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I would rather bear the greater volatility of holding the underlying cryptocurrency, and get to enjoy the upside potential, than hold a stable value coin that h

by mbrock 9y ago

I would rather bear the greater volatility of holding the underlying cryptocurrency, and get to enjoy the upside potential, than hold a stable value coin that has no potential to appreciate and a greater than zero probability of going to zero. That's about what kind of risks and rewards you want for your investments or savings. If you consider the unit of account for a debt, it seems unlikely that you'll have the same preference. If a trustworthy stablecoin arrives, you will probably want to collateralize some of your other assets to lend stablecoin just to participate in trades and contracts. Most people don't want stuff to be priced in a volatile unit. Of course I have to believe this because I do some work on Maker! By the way, Maker's idea of a stablecoin (the dai, the planned successor to sai) isn't pegged. The dai value floats on exchanges while the issuance system reacts to the market prices and tweaks its own parameters to incentivize medium term stability. In the longer term, the stablecoin might be somewhat deflationary or inflationary even compared to its own stability anchor (the SDR currency basket).

DennisP 9y ago
What's the best introduction to the Maker system? Something that explains clearly how the current design works.
- mbrock 9y ago
  A pretty good introduction would be the three videos linked on https://makerdao.com/ https://makerdao.com/ (overview, how dai works, and how MKR works). The current revision of the white paper should lay out the motivation and mechanics of the system without being too verbose: https://github.com/makerdao/docs/blob/master/Dai.md https://github.com/makerdao/docs/blob/master/Dai.md If there's something about it that doesn't make sense to you or seems poorly explained, let me know, or you can join the chat/subreddit to discuss.
CryptoPunk 9y ago
>>That's about what kind of risks and rewards you want for your investments or savings. True, if I were a retailer and not looking to invest long-term in cryptocurrency for example, I might prefer to receive a stable coin rather than a cryptocurrency, and then eventually liquidate it for fiat it or exchange it for goods/services. >>If a trustworthy stablecoin arrives, you will probably want to collateralize some of your other assets to lend stablecoin just to participate in trades and contracts. That's true, but that's a big 'if' in my opinion.

by mbrock 9y ago

DennisP 9y ago

What's the best introduction to the Maker system? Something that explains clearly how the current design works.

mbrock 9y ago
A pretty good introduction would be the three videos linked on https://makerdao.com/ https://makerdao.com/ (overview, how dai works, and how MKR works). The current revision of the white paper should lay out the motivation and mechanics of the system without being too verbose: https://github.com/makerdao/docs/blob/master/Dai.md https://github.com/makerdao/docs/blob/master/Dai.md If there's something about it that doesn't make sense to you or seems poorly explained, let me know, or you can join the chat/subreddit to discuss.

CryptoPunk 9y ago

>>That's about what kind of risks and rewards you want for your investments or savings. True, if I were a retailer and not looking to invest long-term in cryptocurrency for example, I might prefer to receive a stable coin rather than a cryptocurrency, and then eventually liquidate it for fiat it or exchange it for goods/services. >>If a trustworthy stablecoin arrives, you will probably want to collateralize some of your other assets to lend stablecoin just to participate in trades and contracts. That's true, but that's a big 'if' in my opinion.