Thread - Nostr Hypermedia

Great episode! Thank you. Jeff, what I hear you say is that you’re skeptical about stablecoins. I suspect you’re referring to Tether on taproot-assets as that reinforces the system by increasing demand for US treasuries? What are your thoughts on DLC based stablecoins for Fedimint/Cashu? Aren’t emerging markets going to demand these until we’ve moved the majority of the 900T to a deflationary bitcoin standard where prices can fall in a less volatile way? I know you and I can use bitcoin on Lightning to pay for things now. But I struggle to see the majority of humanity adopt bitcoin as a MoE until USD/EUR inflation is in the double or tripple digits i.e. higher than bitcoin’s volatility.

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Replies (2)

Sourcenode sourcenode@nostrplebs.com 1 year ago

I would like to better understand this. I've heard a number of people say stablecoins can help prop up the dollar during the transition by continuing to purchase treasuries, but I am having a really hard time gaming that out mentally or what you wrote above for that matter. As with most things in bitcoin I find that I can't grasp the initial explanation fully, but as it seeps into the scene and I hear it explained several different ways it'll click.

Ben Arc benarc@nostr.com 1 year ago

Privileged take. People need stability, literally the core function of sound money. Most people just can't afford wild price swings, that's it, nothing to do with a lack of understanding game theory. Good MoE is stable, bitcoin is not stable. Build stablecoins on bitcoin that can easily be swapped in/out, and hope one day enough liquidity and commodity use cases exist that bitcoin becomes stable and can be used raw as MoE.