4 ms·

Why not a stablecoin with lower fees?

• jacquesm 5y ago
  Because I'm more than a bit skeptical about all of the groups jumping on the 'lets mint our own coin' bandwagon. The number of stories of scam coins is large enough that I'll take my chances with Bitcoin for the moment and see which ones of the others survive over the longer term. I'm also a bit allergic to being marketed to in the name of the class of product, 'stable' has certain associations that I don't think apply to any of the crypto coins.
  • baby 5y ago
    Usdt sure, although it’s working so far, but there’s plenty of legit stablecoin projects like usdc, or even paxos (which is what novi is using). Why isn’t stable applying to these coins?
    • astrange 5y ago
      I sent $50 in USDC yesterday and was charged $9 in fees, not counting the coinbase USD<>USDC fee which I think existed since I used a debit card. Legit crypto users[1] should let you pay with TransferWise. [1] ie online research chemical stores
      • baby 5y ago
        Ah interesting, I guess USDC relies on Ethereum and so you're eating ETH's fees? I've never used USDC myself. I'm hearing Celo fees are around 1 cents. Wise is also a great solution, but its speed is going to be dependent on a lot of factors: does it have a partnership with your bank, how long is the route it'll take, and how long each node will take to process a transfer on the route. It is streamlined though so the user experience is top notch, security wise it's a centralized system so the more people use it the more it becomes a single point of failure.
        • astrange 5y ago
          Oh, and we haven't managed to confirm the transaction yet because I sent slightly too much and Coinbase's UI won't show me the transaction ID, or even the amount sent after fees.
• Ekaros 5y ago
  How do stablecoins make money? That is how do they pay for everything they do? It either has to be fees or some sort of investment. And investments can always crash, thus resulting loss of money...
  • yokem55 5y ago
    Circle makes money on the yield they get from the treasury bills they hold. If US treasury bills crash, the stability of USDC will be the least of our worries.
  • baby 5y ago
    Transfer fees.
• jokethrowaway 5y ago
  Because you should be skeptical about their claims about being backed by real money.
  • baby 5y ago
    Some projects are actually extremely serious and audited. For example, Paxos/USDP, USDC. Diem/Libra's proposition was exactly that also.
    • spiralx 5y ago
      USDC has not been audited, they have only had attestations.