Stablecoins are just not feasible in a decentralized way: The Impossible Trinity https://en.m.wikipedia.org/wiki/Impossible_trinity?wprov=sfla1 …
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Replying to @alvarogracia @cburniske
Some stablecoins don't have a sovereign monetary policy, so the impossible trinity isn't broken.
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Replying to @alvarogracia @cburniske
They attempt to create game-theoretic incentives so that even a minority of speculators can make money by keeping the peg at $1.00
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Replying to @MustStopMurad @cburniske
Wont be so stable... They are just controling money supply but not velocity of money M x V = P x T
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Replying to @alvarogracia @cburniske
You only need to control 1 variable. Velocity of money is uncontrollable, that’s central planning and it never works.
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Replying to @MustStopMurad @cburniske
So value of this stablecoin wont be so stable, and it wont be so decentralized as oracles will be needed to provide exogenous price data, hence vulnerable. I just dont see it and dont think there will be incentives to store value in a stablecoin having deflationary alternatives
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Replying to @alvarogracia @cburniske
Bitcoin is unusable as MoE/UoA until it is 10T, and even then, we don’t know if it will be stable enough to underwrite long term contracts with (Gold has 15% annual vol)
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For oracles there are ways to make them decentralized, see Schelling schemes.
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I see a world with BTC at 10T, Stablecoin winner at 3T, Privacy coin winner at 2T, world computer winner at 1T. etc. :)
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