[bb88]

I can't trust stable coins.

I can't trust the price of BTC to drop to $0 when speculators panic.

I can't trust that my BTC will be accepted if it was once tied to a money laundering (mixer) address.

I can't trust that I will not be rug pulled on any new coin unless I read the fine grained software contract, first.

I can't trust a software contract from being hacked unless I can hire a software contract expert to peruse it, and hope he's ethical, and won't exploit any holes in the contract for his own gain.

[...]

[everfree]

> I can't trust stable coins.

Why not?

[tablespoon]

IIRC, some widespread and notable ones have consistently failed to prove they're backed by the reserves they claim to have.

[everfree]

That's true, but it's silly to measure the viability of a whole class of financial instrument by its weakest and shadiest actor (Tether).

There are plenty of reputable stablecoins out there that prove their reserves either continuously on-chain or through regular financial audits.

[bb88]

>... but it's silly to measure the viability of a whole class of financial instrument by it's weakest and shadiest actor.

Tether is the weakest actor? What reality are you living in? It has 90% of all stable coin trading volume.

I think it's silly to make arguments which are falsified by a simple google query.

https://coinmarketcap.com/view/stablecoin/

[everfree]

You're conflating popularity into my argument.

Tether is one of the weakest stablecoins in terms of regulatory compliance and general community trust.

In other words, most arguments I hear against stablecoins apply narrowly and specifically to Tether, yet people tend to use those valid arguments against Tether to straw-man the entire asset class. Popularity and volume have nothing to do with that.

[bb88]

I would say that if 90% of stable coin transactions are through tether then they have the general trust of the community. It's as plain as day, and you seek to dismiss it as a "side show" when it's really the main act.

Pro crypto arguments these days have come down to basically "You're not allowed to make that argument. It's early days. There are no good critics..." and now "you can't conflate my argument."

[Forgeties79]

Every time I look under the hood of tether I shudder a bit.

[bb88]

"Reputational Risk" is a term bandied about in the banking industry when it comes to holding people's money.

While USDC does indeed look better, the management failure of holding corporate bonds in lieu of treasuries and dollars would have triggered an audit in a bank, and would have been big news.

https://www.bloomberg.com/news/features/2021-10-07/crypto-my...

https://markets.businessinsider.com/news/currencies/coinbase...