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This Is The 'Single Largest Arbitrage In Human History'www.zerohedge.com/crypto/crypto-fund-manager-single-largest-arbitrage-human-history
731 sats \ 19 comments \ @siggy47 27 Mar econ
Whether we like it or not?
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141 sats \ 0 replies \ @jgbtc 27 Mar
There is so much incentive is to push USD stablecoins on the world, and the demand is insatiable. We should focus on making the bridge to bitcoin as easy as possible because stablecoins are happening no matter how much we dislike them.
And to be honest with myself, I must acknowledge that access to USD has made my bitcoin journey immensely easier. I can't deny someone else the same advantage as long as it's still possible to buy bitcoin with fiat.
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78 sats \ 0 replies \ @SimpleStacker 27 Mar
imo, it is a form of regulatory arbitrage. It's true that you're getting "US dollars" into the hands of people who want them, but it's mainly because the legal and regulatory frameworks haven't caught up to how to deal with them.
It reminds me a bit of Uber, which also started with some regulatory arbitrage, because they weren't regulated in the same way as traditional taxis.
The difference is that Uber had an underlying core of economic value. Firstly, because traditional taxis were monopolized, but also secondly, the app-based ride-sharing framework allowed non-professional taxi drivers to enter the market on a flexible part-time basis using capital they already owned.
So the question with stablecoins is: what's the underlying core of economic value? I suppose, from a near-term perspective, anything pegged to the dollar is more desirable than many national currencies worldwide. So that's an economic value... but it seems circumstantial rather than having anything to do with the fundamental characteristics of stablecoins. Another issue is this tricky little detail about the peg. Can they really maintain the peg and can they be trusted to?
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74 sats \ 0 replies \ @grayruby 27 Mar
Haha the crypto people have failed so miserably at every narrative that all they have left with are USD on the blockchain.
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41 sats \ 1 reply \ @Satosora 27 Mar
So the US government has to waste more money monitoring everyone else? They cant even manage to stay on budget on anything, how much more do we want to balloon our debt?
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0 sats \ 0 replies \ @siggy47 OP 27 Mar
It would be a great investment for the US government. It's the average US citizen and the rest of the world I'm worried about.
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36 sats \ 3 replies \ @022fbc9cef 27 Mar
Why has no one done this:
  1. Create a decentralized network (blockchain, whatever) that doesn’t have its own token but just uses Bitcoin as a unit.
  2. Bitcoin is locked into this network through Bitcoin scripts. Perpetual swap is used to peg the Bitcoin value to USD.
  3. The network can send USD to other people. Fees are paid in USD and Bitcoin is claimed out of the network as compensation for fees.
  4. No bullshit, no scam tokens, secured by the Bitcoin network’s hash power.
Or is this how taproot assets are going to work?
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0 sats \ 2 replies \ @siggy47 OP 27 Mar
Pegging bitcoin to the USD is a non starter, I think. Even if you wanted too, how could you?
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36 sats \ 1 reply \ @022fbc9cef 27 Mar
Perpetual swaps.
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107 sats \ 0 replies \ @siggy47 OP 27 Mar
How do you keep the peg while the outside exchanges and p2p are trading at the market rate?
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36 sats \ 0 replies \ @SwapMarket 27 Mar
Stopped reading after claim denomination in USD = they want USD. Fool.
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36 sats \ 0 replies \ @purpurato 27 Mar
The single largest arbitrage in human history threat to bitcoin adoption
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36 sats \ 7 replies \ @Undisciplined 27 Mar
We should like it, and not just as Americans. We want people to have better money, don't we?
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22 sats \ 6 replies \ @siggy47 OP 27 Mar
The surveillance powers into transactions by the US would be worldwide though, no?
The spigot could also be turned on and off at a whim, no? Also blacklisted addresses, censored parties, etc?
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71 sats \ 3 replies \ @optimism 27 Mar
I think its likely that any regulation will be extremely authoritarian towards using that freeze function. After all even Sen. ComeAndTakeIt went on the confiscation path of "Coming to take it". So yeah... You won't gain much as a bitcoiner from stablecoin adoption except that as soon as (when, not if) they start using the freeze function, the bitcoin narrative will sound more attractive to more people.
Although I wish that my fellow humans would pre empt the drama and realize today that censorship resistance is a benefit, i guess it'll just have to organically grow through fafo.
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100 sats \ 2 replies \ @Undisciplined 27 Mar
It can’t be all that authoritarian, as long as there are other options available.
They want people to use it more than they care about what it’s used for, so it has to remain preferable to the other currencies in circulation.
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35 sats \ 1 reply \ @optimism 27 Mar
Agreed. However, I think there will still at some point be a smarty-pants "debanking" an entire country in a sanctions package though.
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100 sats \ 0 replies \ @Undisciplined 27 Mar
Absolutely, if it gets that far.
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36 sats \ 1 reply \ @Undisciplined 27 Mar
Ideally, people join us in Bitcoinland. Until then, dollars are better than the currencies they have access to now.
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133 sats \ 0 replies \ @siggy47 OP 27 Mar
I agree that dollars are the best option among shitty fiat. It's the form it would take. These stable coins are borderless CBDCs.
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