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I couldn't disagree more. All of the projects I listed have radically different mechanisms, failure conditions, capital efficiencies, and value capture abilitie

I couldn't disagree more. All of the projects I listed have radically different mechanisms, failure conditions, capital efficiencies, and value capture abilities. It's a fascinating space that is in its infancy. And you're missing projects that aren't pegged to the dollar, but instead have dampened volatility floating price targets — like Reflexer and OlympusDAO. It's a rich, beautiful corner of a rapidly growing space.

Aperocky 5y ago
It's a rapidly inflating bubble like NFTs and subprime mortgages.
- xur17 5y ago
  What aspect of stablecoins makes them a bubble?
  - shkkmo 5y ago
    A rapidly rising market cap that depends on the expectation of continued growth of demand. Some stablecoins are more protected than others against drops in demand. However, without a compete backing the the currency a stablecoin, there is a point at which sufficient supply of the stablecoin cannot destroyed and the peg will break as supply outstrips demand. When the bubble pops there will be a lot of broken pegs but it most likey won't wipe out every stablecoin.
    - xur17 5y ago
      But that's not how the decentralized ones work. They aren't relying on "a rapidly rising market cap". Most of the stablecoins are backed by volatile assets (ETH, BTC, etc), but have automated systems to liquidate the collateral when price drops occur. The only real problem would be a very large drop in a very short period of time, and the big stablecoins already have already survived 50% drops in pretty short time spans.
  - Aperocky 5y ago
    It only really works on good times (read low interest rates). Good thing that the national debt is also out of control, which kind of restrict Fed's ability to raise interest rates without bankrupting the government.
    - xur17 5y ago
      I'm confused. Why are low interest rates required for stablecoins to work? If anything, for centralized stablecoins, high interest rates would mean more revenue for the corporation holding the assets.
      - Aperocky 5y ago
        low interest rates means there are abundance of US dollars floating around for people to engage in things like stable coins. high interest rates means less growth for any assets as liquidity gets tied/dries up. Interest rates are cyclical, all high interest rates cause a period of pain and death for semi-ponzi schemes that works during periods of low interest rates.
BrissyCoder 5y ago
> It's a rich, beautiful corner of a rapidly growing space. I can't imagine what kind of mindset/value-system one has to have to find this stuff rich and beautiful. It's ponzis all the way down. I would call it disingenuous and grubby.
- manquer 5y ago
  If they have drunk the cool-aid instead of just selling it, then they really believe in the ecosystem with faith that is unshakeable. All Ponzi scheme needs some level of that faith, without that it hard to sell to somewhat knowledgeable audience. Some of this tech sure eventually will become mainstream in a lot less glamorous and likely more centralized way than crypto enthusiasts like to think, current systems are not perfect certainly, they can leverage more tech, however they also have the benefit of evolving over a long period of time and have gone through the learning curve all the coin markets are going through.
manquer 5y ago
Newsworthy would be more accurate description. It is newsworthy when stuff blows up. Same reason SpaceX gets more coverage for its rocket development than say SLS or Blue Origin ( among other reasons). A lot of people watch car racing for the crashes. thats just human nature.

Aperocky 5y ago

It's a rapidly inflating bubble like NFTs and subprime mortgages.

xur17 5y ago
What aspect of stablecoins makes them a bubble?
- shkkmo 5y ago
  A rapidly rising market cap that depends on the expectation of continued growth of demand. Some stablecoins are more protected than others against drops in demand. However, without a compete backing the the currency a stablecoin, there is a point at which sufficient supply of the stablecoin cannot destroyed and the peg will break as supply outstrips demand. When the bubble pops there will be a lot of broken pegs but it most likey won't wipe out every stablecoin.
  - xur17 5y ago
    But that's not how the decentralized ones work. They aren't relying on "a rapidly rising market cap". Most of the stablecoins are backed by volatile assets (ETH, BTC, etc), but have automated systems to liquidate the collateral when price drops occur. The only real problem would be a very large drop in a very short period of time, and the big stablecoins already have already survived 50% drops in pretty short time spans.
- Aperocky 5y ago
  It only really works on good times (read low interest rates). Good thing that the national debt is also out of control, which kind of restrict Fed's ability to raise interest rates without bankrupting the government.
  - xur17 5y ago
    I'm confused. Why are low interest rates required for stablecoins to work? If anything, for centralized stablecoins, high interest rates would mean more revenue for the corporation holding the assets.
    - Aperocky 5y ago
      low interest rates means there are abundance of US dollars floating around for people to engage in things like stable coins. high interest rates means less growth for any assets as liquidity gets tied/dries up. Interest rates are cyclical, all high interest rates cause a period of pain and death for semi-ponzi schemes that works during periods of low interest rates.

BrissyCoder 5y ago

> It's a rich, beautiful corner of a rapidly growing space. I can't imagine what kind of mindset/value-system one has to have to find this stuff rich and beautiful. It's ponzis all the way down. I would call it disingenuous and grubby.

manquer 5y ago
If they have drunk the cool-aid instead of just selling it, then they really believe in the ecosystem with faith that is unshakeable. All Ponzi scheme needs some level of that faith, without that it hard to sell to somewhat knowledgeable audience. Some of this tech sure eventually will become mainstream in a lot less glamorous and likely more centralized way than crypto enthusiasts like to think, current systems are not perfect certainly, they can leverage more tech, however they also have the benefit of evolving over a long period of time and have gone through the learning curve all the coin markets are going through.

manquer 5y ago

Newsworthy would be more accurate description. It is newsworthy when stuff blows up. Same reason SpaceX gets more coverage for its rocket development than say SLS or Blue Origin ( among other reasons). A lot of people watch car racing for the crashes. thats just human nature.