1/ Watching #btc volatility & thinking about current use cases, I finally appreciate why @VitalikButerin says it's important to make a StableCoin. Ppl should be able to store value w/o taking on all this currency risk.
Show this thread
-
It's not non-trivial, it's impossible and impractical. Not only do you need a third party to keep prices steady, but the whole concept of "steady" is nonsense, since all prices are relative to something else. Lock it to the dollar, and you're doomed if the dollar crashes.
If you can peg it to one currency, you can peg it to any combination of currencies/commodities/cryptos. One is hard, but going from one to a basket seems quite easy to me (as long as you're careful to avoid arbitrage attacks).
-
-
Who does the pegging? And how do they not become corrupt? That's the problem Bitcoin solved by abandoning the old dogma of gold backing or pegging. Best way to get stability is still mass adoption.
-
The network itself does the pegging. Imagine, for example, that we implement this via an ERC20 token, and an Ethereum smart contract is our "central bank" peg adjuster. It reads Ethereum oracles, and expand/contracts money supply based on Stable:USD exchange rates.
End of conversation
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.