[nailk]

> the upside can be had by holding dollars

Unless your bank kicks you out by some reason (incompetent compliance). Unless foreign bank refuses your transaction because the bank doesn’t like the color of your passport. Unless somehow banking system wants to cut extra from your transaction (2.5-4% for transaction) because of double currency conversion you didn’t ask for, because you didn’t specify correct correspondent bank and your bank didn’t tell you about that.

All that happened.

[onlyrealcuzzo]

> Unless your bank kicks you out by some reason (incompetent compliance). Unless foreign bank refuses your transaction because the bank doesn’t like the color of your passport. Unless somehow banking system wants to cut extra from your transaction (2.5-4% for transaction) because of double currency conversion you didn’t ask for, because you didn’t specify correct correspondent bank and your bank didn’t tell you about that.

These are all problems invented by Crypto bulls to build a narrative for why Crypto is widely useful.

There are a handful of small, very poor countries where Crypto might have been better than holding local currency. But you also had to be poor in those poor countries for it to make sense for you to buy Crypto instead of hard assets like land or housing - if you were merely interested in bypassing monetary devaluation - and not interested in EXTEMELY risky speculation to get absurd returns.

The total money for people this might even have made a little bit of sense for is maybe $1Bn. Considering Crypto had close to a $3T market cap at some point - this is not a talking point. It's noise.

The real story - and the only story - is that Crypto is and always has been speculation.

[pjc50]

> These are all problems invented by Crypto bulls to build a narrative for why Crypto is widely useful.

These are real things that have happened, although they're not very widespread. The question is whether using a risky system with no safety net is better than risking this: https://www.telegraph.co.uk/personal-banking/current-account...

[Danidada]

I disagree. As someone from Argentina which has a high percentage of crypto owners I can say poor people in poor countries aren't literate enough or don't have the resources (ie: liquidity, bank account) to get cryptos. It's more of a middle class thing here. Real estate isn't cheap in the big cities if you take into consideration the average salary and barely any financial aid to buy property. Besides, being a landlord isn't profitable enough given the initial investment because rental prices are heavily regulated. Also not good for reselling because price have been going down in the last years and it looks like it will keep going like that. Stocks options are heavily limited and also (obviously) regulated. A lot of people here are afraid to invest in stocks here anyway. with an estimated inflation rate of 60% people save money by buying dollar cash, crypto and classic bank instruments (fund investments and fixed term investments)

[onlyrealcuzzo]

IIUC, it's quite easy in Argentina to convert pesos to dollars and store them in an Argentine bank with a US correspondent bank - ditto for Euros and Yen.

There are many downsides to Tether. Why is it worth the risk in comparison?

Additionally, there's simply not enough money in Tether compared to the $80B to talk about. It's a distraction.

[Danidada]

Again, it's a matter of resources. Not everyone can travel to US and have the money to open a bank account there. Anyway to "easily" convert from pesos to US dollars (which you have to use some financial instruments which aren't trivial for the average citizen) you need to justify all your earnings which not everyone can do because people try to avoid taxes as much as possible.

For instance, most devs I know that work remote jobs for companies abroad, they ask for them to pay in crypto because if you try to get paid in the legal way you get 50% less off the bat in the forceful conversion from usd to pesos and then you get an additional 20-30% less due to taxes

[onlyrealcuzzo]

It sounds like it would be worth it to get a US bank account and be paid in USD at that point - assuming developers are making $50k+ USD per year. Virtually all non-small employers would prefer that as well.

[nailk]

> These are all problems invented by Crypto bulls to build a narrative for why Crypto is widely useful.

These problems happened to me and still happening. Swift transactions in USD from US to UAE are getting double converted (at cost of 2.5-4% of the total amount) and it’s very difficult to get meaningful answer from the bank support about what’s happening

[onlyrealcuzzo]

Why can't you use Wise to transfer money from USD to UAE?

[ulzeraj]

Nothing you wrote makes any sense. We are talking about stable coins. Where does speculations fits here? Also could you make an argument without making accusations?

[onlyrealcuzzo]

1. Stable coins make no sense for anyone outside of a handful of small, poor countries.

2. Stable coins make no sense for anyone who has meaningful wealth even in those countries because they have other, better options available.

3. The amount of money in Stable coins is >$100Bn - this is far more than what would go in to resolve any of these problems. Mentioning these problems is noise / a distraction.

4. The primary purpose of stable coins is for people to get in and out of / time trades in cryptocurrency (speculation).

Do you honestly believe people collectively parked >$80Bn in a shady company using it purely as a bank account - because that was really their best option? If not - then these talking points aren't really worth talking about. My whole point.

[hypertele-Xii]

The "stable" part of the -coin is all marketing. It's true while enough people believe it's true... and if at any point enough people disbelieve it, it'll be everything but.

[ulzeraj]

You are moving the target. I've asked how stable coins pegged to the dollar are considered speculative assets.

[mannykannot]

No-one in this thread has claimed that stable coins are themselves speculative assets.