BITCOIN

HansOndabush

USDC doesn't get you much that you don't already have with a US dollar except some unwanted counterparty risk. It won't protect you from inflation. I don't see what is so 'savvy' about using it apart from it potentially not being as bad as Tether?

Scottex99

HansOndabush said:

USDC doesn't get you much that you don't already have with a US dollar except some unwanted counterparty risk. It won't protect you from inflation. I don't see what is so 'savvy' about using it apart from it potentially not being as bad as Tether?

Of course it doesn't but if you actually traded you'd know how much of a ballache it would be to off ramp your positions into fiat and potentially into your bank and then reload it all back again when you want to buy. You're confusing what the coins are actually used for here.

Instead you just "tether up"/trade into stables and either hold on that exchange where you can instantly trade back in when you want or stick it in cold storage.

Plus if I'm in Barbados and you're in Tokyo, I can send you 1m USDT in 3 minutes for the gas price of ETH. Try doing that route with normal banking.

PLUS you get 6-10% APY in a lot of places whilst you hold

Malthusian

Scottex99 said:

PLUS you get 6-10% APY in a lot of places whilst you hold

Ah, the bro in New York with his magic money printing machine again.

Noobs: "Why would I hold USDC instead of USD"

Bros: "Because you can get 6-10% annual interest thanks to a guy in New York who has a magic money machine that generates guaranteed yields of 6-10% in USD after all his costs. So you can trust an obscure LLC when they say that they have enough real USDs to allow everyone to cash out their USDC (although nobody is to know how many that is). Even though this requires a return of 6-10% to be generated on fiat dollars to allow the USD backing USDC to keep pace with the returns being paid on USDC."

Noobs: "If he's got a magic money machine that generates a guaranteed 6-10% on real USD, allowing him to back a promise to pay out 1 USD for every USDC in circulation to people who are getting 6-10% yields on USDC, where are the profits coming from, and why is he faffing about with crypto instead of taking investment in USD and becoming a billionaire?"

Bros: "Do your own research bro, I'm not going to Google it for you."

Noobs: "..."

Bros: "Wait, come back, why do you like being poor so much?"

Plus if I'm in Barbados and you're in Tokyo, I can send you 1m USDT in 3 minutes for the gas price of ETH.

Assuming the bro in Tokyo actually wants $1 million worth of crypto backed by $29,000 of actual dollars.

Perfectly fine if it's two bros trading points between each other, but if I've got a house in Osaka worth $1 million I want to sell I'll probably stick with the guy who's offering $1 million of actual dollars.

HansOndabush

Ha ha Malthusian, very good.
Yeah this 6 to 10% interest sounds dodgy. For any normal ininvestment, those returns would certainly be in the scam category.

onthebench

thegentleway said:

Atlas234 said:

Bitcoin is proof of work, the others are hardly obscure, cardano, polkadot and many many other are pos, ethereum is practically unusable under its current pow iteration, with the huge fees, they are in the middle of transitioning to etgereum 2.0 which will be pos

It is obscure AF. Whilst most people have heard of bitcoin, nobody has heard of Ada.

Plenty of people have heard of ADA. The Independent ran an article on it which was a top story on Apple News just a week or so ago.

Scottex99

Malthusian said:

Scottex99 said:

PLUS you get 6-10% APY in a lot of places whilst you hold

Ah, the bro in New York with his magic money printing machine again.

Noobs: "Why would I hold USDC instead of USD"

Bros: "Because you can get 6-10% annual interest thanks to a guy in New York who has a magic money machine that generates guaranteed yields of 6-10% in USD after all his costs. So you can trust an obscure LLC when they say that they have enough real USDs to allow everyone to cash out their USDC (although nobody is to know how many that is). Even though this requires a return of 6-10% to be generated on fiat dollars to allow the USD backing USDC to keep pace with the returns being paid on USDC."

Noobs: "If he's got a magic money machine that generates a guaranteed 6-10% on real USD, allowing him to back a promise to pay out 1 USD for every USDC in circulation to people who are getting 6-10% yields on USDC, where are the profits coming from, and why is he faffing about with crypto instead of taking investment in USD and becoming a billionaire?"

Bros: "Do your own research bro, I'm not going to Google it for you."

Noobs: "..."

Bros: "Wait, come back, why do you like being poor so much?"

Plus if I'm in Barbados and you're in Tokyo, I can send you 1m USDT in 3 minutes for the gas price of ETH.

