Discussion about holding stablecoin

If you declared your transactions there would be tax. What you are suggesting is that because there is no central authority on a DEX you can perform transactions without incurring tax. Which is naive because at the point you cash into FIAT, you need to be able to explain your wealth.
If you can live off bitcoin, I suppose you could avoid tax, but thats going to be incredibly difficult until your local supermarkets accept crypto directly as payment.

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I disagree sooner or later you do not need fiat you can buy goods with safecoins on the safenetwork. If it is mass adopted it will be hard to punish everyone who does not pay income tax and so on because it will never touch the real world :smiley:

I think the safenetwork will turn our financial system upside down…

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Thats very short sighted, without tax, there would be no NHS here in the UK. Who wants to live in a world where you have a car accident, and nobody comes to your aid. Those safecoins are now worthless to you.

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I totally agree with you. I didn’t eveluat it, I determined it.

little tax is good for economy. no? :slight_smile: debatable. anyway, I would say decentralized stable coin will be transparent about counter party risk. Counter party risk is serious issue, cough! Deutsche bank!

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You could pay someone to do that, eg. through an insurance.

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What kind of madness is this? The very definition of a stablecoin is that it’s backed by somebody who’s willing to 1:1 exchange it to fiat. If that entity fails, your stablecoin is done.

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sure. just as the invisible hand regulates everything by itself and rich people are forced by the system to share their capital with the poorest.

If you’re interested in stablecoins, how they work and what the risks are I did a write up earlier this year you may like: http://oscarpacey.com/stablecoins/

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just much easier to go back and forth, on a purely technical level. No wire fees, etc. Would be the fastest way to transact if you are planning for crypto to go from say $4k - $1/$2k range.

Of course if you have an easy way to go back and forth into fiat that’s ideal, but that’s not the reality for everyone.

Just anything to avoid holding too much crazy BTC these days. It’s so horrible :cry:

On a philosophical level I hold fiat backed stablecoins in low regard. Another abstraction on debt based money tied into a growth and debt issuance cycle that is just insane.

Putting that aside, the ones that are backed 1:1 by fiat funds held in a treasury bank account and redeemable for the underlying asset (fiat) will serve an immediate market need, more so in crypto exchange contexts. Paying for crypto at a broker or exchange with fiat from a bank account has slow (perceived) turn around time. In Australia, even with the “New Payments Platform” there are delays. People want to take action on price movements and arbitrage, fast. Even more so for programmatic/algorithmic trading. Stablecoins will offer crypto/fiat pairings and trading between with much lower friction.

If you are wanting to hold some of your capital in a token that is “stable” (relative to and collateralised with fiat), and quickly trade it for other cryptoassets on centralised or decentralised exchanges it does make sense.

I’ve led some of the work for an AUD backed stablecoin at btrade.io which is planned for release early next year. Some of the benefits are there really because the fiat banking infrastructure is just so slow and archaic.

There is definitely demand. Be that from bit traders and remittance providers all the way through to dAPP projects and neo banks. Challenges are there also. Traditional banking relationships, slower moving API based banking, privacy issues, key management, financial censorship and surveillance, and then transparency to the public on verifiable treasury audits just to reference a few. This is just the fiat-collateralised stablecoins with funds held in a treasury bank account. Then there is the whole other world of crypto-collateralised and non-collateralised stablecoins that is interesting to watch evolve as well.

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it’s in the interests of the rich to support the poor, as the poor could destabilize the system (there’s nothing to loose for them) and thus threaten the wealth of the rich.

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It’s funny that the collective value in this dollar dream (stablecoins) is over $2B, but what happens to this experiment/inception, when the dollar fails? :upside_down_face: If that’s something that unimaginable… :rofl:

Luckily for us Maidsafe still got a minimum of 1M gold ounces in publicId’s that they can sell, when all goes…

:stuck_out_tongue:

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1.) what about USDVault? 1:1 backed by gold.

2.) also fully collateralized, and transparently audited as per -

1.) https://www.businesswire.com/news/home/20180731005113/en/New-Gold-BackedRedeemable-USD-Pegged-Stablecoin-Aims-Ease-Institutional

2.) https://cointelegraph.com/news/important-aspects-of-stablecoins-the-difference-between-pegging-collateralization-and-redeemability

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If we had not had fiat, where would all of the monies have come from to allow people to push up the price of cryptos to make us fat profits.

I used to hate bankers / fiat.
But where would the world be now if we hadnt had them.
Its a broken system i hope we can move away from, but imo was a necessary evil.
Stablecoins have their place, but are only as good as the fiat / gold they represent.

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It is one thing to point out the problems with an existing system.
But it wouldn’t be wise to completely switch immediately to a (radical) different system that hasn’t proven itself enough in reality.

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When I think about gold backed stablecoin it does not do much for me, gold is a quite volatile asset from what I know and that would mean that you need to move trucks of gold in and out the facility to keep it backed 1:1? Do I make the wrong conclusion here, as it don’t excit me much I’dont have the energy for any deeper thought about it, I rather see stablecoins backed by relative stable assets as USD or Euro.

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Because imo.
Without the banks using fractional reserve to create money from nothing, a hell of a lot of the industry that is present today simply wouldnt be here, alot of the technological advancements that have been made wouldnt have been made, it would be a less advanced world.

I never said my goal was to make profits, but they make my life less work and more play, and i like that.

Utopia, dystopia, its all a matter of perspective.

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The USD is not pegged to gold so that can’t be a stablecoin. Either way, “no bank failure risk” is simply untrue unless you argue it isn’t really a bank but that’s just splitting hair because the type of risk stablecoin holders face is quite the same.

if i’m understanding your reply correctly:
right, so why would you want a stablecoin pegged to the USD, when you can have one pegged to gold. it may be a bit more volatile short term, but it holds its value over long term and, redeemable anywhere.
edit:
I don’t remember who said this but, it was a notable, high ranking financial individual:

“all fiat currencies eventually will return to a value of zero.”

Granted, we probably wont see that zeroing out of the dollar in our lifetimes, but it’s a testament to the value of gold.

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