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Stablecoins are an unfortunate side-effect of limited banking for the crypto industry. For the longest time, even legitimate exchanges had issues getting deposi
by rawtxapp 5y ago
Stablecoins are an unfortunate side-effect of limited banking for the crypto industry. For the longest time, even legitimate exchanges had issues getting deposits/withdrawals working properly with normal banking system.
Most traders I know use tether to move funds between exchanges for arbitrages and/or wait out a correction. Some are also using it to generate yield, but other than that, nobody is holding onto it for the very long term.
And Tether is not the only game in town, USDC (which is by well known/regulated entities here in US) has been getting a lot of traction, it now has about 1/3rd of Tether's market cap.
- fock 5y agoimho this observation of you just adds to every "stablecoins are a scam"-post. If there is indeed no significant outflow out of the stable-crypto system, I don't know what's stands in the way of companies to just print money out of thin air in there - which then goes to prop up bitcoin, bringing in real money from the bagholders.
- bob33212 5y agoIronically they are doing exactly what the fed does to avoid bankruptcy, just keep the printing presses going whenever your economy is having trouble. As long as you can print infinite money you can always buy BTC at 25k-40k (Keeping your collateral solvent). You can always attract more USD by increasing the interest rates. It only ends when a regulator or judge steps in and asks them to pause their operations for a week for an investigation to begin.
- menzoic 5y agoStablecoins have utility even when there is banking available. The benefits are that its much faster to transfer globally in minutes and works on weekends.