RE: Do you know what a stable currency is? Come on, I'll tell you! by Karupanociten
I just bumped into one of your older posts - one which attracted my attention. Hopefully you still will read this comment :)
It's very true, that lack of certainty is one of the main reason why investors and business owners are not willing to take much risks and often are putting their investments / company exansion at pause. I wish more of our politicians would understand it.
seeing how crypto goes from being worth $ 0.00001 to $ 10 in a month is something very appetizing
Based on my experience, those cryptos which are making such a huge gains are the ones with pretty much no volume. Which means, that those who would like to take their profits may end up not being able to sell their tokens. And in panic they will drop price to super low levels. After all - nothing scares more than seeing that there are no buying orders.
Thanks for your great introductions to topic of stable coins. I must admit, that idea behind stable coins seem to be simple and honest. However, the fact that some stablecoins (starting with letter T) is avoiding any sort of public audit is a huge concern to me.
In theory, stable coins are supposed to have backing 1 to 1 with usd. But I hardly doubt that any of them do have such a backing.
I can easily imagine scenario similar to "bank runs" in the past. It may be very painful moment.
Interesting read. Upvoted already :)
Cheers, Piotr
Greetings my dear friend Piotr, ¡grateful that you take a tour of my blog!
ja ja ja, ¡don't worry about that!, I highly value the comments you make to my posts, so I not only read them completely, but I also reply to each one of them.
This example I put it because basically, it is what many of the blockchain's world think, that it is only speculative values, of a "bubble" that must be exploited before it explodes.
But I share your opinion, as I get to know more about this cryptographic world, the more coincidences I find with the real world, the investments that offer such high-profit margins are often not solid projects, but a mere speculative game (like the currency of the puppy ;) ).
On the other hand, I also question a lot of the guarantees offered by some of the promoters of some "stablecoins", this is not good for the system, because as you say, it is very similar to the practices of some banks that I wish better not to comment. Hence, many of these projects systematically reject the realization of any serious audit, thus sending negative signals to investors who trust in said project.
Over time we will likely see blockchain projects dedicated solely and exclusively to conducting audits, fraud detection, and project certification, it would be a great step!