I literally just watched this the other night, good lesson on history and empire. Very interesting information on the world reserve currency and what we can learn from the past. Makes me wonder if usd is devalued then so would usd backed stablecoins. Gold backed stablecoins are interesting and if BTC becomes less volatile then perhaps even BTC backed stablecoins.
You are viewing a single comment's thread from:
It does have some good information to think about. Good point about stable-coins. At least with stable-coins like HBD it is possible to earn 12% APR to offset devaluation due to inflation.
Maybe sovereign currencies don't have to be backed with BTC, 1 for 1. For example, they don't have to have one MadeUpCurrency backed by one satoshi. Instead, they can have reserves in BTC and prove what they have through public ledger and the value of the currency they create/print will be determined by the market. This way there can be a fair competition among sovereign currencies.
BTC will never be less volatile.
It's quite clear to me that DEFI will create a superior coin.
One that actually has elasticity and exponentially larger liquidity pools.
One with much better tools than central banks.
Directly owned by the community itself.
This model will be copied a thousand times over.
Bitcoin will stand in the background as a beacon of security.
Posted Using LeoFinance Beta
I was thinking over a longer time span when BTC might be more stable. You're right about DEFI creating a superior coin as specific features can be engineered. I agree that algorithmic-based stablecoins are much more efficient.
I was more wondering about the stability of USD backed stablecoins (collateralized off-chain). In terms of these stablecoins being backed by another currency, what sort of hard currency would you suggest? A precious metal? A basket of tokens/currencies?
stable prices are a lie by design.
Central banks 2 goals = max employment, stable prices.
What does it mean? By nature, it isn't.