The collateral for DAI are hihgly crypto correlated - 43.8% USDC, 32.1% ETH, 11.3% WBTC, 5.9% USDP, and others. ETH and WBTC are just Ethereum and BTC, both of which have dropped considerably recently. USDP somehow dropped to ~$0 since April. USDC is sworn to be 100% USD backed so let's take that at face value. DAI is said to have 150% over-collateralization. ETH & WBTC have dropped more than half. Let's say just off…
Doubtful, Dai is automatically destroyed as the value of its collateral falls via the mechanisms of liquidations and loan paybacks.
The collateral for DAI are hihgly crypto correlated - 43.8% USDC, 32.1% ETH, 11.3% WBTC, 5.9% USDP, and others. ETH and WBTC are just Ethereum and BTC, both of which have dropped considerably recently. USDP somehow dropped to ~$0 since April. USDC is sworn to be 100% USD backed so let's take that at face value. DAI is said to have 150% over-collateralization. ETH & WBTC have dropped more than half. Let's say just off…
I'm sorry but you don't know what you're talking about. Look into how Dai works, or check daistats.com
> no issues with tax&bank issues Sure about that bit? This may be the perception – that holding your assets in 'the crypto system' avoids tax issues – but the taxman will disagree. Swapping $BTC for $USDC or whatever your tether of choice is is a 'taxable event'. You've sold one security in exchange for another. It doesn't matter that they're both crypto. Now, it might be harder for the taxman to detect this event, w…
Depends on the jurisdiction. In most European countries for example, you only pay tax when cashing out
> when cashing out
Cashing out meaning "selling crypto for fiat"?
What about if you sell BTC for another crypto or for gold or ...
That makes no sense. You pay taxes on realized gains (i.e. when you cash out), not unrealized ones... otherwise people like Elon Musk would have to pay tens of billions of dollars in taxes and sell off part of their stock to even be able to pay the tax (and probably ruin the company in the process). The same applies to crypto, and even though it's mostly not needed (you pay tax on realized gains in most countries and…
Please check your local regulations on this. What Uwuemu says makes sense, but tax law does not have to make sense. I might be wrong, but I believe the IRS views every transaction as a taxable event. Crypto -> crypto included.
You are right. When you trade crypto->crypto, the IRS views it as if you traded crypto->USD then USD->crypto.
That makes no sense. You pay taxes on realized gains (i.e. when you cash out), not unrealized ones... otherwise people like Elon Musk would have to pay tens of billions of dollars in taxes and sell off part of their stock to even be able to pay the tax (and probably ruin the company in the process). The same applies to crypto, and even though it's mostly not needed (you pay tax on realized gains in most countries and…
Please check your local regulations on this. What Uwuemu says makes sense, but tax law does not have to make sense. I might be wrong, but I believe the IRS views every transaction as a taxable event. Crypto -> crypto included.
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 nothing to tax. Otherwise you're getting into a dangerous territory of soft banning crypto trade by way of purposefully obtuse tax code. Ban on a good by abusing the bureaucracy instead of properly dealing with it through the voters and their representatives.
The big question with Tether has been, if they are holding commercial paper, whose commercial paper? Traders who deal in commercial paper of real companies that do real stuff don't see Tether present in that market. The dollar amounts are too big to hide. The suspicion is that their "commercial paper" is high-interest loans to other cryptocurrency companies. With the whole crypto sector in decline, those loans are at…
Oh it’s even worse. For a while now some[0] have suggested part of the backing is in bonds issues by Chinese real estate companies [0] https://twitter.com/thelastbearsta1/status/14690072004965908...
Chinese real estate would be considerably better than crypto company loans, tbh.
I was able to send funds from US directly to a bank account of my friend in Ukraine near instantly for low single digit percent and I could do the same using western union(to my surprise). All without a fear that my currency will drop 10-20% in a day. Now about decentralization, I believe that most people hold their transactional crypto funds in a handful of exchanges and thus the dream of decentralized crypto transa…
the majority of crypto is being held in non custodial wallets, not exchanges. a better way to frame your comment: why does the world use Stripe and PayPal when you can just go to your bank and ask them to setup a multi day long wire process from bank A to B for less fees?
The 'wire process' is not "multi-day-long", plus a huge number of banks now participate in Zelle, which can be used for instantaneous fund transfers with zero fees. The biggest problem with Zelle is that it looks and feels like a circa-2002 web application.
> USDC (coinbase) is properly and regularly audited I've only found attestations just like USDT, where did you see an audit?
I’m sure I’ve seen an audit before but because Coinbase is a public company all finances have to be released so you should be able to see it there too?
USDC doesn't stand for USDCoinbase it stands for USDCentre, where Centre is a private consortium between Cirlce, Coinbase, and Bitmain.
So no, don't think there is any way to see the actual backing.
The big question with Tether has been, if they are holding commercial paper, whose commercial paper? Traders who deal in commercial paper of real companies that do real stuff don't see Tether present in that market. The dollar amounts are too big to hide. The suspicion is that their "commercial paper" is high-interest loans to other cryptocurrency companies. With the whole crypto sector in decline, those loans are at…
> This is how you get a 2008-type crash - loans which seem to be unrelated but are tied to a common market.
How does this happen again 15 years later? Is it because we ineffectively dealt with 2008? A result of the repeal of Glass-Steagall? Or have we over regulated banking to the point the miscreants went underground to build things like crypto?
I don't get it. Crashing over and over doesn't seem good for anyone.