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If I buy a CD from a bank, it has a fixed APR and insured by the FDIC. If I buy a stock there's upside and downside, but regulated by the SEC. A stable coin h

by bb88 1y ago

If I buy a CD from a bank, it has a fixed APR and insured by the FDIC. If I buy a stock there's upside and downside, but regulated by the SEC. A stable coin has no upside and all downside.

OutOfHere 1y ago
> A stable coin has no upside and all downside. That is completely false since the stablecoin legislation passed this year requires the issuer to hold adequate funds backing their issuance. The stablecoin is in effect regulated by the government.
- bb88 1y ago
  There's still no FDIC for stable coins. If there's fraud, well, maybe you get your money back, maybe not. And there's still no interest to compensate for the risk of holding a stable coin.
  - OutOfHere 1y ago
    Personally I treat stablecoins as suitable for temporary holding only. I move to real cryptocurrency as soon as possible, to the few that appreciate in the long term despite their pumps and dumps.
    - bb88 1y ago
      I'm not against stable coins per se because they could offer a 7% APR to provide an upside to match the risk. A stable coin that can figure that out will draw money from Tether and Circle.
      - wbnns 1y ago
        I think we'll see this soon, perhaps on Tempo, the new L1 backed by Stripe and Paradigm.