23 ms·

Serious question: What is wrong with this?

• relax88 5y ago
  The “corporate paper” backing the now nearly $100 BILLION of issued stablecoins relies largely on crypto exchanges to continue making money in order to have any value whatsoever. This is basically a giant distributed Ponzi scheme resembling wildcat banks of the early 1800s. Customer US dollars come into the market, USD goes out into the pockets of crypto insiders, and the crypto market remains propped up by the “value” of these stablecoins. The only thing that keeps it going is that the stablecoin issuers (same people who are running the exchanges) have no incentive to collect the debt they are owed so everyone is happy (for now). Crypto fans like to think they are innovating but all they’ve done is found a way to circumvent regulation and try a concept that was ended in 1863 by the national bank act. https://en.m.wikipedia.org/wiki/Wildcat_banking https://en.m.wikipedia.org/wiki/Wildcat_banking If you think this ends any other way than regulation and tears I’m not sure what to tell you.