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I'm in the same boat. Seriously, WTF?! We really can't have centralized entities issuing stable coins, can we. The real solution is DAI, right?

lugged 5y ago
Just hold BUSD if you're concerned, that really is safe, even in turbulent market conditions. Not financial advice.
- ethanbond 5y ago
  Why exactly would you think BUSD is safe? Buy USD. Financial advice.
  - kenneth 5y ago
    Why would you think USD is safe? It's been dropping precipitously over the past 18 months as the Federal Reserve just increases the money supply exponentially. Just check the USD/CHF pair for an example.
    - ethanbond 5y ago
      BUSD's risk is a superset of USD's, no? It's just USD but you subtract the part where the world's most powerful military cares about it and then you add in a part where random crypto people can add their own fraud.
    - yunohn 5y ago
      How is this solved by buying a stablecoin? It’s pegged to 1 USD regardless of inflation.
unyttigfjelltol 5y ago
>We really can't have centralized entities issuing stable coins, can we. You can. It's called a 'bank' and they're heavily regulated. Instead, what crypto has are wildcat banks. You've never heard that term because when they existed, 150 years ago, "[b]ank closures and outright scams regularly occurred, leaving people with worthless money."[1] Sound familiar? [1] https://en.m.wikipedia.org/wiki/Wildcat_banking https://en.m.wikipedia.org/wiki/Wildcat_banking
- jameshart 5y ago
  That’s an absolutely fascinating Wikipedia rabbit hole. I would pay good money to read a Neal Stephenson book set among Michigan wildcat bankers and railroad venture capitalists in the 1830s…
leppr 5y ago
The reason the crypto world uses dollar-pegged tokens in the first place is for their relatively stable value. The downside is that obviously this stability is not perfect, and it's managed by a centralized entity, which as monstrously big and powerful it may be, is still a single point of failure with its own interests. The real ultimate solution is to detach from the US dollar and get value stability from somewhere else, e.g. RAI[1]. [1]: https://reflexer.finance/ https://reflexer.finance/
freddieoduks 5y ago
Unfortunately DAI is also now collateralised by USDC, I read somewhere is up to 30% (haven't been able to verify) but I'm not sure what effect it'll have on DAI if USDC collapses. More here: https://www.reddit.com/r/MakerDAO/comments/nwydtj/what_is_the_point_of_giving_usdc_as_a_collateral/ https://www.reddit.com/r/MakerDAO/comments/nwydtj/what_is_th...

lugged 5y ago

Just hold BUSD if you're concerned, that really is safe, even in turbulent market conditions. Not financial advice.

ethanbond 5y ago
Why exactly would you think BUSD is safe? Buy USD. Financial advice.
- kenneth 5y ago
  Why would you think USD is safe? It's been dropping precipitously over the past 18 months as the Federal Reserve just increases the money supply exponentially. Just check the USD/CHF pair for an example.
  - ethanbond 5y ago
    BUSD's risk is a superset of USD's, no? It's just USD but you subtract the part where the world's most powerful military cares about it and then you add in a part where random crypto people can add their own fraud.
  - yunohn 5y ago
    How is this solved by buying a stablecoin? It’s pegged to 1 USD regardless of inflation.

unyttigfjelltol 5y ago

>We really can't have centralized entities issuing stable coins, can we. You can. It's called a 'bank' and they're heavily regulated. Instead, what crypto has are wildcat banks. You've never heard that term because when they existed, 150 years ago, "[b]ank closures and outright scams regularly occurred, leaving people with worthless money."[1] Sound familiar? [1] https://en.m.wikipedia.org/wiki/Wildcat_banking https://en.m.wikipedia.org/wiki/Wildcat_banking

jameshart 5y ago
That’s an absolutely fascinating Wikipedia rabbit hole. I would pay good money to read a Neal Stephenson book set among Michigan wildcat bankers and railroad venture capitalists in the 1830s…

leppr 5y ago

The reason the crypto world uses dollar-pegged tokens in the first place is for their relatively stable value. The downside is that obviously this stability is not perfect, and it's managed by a centralized entity, which as monstrously big and powerful it may be, is still a single point of failure with its own interests. The real ultimate solution is to detach from the US dollar and get value stability from somewhere else, e.g. RAI[1]. [1]: https://reflexer.finance/ https://reflexer.finance/

freddieoduks 5y ago

Unfortunately DAI is also now collateralised by USDC, I read somewhere is up to 30% (haven't been able to verify) but I'm not sure what effect it'll have on DAI if USDC collapses. More here: https://www.reddit.com/r/MakerDAO/comments/nwydtj/what_is_the_point_of_giving_usdc_as_a_collateral/ https://www.reddit.com/r/MakerDAO/comments/nwydtj/what_is_th...