It’s underremarked upon that stablecoins accomplish basically all of the original design goals for Bitcoin qua a transactional mechanism (instant free value transfer anywhere), but that nobody cares about this because nobody ever cared about that part of the pitch.

“Why do people care about stablecoins then?”

A mix of “they encourage dollar-denominated liquidity in the cryptocurrency ecosystem and discourage withdrawal of the same” and “they’re good for money laundering.”
“But they make value transfer between exchanges much faster!”

This was a solved problem in traditional finance, too, mostly through the extension of credit. (It doesn’t matter how long settlement takes if there is sufficient trust to enable credit.)
The Bitcoin ecosystem is *positively allergic* to credit, so you have to call it a coin for them to accept it. And after you call it a coin they ignore everything the world has learned about credit, like risk management.
“Stablecoins aren’t credit!”

They’re pretty much exactly credit? A tether is a zero-coupon Bitfinex bond with a non-functioning call option. I

More from Patrick McKenzie

More from Tech

One of the best decisions I made during a very turbulent 2020 was to leave conventional coding behind and embrace the #nocode movement. @bubble made this a reality. Although my own journey thus far is premature, I’ve learned a lot so here’s a power thread on....


‘How I created @buildcamp sales funnel landing page in under 2hours’.

Preview here 👇

https://t.co/s9P5JodSHe

Power thread here 👇

1. Started with a vanilla bubble app ensuring that all styles and UI elements were removed. Created a new page called funnel and set the page size to 960px as this allows the page to render proportionately on both web and mobile when hitting responsive breakpoints.


2. Began dropping elements onto the page to ‘find the style’. These had to be closely aligned to our @buildcamp branding so included text, buttons and groups - nothing too heavy. Played around with a few fonts, colors and gradients and thus pinned down the following style guide.


3. Started to map out sections using groups as my ‘containers’ to hold the relevant information and imagery needed to pad out the sales pitch. At this point, they were merely blocks of color #ff6600 with reduced opacity set to 5% to ease page flair.
🙂 Hey - have you heard of @RevolutApp Business before?

🌐 Great international transfer and 🏦 foreign #exchange rates, and various tools to manage your #business.

👉 https://t.co/dkuBrYrfMq

#banking #fintech #revolut #growth #startups
1/10


One place to manage all things business
Get more from your business account with powerful tools that give you total control over your finances.

👉
https://t.co/dkuBrYrfMq
2/10


Accept payments
online at great rates
Receive card payments from around the world with low fees and next-day settlement.

👉 https://t.co/dkuBrYrfMq
3/10


Send and receive international payments, with no hidden fees
Multi-currency accounts allow you to hold, exchange, send and receive funds in 28+ currencies - always at the real (interbank) exchange rate...

👉 https://t.co/dkuBrYrfMq
4/10


Optimise spend with smart company cards
Spend in over 150 currencies at the real (interbank) exchange rate
Stay in control – issue physical and virtual cards, track spending in real-time for your entire team...

👉 https://t.co/dkuBrYrfMq
5/10

You May Also Like