Some of those points are interesting, especially for foreign transactions and quicker transfers but why would I buy stablecoins when I can make that 4 percent they're making on my money in my own savings account?
I work in financial regulation. I think you're under-rating how dangerous these can be in a liquidity crunch. They're not FDIC ensured and it's basically an unregulated Money Market Fund.
Huge opportunities down the line. But the regulatory framework isn't there yet. Like we don't even know what's in Tether for instance.
Obviously if you're in Venezuela you don't care. You have no alternatives. But no one in a developed economy should be using these over traditional alternatives yet.
I find this comparison interesting, especially because Bitcoin and stablecoins can serve quite different purposes despite both being part of the crypto world. It makes me wonder whether the real distinction is between an asset people hold as a store of value and one they use to move money. How far does the gold-and-silver analogy actually hold?
Why does Tether accept an inflationary currency in exchange for its stablecoins? How do they turn it into dollars without losing too much? Do they charge about premium?
Some of those points are interesting, especially for foreign transactions and quicker transfers but why would I buy stablecoins when I can make that 4 percent they're making on my money in my own savings account?
If you’re Zambian, the answer is obvious.
If you’re American, how confident are you that your government won’t become more seizure prone? Think civil asset forfeiture for example.
What if you want to spend dollars anywhere in the world?
Without fees or waiting 5 days?
I work in financial regulation. I think you're under-rating how dangerous these can be in a liquidity crunch. They're not FDIC ensured and it's basically an unregulated Money Market Fund.
Huge opportunities down the line. But the regulatory framework isn't there yet. Like we don't even know what's in Tether for instance.
Obviously if you're in Venezuela you don't care. You have no alternatives. But no one in a developed economy should be using these over traditional alternatives yet.
I find this comparison interesting, especially because Bitcoin and stablecoins can serve quite different purposes despite both being part of the crypto world. It makes me wonder whether the real distinction is between an asset people hold as a store of value and one they use to move money. How far does the gold-and-silver analogy actually hold?
Why does Tether accept an inflationary currency in exchange for its stablecoins? How do they turn it into dollars without losing too much? Do they charge about premium?