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if you knew what a liquidity pool is you wouldn't have engaged in this conversation liquidity pools have solved all of this. locked liquidity pools solved it e

if you knew what a liquidity pool is you wouldn't have engaged in this conversation liquidity pools have solved all of this. locked liquidity pools solved it even better. edit for anyone passing by: liquidity pools are a fairly novel concept that allows cryptocurrencies to be exchangeable for more liquid cryptocurrencies without needing to beg exchanges to list your token. It is completely permissionless and has resulted in these systems having more liquidity and volume than non-permissionless systems, throughout 2020. Basically, anyone can form a market and they can broadcast publicly that the market won't go anywhere. This is new to crypto over the last 15 months, and is an improvement to all markets. Comes with its own new issues but the market has chosen it. https://www.coindesk.com/defi-flippening-uniswap-topples-coinbase-trading-volume https://www.coindesk.com/defi-flippening-uniswap-topples-coi... https://www.bloomberg.com/news/articles/2020-10-16/defi-boom-makes-uniswap-most-sought-after-crypto-exchange https://www.bloomberg.com/news/articles/2020-10-16/defi-boom... find a source you respect that shows you the same thing. No other asset class has assurances of secondary markets, even in mature markets people have just had to rely on actively traded markets continuing to exist in perpetuity with market makers simply being there without much understanding of how and why.

Nextgrid 6y ago
Unless I'm doing something shady or trying to dodge taxes/regulations, I still don't see why I would opt to be paid in any kind of crypto token over fiat, regardless of liquidity pools. With fiat, the banking system and legal system has my back, and technical mistakes can pretty much always be resolved. With crypto, I rarely or never have the legal system protecting me, am more exposed to fraud/shadiness from the various parties involved (exchanges - see Mt.Gox, etc), whoever provides the liquidity pool, etc, and am on the hook for any technical mistakes while doing the transactions (lost the private key or mistyped the address? Tough luck!). As another commenter has said, you'd pay in cash if it was equivalent. Given that you don't, it means you have something to gain from it not being cash. I'm not implying anything illegal here, but paying in "company scrip" clearly gives you an advantage that cash wouldn't. In this case, it seems to be all good as the counterparties are happy with the deal, but I don't buy the whole idea of it being just as good as cash for the aforementioned reasons.
- vmception 6y ago
  Your own issues with general use of cryptocurrencies are not anyone else's problem. Commerce occurs, and the things you wish for would also improve it more. In an employer-contractor relationship, non-performance is a problem with fiat or crypto. The courts would enforce it the same way, the point you think you are making simply isn't a strong point. And again regarding the banking system, if you don't know how to use your own payment networks thats nobody's problem but yours. "But... recourse!" seems to be the root of your argument, many contractors and merchants do not like Paypal and similar systems specifically because they only give recourse to the person that paid them, ME! So you've made a whole argument against my practice, when the reason people even want my practice is because it benefits them. And then there is me, I have explained exactly what I gain from it not being cash, my first post said that and I said it again. It's the exact same for any company that pays in equity: the company still keep its cash, and they still get a tax deduction from any expense they paid for. This goes one step further in that the company has not diluted any of its ownership. In both circumstances of shares or tokens, the issuing company's cost basis is $0.00. (Sometimes the deduction benefit is in that the company has bought back some tokens at some point, and that specific lot of tokens are exchanged for a service closer to the same market price). Fast, liquid, mutually beneficial, fairly instant final settlement. And maybe some of people involved actually know how to use a computer and don't mess up, you'd be surprised.
renewiltord 6y ago
Well, clearly some of the rest of us reading will be completely uninformed about what you two are talking about, so maybe you could enlighten us about what a liquidity pool is and why it's relevant. To me it seems pretty obvious that I shouldn't accept a niche token at all but clearly you think this is false, and I'm curious.
- vmception 6y ago
  I made an edit because the system wouldn't let me reply to your comment for 20 minutes.
  - renewiltord 6y ago
    Thank you. I will just continue the conversation here so that maybe you will respond at a future time. So if I understand this right, the gist of it is that any niche token is actually always tradeable against any other token, and the original token issuer cannot control the situation?
    - vmception 6y ago
      That’s correct. A lot of the year long boom in crypto has come from improvements of this technology. Basically, the mere existence of it does not provide incentive for anyone but the issuer to create a liquidity pool. Different organizations started creating “yield farms” that pay out in an additional tertiary token to people that add to liquidity pools. This has really sparked the rise of it, as well as even more innovations/new services.

Nextgrid 6y ago

Unless I'm doing something shady or trying to dodge taxes/regulations, I still don't see why I would opt to be paid in any kind of crypto token over fiat, regardless of liquidity pools. With fiat, the banking system and legal system has my back, and technical mistakes can pretty much always be resolved. With crypto, I rarely or never have the legal system protecting me, am more exposed to fraud/shadiness from the various parties involved (exchanges - see Mt.Gox, etc), whoever provides the liquidity pool, etc, and am on the hook for any technical mistakes while doing the transactions (lost the private key or mistyped the address? Tough luck!). As another commenter has said, you'd pay in cash if it was equivalent. Given that you don't, it means you have something to gain from it not being cash. I'm not implying anything illegal here, but paying in "company scrip" clearly gives you an advantage that cash wouldn't. In this case, it seems to be all good as the counterparties are happy with the deal, but I don't buy the whole idea of it being just as good as cash for the aforementioned reasons.

vmception 6y ago
Your own issues with general use of cryptocurrencies are not anyone else's problem. Commerce occurs, and the things you wish for would also improve it more. In an employer-contractor relationship, non-performance is a problem with fiat or crypto. The courts would enforce it the same way, the point you think you are making simply isn't a strong point. And again regarding the banking system, if you don't know how to use your own payment networks thats nobody's problem but yours. "But... recourse!" seems to be the root of your argument, many contractors and merchants do not like Paypal and similar systems specifically because they only give recourse to the person that paid them, ME! So you've made a whole argument against my practice, when the reason people even want my practice is because it benefits them. And then there is me, I have explained exactly what I gain from it not being cash, my first post said that and I said it again. It's the exact same for any company that pays in equity: the company still keep its cash, and they still get a tax deduction from any expense they paid for. This goes one step further in that the company has not diluted any of its ownership. In both circumstances of shares or tokens, the issuing company's cost basis is $0.00. (Sometimes the deduction benefit is in that the company has bought back some tokens at some point, and that specific lot of tokens are exchanged for a service closer to the same market price). Fast, liquid, mutually beneficial, fairly instant final settlement. And maybe some of people involved actually know how to use a computer and don't mess up, you'd be surprised.

renewiltord 6y ago

Well, clearly some of the rest of us reading will be completely uninformed about what you two are talking about, so maybe you could enlighten us about what a liquidity pool is and why it's relevant. To me it seems pretty obvious that I shouldn't accept a niche token at all but clearly you think this is false, and I'm curious.

vmception 6y ago
I made an edit because the system wouldn't let me reply to your comment for 20 minutes.
- renewiltord 6y ago
  Thank you. I will just continue the conversation here so that maybe you will respond at a future time. So if I understand this right, the gist of it is that any niche token is actually always tradeable against any other token, and the original token issuer cannot control the situation?
  - vmception 6y ago
    That’s correct. A lot of the year long boom in crypto has come from improvements of this technology. Basically, the mere existence of it does not provide incentive for anyone but the issuer to create a liquidity pool. Different organizations started creating “yield farms” that pay out in an additional tertiary token to people that add to liquidity pools. This has really sparked the rise of it, as well as even more innovations/new services.