1317 sats \ 7 replies \ @petertodd 17 Oct \ on: Why stablecoins and stablechannels are dumb bitcoin
No, they're different. They're a better short term value for people who need to store fiat. That's a perfectly valid use case.
Like it or not, a lot of people have fiat-denominated obligations that they need to be able to reliably pay. The volatility of BTC relative to their fiat currencies is expensive to deal with.
Exactly. Peter is right.
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You do mean to simply say, people need FIAT sometimes and not that there's any purpose for stablecoins whatsoever right?
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No, they're different
Interesting comment. When two things compete in the same category ("store of value"), they are either equal, or one is worse. I say stablecoins are worse in this category. You say "No." I am surprised.
They're a better short term value for people who need to store fiat.
I do not admit the existence of people who "need" to store fiat. If they exist, blockchains and lightning channels are a worse place to do that than other systems like sql databases
a lot of people have fiat-denominated obligations that they need to be able to reliably pay
They do not need to create these fiat-denominated obligations, and once entered, they usually have escape clauses
The volatility of BTC relative to their fiat currencies is expensive to deal with
True, sometimes. But its volatility trend is helpful over time. Patience fixes this.
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When two things compete in the same category ("store of value"), they are either equal, or one is worse.
Nope. With enough experience you see that usually there aren't better/worse things - only trade-offs. Things are not one-dimensional as you suggest.
If they exist, blockchains and lightning channels are a worse place to do that than other systems like sql databases
What about people that are blocked from banking system? Uncensorability is the main feature of bitcoin blockchain.
They do not need to create these fiat-denominated obligations, and once entered, they usually have escape clauses
Citation needed. Of course most people have fiat-denominated obligations and saying they don't, won't change the factual reality.
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None of your assumptions correlate to reality. It's the reason stablecoins have such a huge market.
If they exist, blockchains and lightning channels are a worse place to do that than other systems like sql databases
Other people answered the rest of your comment well. But for this specifically, you're wrong. SQL databases have essentially zero auditing capabilities.
Even in an environment with centralized trusted third parties, blockchains are better than pure SQL databases. It's to the point where I would be very dubious about working on a trusted third party system with significant dollar value, that didn't use a blockchain for auditing.
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