4 ms·

Tether actually has one of the better business models out of all of it. They take real dollars, print fake dollars, then buy bonds/treasuries (and gold) with th

Tether actually has one of the better business models out of all of it. They take real dollars, print fake dollars, then buy bonds/treasuries (and gold) with the real dollars. https://x.com/diogomonica/status/2019452516786925756 https://x.com/diogomonica/status/2019452516786925756

Ekaros 8mo ago
I am too sensible for financial markets. As such I just do not get why money would keep getting poured into the system. And not enough would exit... At best you are buying a dollar with dollar. Just doesn't compute for me.
- csa 8mo ago
  > At best you are buying a dollar with dollar. There are at least two scenarios in which “just a dollar” is a great outcome for someone purchasing a stable coin (assuming that it’s actually stable): 1. You want the convenience of digital coin transfers/payments without the variance of price swings (e.g., recent Bitcoin). This can be especially useful when you have access to a phone but limited or no direct access to modern banking facilities. 2. It’s easy to get your local currency onto an exchange, but it’s not easy or advisable to have a dollar bank account or keep large amounts of dollars in cash in your locale. 3. (I guess for completeness) You want to engage in activities that are of questionable legality (e.g., drug sales in certain places, online poker in most of the US, etc.).
  - latchkey 8mo ago
    4. Collateral for lending/borrowing protocols.
- cykros 8mo ago
  It doesn't make sense for Americans, or anyone with access to a dollar denominated bank account. For the other 80% of the planet though, it's a game changer. Rough estimate, but feels fair, as outside the US most people can't have one without substantial access to capital. At the end of the day, it's just another IOU, much like a bank deposit, except instead of getting the 0.1% yield and FDIC (IF you're in the US), you get the ability to transact 24/7 across borders in a much faster manner than even bank wires, let alone ACH payments.
  - latchkey 8mo ago
    Still one of my favorite comments along these lines: https://news.ycombinator.com/item?id=26238410 https://news.ycombinator.com/item?id=26238410
donavanm 8mo ago
… and keep the interest from those and their “high value commercial paper.” Now, why this is better than a money market fund, and regulated similarly… no idea.

Ekaros 8mo ago

I am too sensible for financial markets. As such I just do not get why money would keep getting poured into the system. And not enough would exit... At best you are buying a dollar with dollar. Just doesn't compute for me.

csa 8mo ago
> At best you are buying a dollar with dollar. There are at least two scenarios in which “just a dollar” is a great outcome for someone purchasing a stable coin (assuming that it’s actually stable): 1. You want the convenience of digital coin transfers/payments without the variance of price swings (e.g., recent Bitcoin). This can be especially useful when you have access to a phone but limited or no direct access to modern banking facilities. 2. It’s easy to get your local currency onto an exchange, but it’s not easy or advisable to have a dollar bank account or keep large amounts of dollars in cash in your locale. 3. (I guess for completeness) You want to engage in activities that are of questionable legality (e.g., drug sales in certain places, online poker in most of the US, etc.).
- latchkey 8mo ago
  4. Collateral for lending/borrowing protocols.
cykros 8mo ago
It doesn't make sense for Americans, or anyone with access to a dollar denominated bank account. For the other 80% of the planet though, it's a game changer. Rough estimate, but feels fair, as outside the US most people can't have one without substantial access to capital. At the end of the day, it's just another IOU, much like a bank deposit, except instead of getting the 0.1% yield and FDIC (IF you're in the US), you get the ability to transact 24/7 across borders in a much faster manner than even bank wires, let alone ACH payments.
- latchkey 8mo ago
  Still one of my favorite comments along these lines: https://news.ycombinator.com/item?id=26238410 https://news.ycombinator.com/item?id=26238410

donavanm 8mo ago

… and keep the interest from those and their “high value commercial paper.” Now, why this is better than a money market fund, and regulated similarly… no idea.