So what you're saying is that you buy ETH for its utility of processing transactions on tokenized assets? And you get more value out of spending the ETH on gas than it cost you to purchase it?
That sure sounds like a useful product to me.
I think HN is so anti-crypto because so few people in the industry currently have your use-case.
Personally, I think what you're doing is exciting and helps put a value on the utility of paying to run these contracts.
Yes and it's also much easier to trade tokenized assets between people than bonds or other financial instruments.
Also the whole DeFi ecosystem allows you to use your tokenized assets in different ways, giving even more value to it.
I think many people have my use case, it's just that you can't really see it unless you live in a country with a very mismanaged central bank. Which in my opinion is becoming more and more common every day.
How exactly is using stablecoin to hold money different than holding your wealth in USD? Is it an access thing?
In any case, many "stablecoins" are ponzi schemes waiting to burst. I would much rather use a government backed currency to hold wealth against inflation than something like Tether.
You say that but imo having a currency that loses 50% it's value every year is worse than holding Tether. I don't trust Tether either and thats why I am holding DAI.
>having a currency that loses 50% of it's value every year is worse than holding Tether
What are you talking about? Tether (and many "stablecoins" like it, including DAI) are entirely based around the idea that they are pegged to the US dollar. If USD has inflation or deflation, so does the coin. The "50%" figure is just completely made up, and you know it - inflation right now is pretty bad, but saying USD lost 50% of its value is just completely and utterly wrong.
>you can't buy USD digitally
...again, this is just blatantly untrue on every level. You can use almost any bank and they will convert it for you. Of course, they will take a fee, but that's much preferable than having to involve yourself with cryptocurrencies backed by cryptocurrencies backed by thin air. Tether is especially egregious with this, and I assume that's why you don't trust it - but from what I'm looking at, DAI is backed by USDC and ETH. MAYBE USDC is being honest with how much money they have, maybe they aren't, and ETH has some very obvious awful problems (e.g. the insane instability).
Overall, you haven't given me literally any reason to believe that holding the flavor-of-the-month stablecoin is in any way, shape, or form better than using actual US dollars.
Please read the comment chain, I don't live in the US nor have the USD dollar as the currency of my country.
> The "50%" figure is just completely made up, and you know it - inflation right now is pretty bad, but saying USD lost 50% of its value is just completely and utterly wrong.
I am talking about the Argentine Peso not the US dollar. And this just makes my point stronger. If you think 6% (USD inflation right now) is pretty bad just imagine holding a currency with >50% inflation every year.
> ...again, this is just blatantly untrue on every level. You can use almost any bank and they will convert it for you.
What are you talking about? Not every place has a free market like in the US.
In Argentina the banks only sell you at most 200USD dollars per month and only if you meet very specific requirements. And that's what capital controls mean. The banks are not allowed to sell foreign currencies.
That sure sounds like a useful product to me.
I think HN is so anti-crypto because so few people in the industry currently have your use-case.
Personally, I think what you're doing is exciting and helps put a value on the utility of paying to run these contracts.