Because when the whole house of tulips inevitably comes crashing down, the stable coins are gonna be worthless too.
So people will take 99.99999999% losses and not 60-80%.
Real dollars go in.... IOUs out of a bull's behind come out.
So people will take 99.99999999% losses and not 60-80%.
Real dollars go in.... IOUs out of a bull's behind come out.
"USDC IS NOT LEGAL TENDER. USDC IS A DIGITAL CURRENCY AND COINBASE HAS NO RIGHT TO USE ANY USDC YOU HOLD ON COINBASE. COINBASE IS NOT A DEPOSITORY INSTITUTION, AND YOUR USDC WALLET IS NOT A DEPOSIT ACCOUNT. YOUR USDC WALLET IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR THE SECURITIES INVESTOR PROTECTION CORPORATION (SIPC)."
(https://help.coinbase.com/en/coinbase/getting-started/genera...)
https://help.coinbase.com/en/coinbase/getting-started/genera...
But every line in the disclaimer are probably applicable to bond/USD ETFs as well, but people aren't exactly fleeing from those.
But either way, I think most people would not tend to view something like USDC as a bond (in which the bond holder is a creditor to the bond-issuing organization, with the associated risk-adjusted return on capital), but more like cash.
Regulation can be good, regulation can be bad, how you do it matters far more.
The short term solution to "everything's fucked" is to stop making it even more fucked.
That's not a solution, that's a vague sentiment.
1. Criminals don't want their activities to be tracked on a public ledger. Cash is anonymous. Bitcoin is not.
2. Criminals already have money laundering systems in-place, and relationships with corrupt bankers.
3. Cash is accepted at more places. So it's more useful to have.
We're talking trillions of dollars in USD crime here. It's not even close.
That's a massively higher share for cryptocurrencies than in legitimate transactions, isn't it?
While BTC is tracked between wallets and that's easily measured, it's unclear how to measure wallets being transferred between people.
That's awkward, given that:
* "All the bitcoins in the world [are] worth roughly $160.4 billion" - Investopedia
* USD M2 (2018): $16.1T - https://tradingeconomics.com/united-states/money-supply-m2
So really, BTC is used at least as much, relatively speaking, for crime, as USD.
There's a non zero chance that your criminal extortion scheme won't end up with bill serial numbers tracked by federal authorities. Hence that's probably why 97% of ransomware uses BTC.
What payment processor would ransomware use? Credit card processors would close their account. Nobody can close your Bitcoin account. That can be used for crime, but also is a legitimate protection against the abuses of governments and banks.
Before Bitcoin, they were using stuff like Walmart giftcards.
[1] https://www.wired.com/story/was-bitcoin-created-by-this-inte...