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Cryptocurrency pegged to fiat is quite possibly the dumbest possible use of a cryptocurrency I can think of, except for Tether which was an obvious scam from th
by rubyist5eva 5y ago
Cryptocurrency pegged to fiat is quite possibly the dumbest possible use of a cryptocurrency I can think of, except for Tether which was an obvious scam from the get go.
- nikanj 5y agoIt's great for crime though. It's like USD cash, except you can transfer it instantaneously across the globe.
- AgentME 5y agoA lot of stablecoins sacrifice decentralization, but there are some like DAI that get you all of the (non-volatility-related) benefits of cryptocurrency like direct control without the price volatility. If you want to use cryptocurrency as money, the price volatility is often a big downside.
- zzok22 5y agoWhy is it dumb?
- rglullis 5y ago- Are you a merchant selling digital goods online and you want a zero-risk chance of dealing with chargebacks? You can accept stabletokens. No credit card fees as well. - Are you hodling a good amount of BTC/ETH/BAT tokens but you would like to get some liquidity, perhaps for a large purchase? Put your crypto as collateralized loan on MakerDAO, get DAI with very low interest and spend that: bonus point, if the crypto you were holding loses value and your loan gets liquidated, you get a tax write-off. - Do you live in some third-world country with poor countries and strong capital controls (e.g, Argentina)? It is a lot easier to buy crypto-pegged to the USD and EUR than it is to buy actual dollars and euros.
- rubyist5eva 5y agoThese are actually all very good points - thank you for sharing.