[mort96]

And which are trivial to convert back and forth between real money and cryptocurrency? And hold their value with sufficient stability that you can convert USD into the currency, make a transaction, wait a few weeks, make a transaction the other direction and then convert back into USD, with roughly no loss in value?

[sowbug]

For this use case, that's a virtuous proof-of-work requirement.

[rvz]

Very tough question. Stablecoins?

[mort96]

Didn't people realize that those automated pegging algorithms don't really work after the last round of stablecoin collapses

[fidelramos]

At least DAI is holding well. It existed before LUNA and it continues to work today.

[rvz]

Except not all stablecoins are the same.

[mort96]

They essentially are to me, because I don't know how to differentiate them. Before the collapse, I would not have been able to look at the ones which collapsed and the ones which didn't and predict the outcome.

[rvz]

USDC operates as a fiat-backed stablecoin and is fundamentally different [0] to an algorithmic stablecoin such as UST which was the one that collapsed in 2022.

[0] https://www.usdc.com/learn/fiat-backed-vs-algorithmic-stable...

[mort96]

Forgive me but I don't find this very convincing. Crypto shills were saying the same things about UST before its collapse. The technical details differed, but the arrogant tone and firm insistence that nothing bad could possibly happen was the same.