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> Can I check your bank account to see if the amount is equal to the price*qty of your token? People deposit BTC and ETH and other cryptos, and the smart contr

by 55555 9y ago

> Can I check your bank account to see if the amount is equal to the price*qty of your token? People deposit BTC and ETH and other cryptos, and the smart contract uses the conversion rate between these and USD in order to gauge its reserve in USD. Sounds risky but definitely sounds useful and like a step in the right direction!

wslh 9y ago
You answered the question yourself below but you cannot peg a currency to another if you don't have the reserves, less with cryptocurrencies where you don't have a central bank who can rescue you. This is economy 101 not an opinion. Fractional reserves can work in fiat currencies but not in the cryptocurrency world. For more information you can check research about this topic: https://scholar.google.com.ar/scholar?hl=en&as_sdt=0%2C5&q=convertibility+currencies+reserves&btnG= https://scholar.google.com.ar/scholar?hl=en&as_sdt=0%2C5&q=c...
- jstanley 9y ago
  It's a different set of tradeoffs compared to Tether. You gain the risk of insolvency, but you lose the risk of corruption.
  - wslh 9y ago
    Are you saying this to the average "non-professional" investor? When people read about a cryptocurrency that represents fiat money they think about something simple and they assume you have the money to convert back and forth. The first page clearly says "A decentralized cryptocurrency pegged the U.S. dollar". This message is a scam, plain scam, you don't need to bring the SEC to realized that. After reviewing all this thread I flagged the top comment.
    - jstanley 9y ago
      I'm not saying it to any investor, I'm arguing it from a purely disinterested perspective. I think it's a fascinating project. That the SEC thinks risk of insolvency is more of a problem than risk of corruption is irrelevant.
      - lurker456 9y ago
        words have meaning. "pegged" is a wrong and highly misleading term because it implies a level of safety that is not there. Whether it's fraudulently so is indeed a question for the courts and the SEC.
    - hathathat 9y ago
      Not even central banks can provide the guarantee you’re looking for - they can only print money to devalue their currency, but they can’t make it appreciate [1]! [1] https://en.m.wikipedia.org/wiki/Black_Wednesday https://en.m.wikipedia.org/wiki/Black_Wednesday

by 55555 9y ago

wslh 9y ago

You answered the question yourself below but you cannot peg a currency to another if you don't have the reserves, less with cryptocurrencies where you don't have a central bank who can rescue you. This is economy 101 not an opinion. Fractional reserves can work in fiat currencies but not in the cryptocurrency world. For more information you can check research about this topic: https://scholar.google.com.ar/scholar?hl=en&as_sdt=0%2C5&q=convertibility+currencies+reserves&btnG= https://scholar.google.com.ar/scholar?hl=en&as_sdt=0%2C5&q=c...

jstanley 9y ago
It's a different set of tradeoffs compared to Tether. You gain the risk of insolvency, but you lose the risk of corruption.
- wslh 9y ago
  Are you saying this to the average "non-professional" investor? When people read about a cryptocurrency that represents fiat money they think about something simple and they assume you have the money to convert back and forth. The first page clearly says "A decentralized cryptocurrency pegged the U.S. dollar". This message is a scam, plain scam, you don't need to bring the SEC to realized that. After reviewing all this thread I flagged the top comment.
  - jstanley 9y ago
    I'm not saying it to any investor, I'm arguing it from a purely disinterested perspective. I think it's a fascinating project. That the SEC thinks risk of insolvency is more of a problem than risk of corruption is irrelevant.
    - lurker456 9y ago
      words have meaning. "pegged" is a wrong and highly misleading term because it implies a level of safety that is not there. Whether it's fraudulently so is indeed a question for the courts and the SEC.
  - hathathat 9y ago
    Not even central banks can provide the guarantee you’re looking for - they can only print money to devalue their currency, but they can’t make it appreciate [1]! [1] https://en.m.wikipedia.org/wiki/Black_Wednesday https://en.m.wikipedia.org/wiki/Black_Wednesday