Breaking News: Coinbase Lists My Three Favorite ERC-20 Tokens
This is getting crazy. How long did Coinbase have one currency? Then two, then three, then four. Now, coins are getting added like hotcakes.
I've written a lot about Maker/Dai and Golem:
https://steemit.com/ethereum/@edicted/maker-and-dai-still-looking-strong
https://steemit.com/maker/@edicted/maker-will-reign-supreme-above-the-other-stable-coins
https://steemit.com/news/@edicted/makerdao-doubles-debt-cap
https://steemit.com/maker/@edicted/figuring-out-makerdao
https://steemit.com/golem/@edicted/proud-owner-of-31-golem-coins
https://steemit.com/golem/@edicted/brass-golem-is-live
https://steemit.com/golem/@edicted/golem-and-friends-will-change-crypto-mining-forever
https://steemit.com/cryptocurrency/@edicted/golem-coin-gnt-graded-b
To have everything be added on Coinbase in one fell swoop with no warning is absolutely insane to me. Things are really looking up for 2019.
Dai
This is the number one ultimate chain Coinbase could have added in my opinion, and I was thinking it would take them much longer to figure this all out. Dai is a stable coin pegged to the dollar using only Ethereum as collateral. Therefore, Dai's collateral is stored directly on the blockchain, not in a bank. This is huge.
Other stable coins are using banks for collateral. Banks operate on the concept of fractional reserves. If a bank has a total of a billion dollars worth of deposits, they may only have $50 million in reserves at any given time. In the world of crypto this is wholly unacceptable, because the volatility of the sphere is so violent that a "run on the bank" could occur at any time, making the bank insolvent because it runs out of money.
This can't happen with Dai, because every Dai coin ($1) is collateralized by $3 worth of Ethereum on average. The bank of Dai can never go insolvent no matter how bad the bank-run is.
A bank can be regulated, shut down, sanctioned, sued, boycotted, and/or outright banned. The money in a bank can be frozen. Dai is immune to all the vulnerabilities that banks have. It is so much more reliable than money in a legacy system.
What was Dai missing?
The only thing that Dai was missing was liquidity. Coinbase will increase Dai liquidity by 100 fold. No longer will we have to deal with this BS:
Before now, there has always been a big gap of liquidity between buyers and sellers. A null or void zone if you will. With Dai on Coinbase I can't imagine this happening. With USD and USDC available on Coinbase Dai's volatility will drop to near zero.
The new volatility of Dai will be superior to Tether/TrueUSD/Cloud/Gemini because it's more liquid due to not being stored in a bank.
Right now there are 55 million Dai in circulation. I predict that by the end of the year, solely because of this listing, demand for Dai will exceed 1 billion. It's also important to note that if I'm right, this means $3 billion worth of Ethereum will be locked up in CDP smart contracts, completely frozen so that the 1 billion Dai is allowed to exist. Seeing as the market cap for Ethereum right now is only 10 billion, a situation like this would drastically cut off supply for Ether and spike the price.
Also, Dai loans cost interest of half a percent per year. This interest is paid in Maker and that Maker is destroyed. That much Dai in circulation would force 5 million dollars worth of Maker coins to be destroyed every year. There are only 1 million Maker coins in existence currently worth $442. It bottomed at $300 just a week ago. This listing is going to skyrocket the value of Maker and Ethereum over the next 3 years. No one was even looking at Maker before, now that it's on Coinbase that is basically free advertising.
Other variables
This opens up so many avenues for Coinbase. They can now take say $50 million worth of Ethereum and create 5 million Dai. They could then loan that Dai out on the platform, allowing users to now use Bitcoin as collateral for Dai or any other asset on the platform. Unlike slow Ethereum, Coinbase can react to market crashes 100 times faster and has the liquidity to sell off bad debt much easier than the currently implemented system of the MakerDAO. Coinbase is positioning themselves to become a proxy for Maker and loan Dai out with whatever rules they choose. Coinbase is primed to become a legitimate crypto bank in this emerging economy.
Conclusion
Not only is Dai a stable coin, it also provides a platform that allows one to give themselves a loan with smart contracts. This loan can be used to make leveraged investments or to simply spend the money anywhere else the user sees fit. In addition, Maker provides an easy way for anyone to invest in Dai stable-coin. How does one invest in Tether, Cloud, TrueUSD, Gemini, Etc? Stock in a company? Pass. I'll take the decentralized option, thanks.
This is the most exciting Coinbase listing ever. It will synergize with the entire cryptosphere. The stable-coin craze is real and Dai is poised to scoop the pot. There is no other decentralized stable coin option that removes banks from the equation. This listing will eventually connect the bank accounts of vendors and service providers in America directly to the entire Etherium network. These are exciting times, especially considering how oversold Etherum is.
While I can totally understand your faszination of dai and a decentralized, Liquid crypto Bank.. I still have a problem with the erc 20 Token and ethereum.