Assuming the bro in Tokyo actually wants $1 million worth of crypto backed by $29,000 of actual dollars.

Perfectly fine if it's two bros trading points between each other, but if I've got a house in Osaka worth $1 million I want to sell I'll probably stick with the guy who's offering $1 million of actual dollars.

Nice try but nah. The 6-10% doesn't get paid by Tether (BitFinex) or Circle. 

On the house, you received 1m in stables, you off ramp it to your desired fiat currency via an exchange or an OTC desk like mine and get it paid to your bank account. We trade at least a mil tether every day and we trade it against GBP/EUR/USD at a rate equivalent to 1 dollar. Could it lose its peg? Possibly. Will it? Unlikely.

Malthusian

Scottex99 said:

Nice try but nah. The 6-10% doesn't get paid by Tether (BitFinex) or Circle.

Irrelevant. If Bro A is promising to guarantee 6-10% interest on digitial dollars and Bro B is promising to pay out 1 fiat dollar for every 1 digital dollar, then at least one of those guarantees is built on thin air.

If neither of them actually has a magic money machine that generates returns of 6-10%pa on real dollars, then when investors try to withdraw their money, one of two things can happen: 1) it turns out that Bro A doesn't have enough digital dollars to pay everyone or 2) Bro A hands everyone their due amount in digitial dollars created out of thin air, but when they try to turn it back into fiat, it turns out that Bro B doesn't have enough real dollars to pay everyone. Or a combination of the two.

If the case for buying USDC instead of USD is "you can use it to invest in somebody's shonky investment scheme paying 6-10%pa" it's not much of an incentive, as there are plenty of shonky investment schemes offering 6-10%pa that accept USD. If you're claiming it's not shonky the onus is on you to explain what the magic money machine does to generate returns of 6-10%pa plus costs on real dollars. "Google it" and "Transaction fees [shuffling punters' money around]" are not explanations of how to generate consistent returns of 6-10%pa plus costs on real dollars.

On the house, you received 1m in stables, you off ramp it to your desired fiat currency via an exchange or an OTC desk like mine and get it paid to your bank account.

Providing you can find someone who is willing to hand you 1 million real dollars for 1 million in digital dollars and overlook the fact that 1) there are allegedly only $29,000 of real dollars backing that $1 million in digital dollars 2) Tether claims that counting up a load of corporate bank accounts to check how many real dollars are in them is too scary for the likes of KPMG and PWC to handle.

Scottex99

Malthusian said:

On the house, you received 1m in stables, you off ramp it to your desired fiat currency via an exchange or an OTC desk like mine and get it paid to your bank account.

Providing you can find someone who is willing to hand you 1 million real dollars for 1 million in digital dollars and overlook the fact that 1) there are allegedly only $29,000 of real dollars backing that $1 million in digital dollars 2) Tether claims that counting up a load of corporate bank accounts to check how many real dollars are in them is too scary for the likes of KPMG and PWC to handle.

Wait until you see the LP pools on Uni/Sushi/PS that pay 250-300% or more. 

I don't need to find them, I have 20 people/firms asking me to do it for them everyday and paying decent spreads for the pleasure. Some banks are anti, some are pro, we've got 9 bank accounts right now for the firm and put millions through them every day, all txns related to crypto trading

HansOndabush

Scottex99 said:

Malthusian said:

On the house, you received 1m in stables, you off ramp it to your desired fiat currency via an exchange or an OTC desk like mine and get it paid to your bank account.

Providing you can find someone who is willing to hand you 1 million real dollars for 1 million in digital dollars and overlook the fact that 1) there are allegedly only $29,000 of real dollars backing that $1 million in digital dollars 2) Tether claims that counting up a load of corporate bank accounts to check how many real dollars are in them is too scary for the likes of KPMG and PWC to handle.

Wait until you see the LP pools on Uni/Sushi/PS that pay 250-300% or more. 

I don't need to find them, I have 20 people/firms asking me to do it for them everyday and paying decent spreads for the pleasure. Some banks are anti, some are pro, we've got 9 bank accounts right now for the firm and put millions through them every day, all txns related to crypto trading

Rolleyes. They say there is one born every minute......

mooneysaver

Scott hasn't shared his pictures yet but there are some videos of the Miami conference: 

https://twitter.com/desperateSia/status/1401251494314360834?s=20

https://twitter.com/Fredilly/status/1400993824579588096