Thanks for taking the time to read! I'm glad you thought it interesting.
I agree with many of your conclusions, for example value creation IS occurring in the crypto space. Your examples of decentralized exchanges for example do solve a problem and increase efficiency.
And excellent - you got the brainteaser exactly! By destroying the dollar the no-arbitrage mechanism doesn't exist anymore and there is no more upwards pressure on the stablecoin to peg it to $1.
I have some other concerns with stablecoins backed by any asset correlated with crypto since it leaves the potential for market manipulation when controlled by a central party. I wrote about that in an earlier blog post too.
I'd be happy to chat about any of this more directly. My email is [email protected]
I agree with many of your conclusions, for example value creation IS occurring in the crypto space. Your examples of decentralized exchanges for example do solve a problem and increase efficiency.
And excellent - you got the brainteaser exactly! By destroying the dollar the no-arbitrage mechanism doesn't exist anymore and there is no more upwards pressure on the stablecoin to peg it to $1.
I have some other concerns with stablecoins backed by any asset correlated with crypto since it leaves the potential for market manipulation when controlled by a central party. I wrote about that in an earlier blog post too.
I'd be happy to chat about any of this more directly. My email is [email protected]