lottin

48 ms·

691.
by lottin 4y ago
As far as I know, every country in the world has capital controls.
692.
by lottin 4y ago
> unless the point is to avoid AML/KYC requirements That's the entire raison d'etre of these stablecoins.
693.
by lottin 4y ago
Also, try smuggling some cocaine into any country.
694.
by lottin 4y ago
> The argument against the gold standard is that there isn’t “enough” to represent money I literally have never heard this argument against the gold standard. What amount of gold would be needed for it to be able to sufficiently "re
695.
by lottin 4y ago
The misconception in your comment is that the reserve requirement is what limits a bank's ability to create money by extending loans.
696.
by lottin 4y ago
A stablecoin that was fully backed with dollar reserves would be fail-proof. The problem is such a stablecoin would also be unprofitable, because the issuer would have expenses but no revenue. The way they generate revenue is by investing
697.
by lottin 4y ago
This is like suggesting that a mechanic should read some car's owner's manual in order to learn how internal combustion engines work. Look, don't try derail the conversation. Your claim is that in the event that the issuer o
698.
by lottin 4y ago
And this matters why? Being an economist, I think I know how a currency peg works, but if you think I'm wrong feel free to explain it to me.
699.
by lottin 4y ago
Excuse my scepticism, but I'd like to hear a lawyer confirm that.
700.
by lottin 4y ago
I don't think you understand how a currency peg works. If USDC loses the peg, arbitrageurs will buy USDC and redeem them, pocketing the difference. This will create a buying pressure that will re-establish the peg. Therefore maintai
701.
by lottin 4y ago
Of course, it is, but they are arguing that it's not a taxable event, in some jurisdictions.
702.
by lottin 4y ago
I buy 100 USDC. I use these to buy some crypto-currency. 6 months later, I sell the crypto-currency for USDC, making a 10% profit. I sell the USDC for USD. Notice that I have made no profit from the sale of USDC, which is (supposedly)
703.
by lottin 4y ago
> You can always be sure that your funds are safer in your own wallet than on an exchange. How is that so? Do you also think that keeping cash under a mattress is safer that keeping it in a bank?
704.
by lottin 4y ago
If the issuer of USDC fails to redeem USDC with USD, the price of USDC in the market will collapse, so I'm not sure which "multiple parties" have to fail for USDC not to be redeemable. Further, keeping funds in a non-custodia
705.
by lottin 4y ago
Why is it safer? Isn't USDC issued by some entity, which promises to convert USDC back into USD?
706.
by lottin 4y ago
Which countries?
707.
by lottin 4y ago
It means selling the asset, full stop.
708.
by lottin 4y ago
If this is true, it simply means your tax code has a giant loophole that allows people avoid paying tax on capital gains by simply swapping an asset for another.
709.
by lottin 4y ago
Can you name a single country that doesn't have a "banking infrastructure", other than perhaps North Korea?
710.
by lottin 4y ago
Why would anyone pay 30% interest on a loan, in an environment of negative interest rates?
711.
by lottin 4y ago
When you hold Tether, you're taking a risk that your Tethers might not be redeemable in USD. As far as I know, this risk isn't compensated in any way, shape or form. When you deposit your Tethers somewhere, you're taking an
712.
by lottin 4y ago
Full collateralisation isn't enough to rule out a run on USDT, since the value of the collateral can vary depending on market conditions. We can be certain that one USDT will always be redeemable for one USD, as long as USDT is fully
713.
by lottin 4y ago
Providing liquidity doesn't mean anything. You need to think things through before putting your money into schemes you don't understand.
714.
by lottin 4y ago
What happens when someone steals your key?
715.
by lottin 4y ago
Sorry, I didn't see it. 23% of GDP is the value of the remittances that enter the country. This does not mean that remittance processing (which is an economic activity) represents 23% of GDP. Remittance processing is likely a tiny f
716.
by lottin 4y ago
Note that the money supply increases simply as a result of banks not holding full reserves against deposits. Whether the bank lends or not is not important, as far as the money supply is concerned. The same applies to crypto-currency exch
717.
by lottin 4y ago
If the bitcoins can be withdrawn at any time (i.e. without a notice of withdrawal), then these deposits are just like a current account, which means they are considered a component of the circulating supply of bitcoins (what we would call M
718.
by lottin 4y ago
It does seem to me that bitcoin holders are highly impressionable by a small number of influencers. They could easily be convinced of anything .
719.
by lottin 4y ago
> One of their largest industries (up there with tourism) is remittance processing What percentage of El Salvador's GDP does remittance processing represent?
720.
by lottin 4y ago
It doesn't have the resources nor a policy of "backing" bitcoin. By contrast, countries that issue their own currency have a central bank that is typically tasked with maintaining price stability, hence "backing" t

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