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Right! It's not that stable coins are decentralized, it's that the centralized holder is not in your jurisdiction and so your jurisdiction can't deface their mo
by datadrivenangel 4mo ago
Right! It's not that stable coins are decentralized, it's that the centralized holder is not in your jurisdiction and so your jurisdiction can't deface their money!
- abirch 4mo agoThe only bad thing with USD based stable coin is you have to trust that the USA will keep paying its debts longer than you hold the stable coin.
- skybrian 4mo agoThat sounds like a good bet.
- graemep 4mo agoThe US has no reason not to pay its debts. Its debts AFAIK are USD denominated. How often has a country defaulted on debt in its own currency? I can think of one example and I thought it was a stupid thing to do at the time (it was forced by creditors, presumably as a punishment) and it was not a complete default, but a haircut.
- abirch 4mo agoSorry, I was thinking hyperinflation as a de facto default. As in Germany, Brazil (Cruzeiro), Argentina, etc. If the US hits hyperinflation say, debt is 300% GDP in a decade at some point people will stop loaning it money and the dollar loses its value. Stable coins become worthless as well.