Once again, the only thing that maintains value in an asset is the collective belief of said value. This applies to currencies and other assets. It doesn't matt

Once again, the only thing that maintains value in an asset is the collective belief of said value. This applies to currencies and other assets. It doesn't matter what assets you have backing a peg because there's always a trust element. Even if, say, the US dollar was 100% backed by gold, there'd still be a trust element that the government would honor redemptions. Once again, the US dollar has never been 100% backed by gold. It was a peg, which doesn't even require you to hold any gold. And FDR changed the peg, which was a sovereign devaluation. The same thing could've happened with 100% gold reserves. And what gives the US dollar its value is really the long dick of the US government. What we're seeing here once again if Crypto Andys learn exactly why the financial system is the way it is. An algorithmic stablecoin is ridiculous. Collateral helps but it all boils down to trust. Consider this quote: > Deus Finance reacted by halting the redemption process in order to try and stabilize the coin. This is exactly the sort of intervention a central bank performs when managing a currency. So what exactly are we gaining with crypto?