February 1, 2023

Stablecoins - a pyramid.

A few days ago, I stumbled upon a cryptocurrency market for a miracle that does not fall along with everything cryptocurrency market.
Name him stablecoins! Actually it is anti-stable coinswho impersonate as stable. Having studied the issue of what these coins are, I realized that this is another tricky form of the financial pyramid!
It is understood that the emission of this cryptocurrencyIt is based on a real dollar, that is, you give away your cash, and in return receive coins at the price of your dollars, which in the meantime are stored in a "safe" place. Why do I think so?

Question No. 1: The simplest, if the money is in a certain organization that is not regulated by anything, then who said that it is reliable?

Question No. 2: What is the profit of the issuer of currencies if it promises exchange rate stability?
Someone in the comments suggested that this moneyYou can keep it in a bank or bonds and receive a percentage that you take as a fee! However, the question immediately arises, where are the rules for managing this money described? Where are the financial statements of the company or at least a business plan that will show that there are such expenses and potential income if you believe us and invest your money in our coin! Personally, it seems to me that mining capacities, storing the “real dollar” and all other necessary things can cost much more than the meager income that a bank deposit or a bond can provide.

Question number 3: I hope everyone knows what a cash gap, for example? Here the situation is similar, when at one moment a situation may arise that some money has not yet brought profitability, and they must be withdrawn in order to pay the currency holders! It turns out there’s nothing to pay, and you either borrow somewhere and drive yourself into a hole even more, or you don’t pay, but if you don’t pay, then you run the risk of getting a complete collapse, because on these news everyone will be selling your coin and here it is a snowball !!!
For example, in the banking sector this is regulated by the Central Bank,which sets reserve standards, that is, for a conditional 100% of your obligations, there should be 30% of the money in reserves in case of a sharp lack of liquidity! I hope the mechanism is clear!

Question No. 4: What if a banking crisis occurs and a lack of liquidity already happens in the bank itself? What synergistic effect of sales will this cause in stablecoins themselves?

And now the conclusion is: Why are these stablecoins needed at all if they have all the same minuses of fiat currency multiplied by cryptocurrency risks?
It turns out an ordinary pyramid, which is exactlyalso collapse at some point and it will happen inevitably! So far the only way in the world to create a truly stable cryptocurrency (not without differences, of course) is to create a cryptocurrency emitted by state institutions!
Well, if you invest something in crypto, thenthen the same bitcoin is better, because there, at least there is a potential opportunity to earn, and in stablecoins a potential opportunity to lose sooner or later! In the language of N. Taleb, stablecoins are very fragile, and classic cryptocurrencies have some anti-fragility!