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Could the US Dollar Be Crypto's Killer App?

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Re: Could the US Dollar Be Crypto's Killer App?

#2

Post by tw04 »

No, it couldn't. Unless the rest of the western world is ready to roll the dice on whether China and Russia want to expand their empires - they aren't moving away from the dollar.

I have no doubt after the Trump administration they are all taking a long, hard look at building up their military power to be self-sufficient, but those timelines are measured in decades, not months. Anyone who thinks that moving away from the dollar is a simple matter of currency is naive, delusional, or both.

Re: Could the US Dollar Be Crypto's Killer App?

#3

Post by shadowgovt »

tw04 wrote: post #2

No, it couldn't. Unless the rest of the western world is ready to roll the dice on whether China and Russia want to expand their empires - they aren't moving away from the dollar. I have no doubt after the Trump administration they are all taking a long, hard look at building up their military power to be self-sufficient, but those timelines are measured in decades, not months. Anyone who thinks that moving away from…

The key point in the article is that crypto (not BTC, but stablecoins pegged against dollar, euro, and/or yen values) offers a way for people who normally have few ways to access dollars to get their hands on them. It's not about the dollar-using world moving to crypto---it's about the citizens in world that doesn't use a currency strong enough to print their way out of a market implosion moving to the dollar via crypto.

Re: Could the US Dollar Be Crypto's Killer App?

#5

Post by [deleted] »

tw04 wrote: post #2

No, it couldn't. Unless the rest of the western world is ready to roll the dice on whether China and Russia want to expand their empires - they aren't moving away from the dollar. I have no doubt after the Trump administration they are all taking a long, hard look at building up their military power to be self-sufficient, but those timelines are measured in decades, not months. Anyone who thinks that moving away from…

[deleted]

Re: Could the US Dollar Be Crypto's Killer App?

#6

Post by solotronics »

I have been wondering why the US doesn't make a trial crypto dollar. If it doesn't work out what is the cost? Relatively nothing. If it does work out? it would strengthen the USD position as the global settlements layer and give the US control over a new monetary domain.

For examples of this see LIBOR/"Eurodollar"

Re: Could the US Dollar Be Crypto's Killer App?

#8

Post by georgyo »

SideburnsOfDoom wrote: post #4

At guess, "No" https://en.wikipedia.org/wiki/Betteridge%27s_law_of_headline... after reading the article ... still "No".

Never heard of betteridge before, and was thinking the answer to headlines is normally yes...

The Wikipedia article you link to states a study of ~3000 articles where the most common answer is infact yes.

Re: Could the US Dollar Be Crypto's Killer App?

#9

Post by tw04 »

shadowgovt wrote: post #3
tw04 wrote: post #2

No, it couldn't. Unless the rest of the western world is ready to roll the dice on whether China and Russia want to expand their empires - they aren't moving away from the dollar. I have no doubt after the Trump administration they are all taking a long, hard look at building up their military power to be self-sufficient, but those timelines are measured in decades, not months. Anyone who thinks that moving away from…

The key point in the article is that crypto (not BTC, but stablecoins pegged against dollar, euro, and/or yen values) offers a way for people who normally have few ways to access dollars to get their hands on them. It's not about the dollar-using world moving to crypto---it's about the citizens in world that doesn't use a currency strong enough to print their way out of a market implosion moving to the dollar via cry…

But they aren't getting their hands on dollars, they're getting their hands on crypto claiming to be tied to the dollar. Tether did the same - until they didn't. You can't be tied to the dollar without backing your coin with dollars. You can't possibly back your coin with sufficient dollars without US government approval. You aren't getting approval without following the same regulations as any other bank, which is what made getting dollars difficult in the first place.

Which means the only alternative is attempting to supersede the dollar by pegging to it but not actually being backed by it. Which, again, will never happen.

Re: Could the US Dollar Be Crypto's Killer App?

#10

Post by Retric »

coinward wrote: post #7

Arent stable coins just an appeal to central banks expansionary policy? Bitcoin was created as an alternative set of values and seems like cryptos killer app to me

Bitcoin was created to solve micro transactions. https://bitcoin.org/bitcoin.pdf

The cost of mediation increases transaction costs, limiting the minimum practical transaction size and cutting off the possibility for small casual transactions, and there is a broader cost in the loss of ability to make non-reversible payments for non- reversible services.

It’s the community that pivoted to something else.

PS: Two different non reversible transactions sets up the two generals problem which bitcoin does not solve. https://en.wikipedia.org/wiki/Two_Generals%27_Problem

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