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If I wanted to own something that I could always redeem for $1, I would buy $1.
by bzxcvbn 4y ago
If I wanted to own something that I could always redeem for $1, I would buy $1.
- whimsicalism 4y agoNot always an option, depending on where you live.
- tgv 4y agoOr if you need to evade taxes and other tyrannical measures. Yes, being sarcastic.
- onlyrealcuzzo 4y agoIt's always an option if you have a meaningful amount of money.
- sonicggg 4y agoBut what if you're trying to avoid tax?
- PKop 4y agoUSDC
- once_inc 4y agoUnfortunately, dollars aren't digitally native, or easily transportable. It requires gatekeepers to give permission, which often isn't processed in real time.
- sumeno 4y agoIf you don't want gatekeepers I've got some bad news for you about stablecoins.
- whimsicalism 4y agoNobody is gatekeeped from buying Dai, what bad news do you have?
- sumeno 4y agoFor now, until they decide to "pause" the blockchain like Terra. Stablecoins are centralized and your ability to use them is entirely dependent on the central authority letting you.
- out_of_protocol 4y ago> "pause" the blockchain Good luck stopping Ethereum > Stablecoins are centralized Only some, like USDT, USDC. Just google what DAI is and how it managed.
- ironlake 4y agoCan Ethereum Classic be stopped?
- whimsicalism 4y agoNeither can be stopped unless you control the miners, what do you mean?
- 4y ago
- out_of_protocol 4y agoyou also need a bag and a plane/bus/etc ticket to give that heap of dollars to a desired seller. X bank dollar is not the same as USD, you can be locked out of your money quote easily. Plus all the other regular points if you want to buy or sell some crypto
- jacobsenscott 4y agoOr you can back your "stablecoin" with dollars. For each coin issued put a dollar in a vault. There is no other asset on earth pegged to the dollar, so it is impossible to back it with anything other than dollars.
- polygamous_bat 4y agoI keep hearing this narrative > you can be locked out of your money quote easily. But I am curious, do you have examples that show that this is really the corner case I should be worried about?
- out_of_protocol 4y agoGoogle examples, there are a lot of very much different cases, sometimes wild ones. As example, whole country of Russia was locked out of all non-RUB assets in their banks (at this moment restrictions are partially lifted), in Belarus you need 10+ work days to take at most 10K USD and 3K EUR out of bank per month.
- hef19898 4y agoIn bith cases we talk about international sanctions. So you are saying that one of crypto's advantages is, basically, illegal finance. Nice.
- out_of_protocol 4y ago> international sanctions Not really, in these cases banks themselves decided to not give away "their" money
- hippich 4y agoSimilarly, if I wanted to pay someone a $1, I would give them a $1. Except I am trying to send some cash to my retired mother in Belarus for a month and a half. She is not under any sanctions, her bank is not sanctioned. Yet wire transfer stuck in some Fed's system (for the second time, first time i sent it, it was just returned 3 weeks later without explanation, and only now I know the real reason.) Traditional money transferring companies all exited Belarus (PayPal, Western Union, etc.) Now we exploring ability to send some kind of crypto, either bitcoin or stablecoin, in Belarus as a last ditch effort to send over some $1s...
- pphysch 4y agoStay safe
- BetaDeltaAlpha 4y agoThis was one of the original use cases of Crypto! Have you looked at the Stellar Project? They've got a lot of remittance systems running on it that may suit you. Algorand is also a low-cost alternative, if you're looking to frequently send small amounts (assuming your mother has access to a fiat off-ramp like Binance).
- hippich 4y agoUnfortunately, most (all?) international transfers are no-go for her. So we are looking for someone inside Belarus who can do a cash transaction or local bank transfer instead.
- BetaDeltaAlpha 4y agoSorry to hear, best of luck
- LegitShady 4y agoIf you wanted to trade some other crypto for USD without incurring taxation issues, you could get a "pegged" stablecoin and hold that without incurring any taxation since you haven't redeemed anything for money, and maybe trade it for other coins later on if you so chose. There's function in the stablecoins in terms of crypto trading, but of course there's risk that your always pegged stablecoin isn't.
- koonsolo 4y agoSometimes you don't want to have large quantities in cash. So you store it in a bank. But sometimes you want it outside of the (possibly corrupted) legal system, or want to take money outside of the (corrupted) country. In that case, a stable cryptocurrency seems to do fine. It's truly online without any government being able to confiscate it (if you play it smart). It all depends on the use-case.
- vmception 4y agoThere are plenty of times when I don't want to use FEDwire, SWIFT, VISA, you name it. Its all dollar centric. I have plenty of clients that only want to use SEPA (europe and some european country colonies), because they're familiar with it and for some specifically because its not dollar centric. People fear the US will try to establish jurisdiction over them or inconvenience their ability to transact now or in the future, whether that is unfounded or not. (They're not legal experts, they just have chain letters forwarded around whatsapp) I'm sure you only want to use things that are familiar as well and would scoff at any client trying to do commerce in a system that isn't common to you. WISE (Transferwise) has extremely arbitrary limits, holdups, freezes, opaque issues, and a ridiculous terms of service if you've ever looked. Revolut is the same way. Western Union is expensive, and cumbersome. Paypal is a worse version of WISE, and is known for its international issues and patch work of countries it services. Let alone arbitrary freezes. Crypto is fast, exposure to any crypto is as short or as long as you want (worth saying because its a common imagined issue people have with using crypto because they think it'll change value alot over the time period they need it. its a very simple understanding). And people can convert it to something more liquid in their local economy with their local offramps. For many years I've basically used crypto to circumvent using international wires, the same transaction becoming a domestic wire and therefore less room for error and less arbitrary scrutiny. There are probably zero statistics on this. Client overseas pays me, I wire to USD domestically same day.