Pegged exposure to asset in which you have to pay taxes or consider acceptably volatile against goods of your daily need is practical. Most common one used these days is stablecoin (usdt, eurt, usdc, …). In many countries it is potentially going to be cbdc in the near future.
I’ve seen majority in our community being somehow ok with stablecoins yet hating on cbdcs. In my mind, cbdc carries less risk than stablecoin. Stablecoin carries risk of fiat + additional issuer risk.
Ideally exposure to such assets should be purely synthetic (like stable sats) but we dont have that right now.
Is there any good argument for eg tether against cbdc?
pull down to refresh
33 sats \ 2 replies \ @DarthCoin 20 Aug 2023
Fuck em all.
Only bitcoin.
When people will get it?
https://imgprxy.stacker.news/LL_IqzHhzDzWUh63PL97zoqENIoWh45-0FF2SOarqV8/rs:fit:600:500:0/g:no/aHR0cHM6Ly9pLnBvc3RpbWcuY2MvUmh2R3d2UmIvc2hpdGNvaW5zLWNoYW5nZS1teS1taW5kLmpwZw
reply
0 sats \ 1 reply \ @notgeld 20 Aug 2023
Not everybody is as rich as you. And your attitude screams "look how privileged I am, I am better Bitcoiner than you are".
reply
0 sats \ 0 replies \ @DarthCoin 21 Aug 2023
I am rich only in knowledge. Having some BTC from early years is not being rich.
reply
100 sats \ 1 reply \ @orthwyrm 21 Aug 2023
I think you are correct. Stablecoins will always have several layers of counterparty risk: The central bank that issues the fiat, the bank that issues the fiat-backed stablecoin (such as Tether), and the network the stablecoin is transferred on (such as Tron).
In fairness stablecoins have their own advantages. They are more private as you don't need KYC to send or receive them. They are also largely permissionless for this reason. Many cannot sign up for a bank account, but anyone can spin up a wallet on Tron.
This is not a defense of stablecoins. While I get the desire for them in third-world countries, I do not think the risks of stablecoins are properly understood by the average user. Bitcoin's volatility may be hard for a poor person to stomach, but at least that volatility tends to the upside. Stablecoins meanwhile can crash to 0.
reply
0 sats \ 0 replies \ @inverselarp OP 21 Aug 2023
That is great summary.
reply
0 sats \ 0 replies \ @notgeld 20 Aug 2023
That's free banking vs planned economy dilemma since stablecoins imply competition.
reply