If Tether Crypto Is A Scam, The DAI Token Is An Alternative
Subscribe to my DTube channel and earn cryptocurrency rewards for your best comments at:
and https://steemit.com/@marketingmonk
Click on a video and then click 'subscribe'.
▶️ DTube
▶️ IPFS
Click on a video and then click 'subscribe'.
On today's show:
Today I am with Rune Christensen who is the founder of https://makerdao.com and the price stable Dai token.
With all the uncertainty around the sustainability of the Tether project but at the same time tons of people using it, I thought it was time to introduce some alternatives into the conversation.
We reached out to Rune, which is rare, normally guests come to us, and he was kind enough to join me for a chat.
▶️ DTube
▶️ IPFS
I loved the interview. Thanks for pressing the dev to go into detail about how the currency will be stabilized and collateralized. It's facinating to see that it is collateralized in stuff beyond crypto currencies too. I feel much more confident in the DAI token than USDT.
I'm wondering if that going forward (like in 10 years), will there be a need for a stablecoin. I rememberr an old Andreas Antonopolous talk where he talked about a coin that won't be used as a currency, but rather would be a replacement for the function of how FIAT tells us the value of a coin. In that scenario, will a stablecoin even be relevant?
How can dai avoid falling victim to the same issues as tether? Tether initially passed an audit but as it grew it may have(nothing is proven yet) fell victim to greed and laziness. Without a reputable backer(bank, government, Bill Gates, etc.) how can any crypto prove a 1:1 link with a fiat currency.
Since I have no faith in the US dollar, I originally was not interested in this. Why stabilize something to the dollar when the dollar is so inflationary? I buy something today, a month or so later it will cost more, and each few months later, the cost is higher again. I compared things I regularly buy and a year or two earlier they were significantly lower in price. So the DAI is stable because it is matched to the dollar? No. It becomes just as unstable as the dollar. Perhaps the DAI will not be going up and then down and back again, but basically it means it will continue to go downward in value for goods.
That being said, the concept is good for the stability for managing a retail business and the security, infrastructure, and principles behind it seem very sound. Sure beats the banks we have today and avoids the centralization and introduces accountability.
One big question: If the dollar crashes, what will the DAI then be "against". All the various kinds of collateral is excellent, but the whole theme is to be tied to the dollar. If it crashes, why would we even want it? Needs a backup plan for that situation.
DAI is not something that is meant to be held as an investment to earn money in my opinion. It is a place to park money when you need stability short term. The backers then take your crypto currency risk. If ETH goes up you lose, if ETH goes down you gain. Vice versa for backers. Until something can replace USD as the world currency it will continue to be the preferred option for pegging to. Currently crypto can easily swing 20%+ in a day. As of yet we are not even remotely close to seeing that happen to USD. Once DAI is on a major exchange it will be a very usefully tool to hold between trades just like people love to use USDT even though they should have very little reason to trust Tethers value.
Really the ideal peg would be to the average cost of a unit of labour. In the end that is all currency is, a way to trade one's labour for goods.
I can't wrap my head around how they will create a CDP around non crypto assets like he mentioned, gold, silver, stocks? I know there are "gold backed" crytpos but I have the same trust issues with them as I do with Tether. Even if I was comfortable using iShares to represent these assets, can a smart contract verify these holdings?
i subscribe your d tube it is not for reward its your right you really doing good job hard work always come back in the form of reward.good luck
Awesome interview, you asked the best questions. Is it possible that this token will be available on the Exodus wallet one day? Thanks for info!
Thanks for this great post 👏⚡
we need future bitcoin market price added again, thank you for giving information
I saw that Dai token before as an alternative to tether.. but your video is always more informative for me. I enjoy your detailed explained teaching 👍🏼
I think people don't really understand what Tether is.
Tether is the solution for most exchanges to bypass regulations (since they trade tokens for tokens, not involving fiat currencies).
Also, overall tether volume in all trading platforms is below 5% of total crypto worth. Nothing to worry about: people only use tether to avoid tax pays but not a single one trust in them since tether IS NOT changeable for USD.