14 sats \ 3 replies \ @orthwyrm 27 Sep 2023 \ parent \ on: Stacker Saloon
If the goldbugs are right, why haven't gold-backed stablecoins taken off?
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Gold would skyrocket if that happens and I feel the elite don't want gold to trade above a certain level. They want to control the price of gold as much as possible.
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My point is that gold-backed stables do exist, but there's negligible demand for them (<1% marketcap of USD stables).
You'd think that gold-backed stables would be more desirable than USD because at least gold appreciates over time. And custodial risk for USD is perhaps even higher than that of gold (see Russia's frozen reserves, could easily happen to Tether). Yet no market for gold-backed stablecoins has really emerged.
Perhaps the reason for this is that nobody is actually saving in USD stables and so they don't care about long term appreciation and risk tolerance. But it's interesting to observe these markets shake out while tradfi is panicking over BRICS.
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Are they issued by reputable companies or are they specific country issued gold-backed stables? I'm from a BRICS country and I can tell you know, we as a country haven't seen any benefit from the promise of a new BRICS currency. I believe a currency is only as strong as its government even if its a gold-backed stable. Corruption and greed will destroy any currency, except Bitcoin off course.
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