Even if this is a perfectly honest and functioning system, if you're using a currency that is pretty much like the dollar, regulated as the dollar, inflated as the dollar, why not just use the dollar?