Ethereum is just so slow, scalability and Performance are bad jokes..
Another idea: couldnt you use the technic behind dai to fix sbd?
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ah yes i suggested that a week ago.
https://steemit.com/sbd/@edicted/sbd-is-killing-steem
Also, Etherium's scaling issues do not apply to Maker. This is why I think Ethereum's niche is big ticket transactions that require a lot of trust. As described, exchanges like coinbase can create millions of dai in a few minutes for less than $1 in fees. They can then act as a proxy and loan that debt out themselves for a profit.
May I ask in which coins you invested?
going forward i want a spread of ethereum, steem, maker, binance, bitcoin, tron, and golem. i have a tiny bit in other stuff like digibyte, monero, dragon, deepbrain, dether, dent, electronium, genesis vision, byteball, etc. but not much.
for the most part im only going to invest in coins i use or want to use. the more i use it the more ill buy. that puts steem pretty high up on the list, but i think etherium and bitcoin are the safest bet. Binance also has a pretty amazing track record. The highest risk/reward is Golem imo. if they pull off secure distributed apps it will be huge and it has zero inflation.
Hmm.. I'm so unsure about eth.. and I really don't understand why it's worth so much..
There are many cool ideas and tokens on eth, but ethereum with its poor performance won't be able to really handle that? https://bitshares.org/ the graphic on the right side is already on a bad spot..^^
why maker? to buy/sell? (hodling a stablecoin does not make so much sense)
is trx like a more modern eth?
have no clue about the others..
Probably going to invest in Btc + Steem + XRP + (siacoin/internxt/shader/filecoin? not sure) + trx? + cardano?
what's so special about golem? your description sounds a bit like steem tbh^^
As long as you have a nice spread you'll probably do just fine. Everything is connected. This is cooperative capitalism.
The slowness of Ethereum translates to a greater amount of decentralization and therefore higher trust. They have the most developers (250,000). They have the best track record because they've been around the longest. Big businesses aren't going to take a risk on more exciting experimental chains unless they have to.
This creates a situation where I believe Ethereum will become the Mecca of applications that require more trust and can afford to be a bit slower. Ethereum is going to turn into a platform where the super-rich are buying houses and Lambos. A single Ethereum is going to be worth a stupid amount of money in ten years. There are only 100,000,000 and many of those are going to be hoarded because of proof-of-stake and the sheer value of the network.
In addition, if you look at the scaling solutions for for Ethereum: POS, Plasma, and Sharding might make it x1000+ faster.
Golem has a team of hyper-intelligent network programmers. I hope they don't go broke. They are trying to connect all the computers on the network into a super computer that can be bought and sold with GNT.
As soon as someone writes a script that mines other crypto currencies with golem this will give it a much higher base value.
However, imagine what else it will be able to do... it's a super computer that anyone can buy, and you can earn money by "mining" but that "mining" is actually accomplishing a real goal. Any app that is programmed to use multiple cores will likely be able to use Golem to get the job done a million times faster.
They have hf coming up, may be it will solve some of scalling problems.
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Hf? When?
https://dailyhodl.com/2018/12/08/ethereum-developers-agree-on-launch-date-for-major-constantinople-upgrade/
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When is it going to show up on Coinbase? I just looked but couldn’t find it. Excellent news though, you’ve been a fanboi of these for a while lol
It's there, they just haven't started trading yet... Also, you should never use Coinbase. It has higher fees and less coin listings. All of this stuff is on Coinbase Pro (previously GDAX). Thanks for reminding me.
https://pro.coinbase.com/trade/DAI-USDC
I’ll have to try it, I just get skeptical when I put my card info on something, don’t want it to get stolen.
I note this is great news, and potentially highly profitable, for Goldman Sachs, a substantial possessor of Coinbase ownership.
Given the nature of the 'Vampire Squid', I'm not convinced this is good news for a successful cryptocurrency revolution.
What do you think of Goldman Sachs having substantial interest in Coinbase?
Thanks!
Allowing the corporate elite to wet their beak on this action is exactly the kind of bootstrap that will break the chains of slavery even faster.
Lines are being drawn, patents are being levied, political action committees are being formed. The law is being bent in our favor. They are creating the infrastructure required for this revolution to succeed basically for free. We aren't paying them any inflation. They are still leeching off the old system, not us.
We've forged a tenuous alliance with questionable sources that we eventually want to destroy, but the enemy of my enemy is my friend. We can use these guys to our advantage to eliminate central banking. Once that happens 20 or 30 years down the road we can fork off and eliminate all middle men. Crypto is all about disintermediation. The middle-men will be no more.
I appreciate the forthright reply.
Honestly, nothing could be further from the truth. Such friendships are little more than baring your back to the blade.
In 1911 there were a thousand princes in Russia. In 1921, there were none.
Be well.