Originally Published here on Medium
Preview #1: The Official Guide to Stablecoins LP
Yeah this is something I think about a lot and it seems like nobody else in the World can even see it.
The Saudis have required the USD as payment for oil since 1974…..in return for our military protecting the House of Saud and keeping them in power….a Good Deal for both parties.
I see no Stablecoin Team being able to break that alliance up.
Preview #2: The Official Guide to Stablecoins LP
The Least Common Denominator to Stability is having the Whole World believe your $1 ‘Coin’ is actually worth $1.
Everything else will be a Failure.
Preview #3: The Official Guide to Stablecoins LP
I don’t know if Stablecoin Teams truly do not see this, or if they are lying to themselves just so they can raise more money.
Preview #4: The Official Guide to Stablecoins LP
This is something very hard to achieve, much like BTC being the #1 Crypto and having the greatest Vol.
It will make Tether very hard to defeat as the “King of Stablecoins”.
Preview #5: The Official Guide to Stablecoins LP
This is the reason the Hong Kong Peg has survived for nearly 50 years. Nobody can come close to shorting the HKD equal to the $430B in HKMA’s Reserve Acct.
Preview #6: The Official Guide to Stablecoins LP
These are the incentives that Stablecoin Teams have while creating their Stablecoin.
I hate that the incentives are like that. Millions of people’s life savings will vanish in an instant when a highly-adopted Stablecoin fails.
Preview #7: The Official Guide to Stablecoins LP
It blows my mind how people choose to be Stupid and ignore the Truth. Stupid is a choice. Don’t choose to be Stupid.
Preview #8: The Official Guide to Stablecoins LP
I really love this. If a Stablecoin does not have the ‘Redeemability’ Property, then it’s true worth is: “whatever the market will pay for it at that moment”. No Bueno
Preview #9: The Official Guide to Stablecoins LP
I don’t see a way for any Stablecoin Team to compete against Digital Fiat. None of them even see it coming, so they have no plan for it….And it’s going to rock their World.
Preview #10: The Official Guide to Stablecoins LP
I know Bank-Issued Digital Fiat is going to have whitelisted address restrictions. Would that allow them to still be used with Smart Contracts?
Preview #11: The Official Guide to Stablecoins LP
This has been one idea I’ve had for 3P Stablecoin Teams to allow them to compete against Banks when Digital Fiat comes to market.
Preview #12: The Official Guide to Stablecoins LP
Their probability of winning those use-cases will grow massively upon the advent of Multi-Collateral Dai.
Preview #13: The Official Guide to Stablecoins LP
If it doesn’t have the ‘Redemption’ Property then users may get much less value out of their Stablecoin than they thought.
Preview #14: The Official Guide to Stablecoins LP
Unfortunately the Investors, the Users, and the Teams building them do not understand it.
Preview #15: The Official Guide to Stablecoins LP
I hate how big the spreads are on these machines, make them lower! Having a Stablecoin cash-out option, with something like a 0.5% fee would be so huge.
Preview #16: The Official Guide to Stablecoins LP
Because the US had most of the World’s Gold, post-war nations felt comfortable pegging their currencies to the USD, which in turn would be pegged (& redeemable for) Gold.
Preview #17: The Official Guide to Stablecoins LP
All the Seignorage Share Stablecoins are trying to do this and it’s so Stupid. Gotta somehow have Redeemability.
Preview #18: The Official Guide to Stablecoins LP
If a Stablecoin in not a Central IOU-issued one with Redeemability, then there has to be some market-making bot maintaining the peg early on in it’s life.
Preview #19: The Official Guide to Stablecoins LP
That’s the reason the USD is worth $1…the entire World believes it.
Preview #20: The Official Guide to Stablecoins LP
The leverage in any deal with Saudi Arabia is what actually matters. Without a military, the US has the upper-hand on any deal that requires a certain currency to be used to pay for oil.
Preview #21: The Official Guide to Stablecoins LP
When banks have a Digital Fiat offering, this is exactly what they’ll do. It brings in more customers and revenue for them, which leads to a Higher Share Price- totally worth it!
Preview #22: The Official Guide to Stablecoins LP
NuBits was destroyed after its peg was broken twice, so I’m being generous in alotting 3 chances.
Preview #23: The Official Guide to Stablecoins LP
All of that ‘trust’ comes from being able to walk into a Retail Location (aka a Bank Branch) and being able to redeem a Stablecoin 1:1 for Physical Fiat.
Preview #24: The Official Guide to Stablecoins LP
1st-Party and 2nd-Party Stablecoins are the most trusted extensions of the USD that can be created. The USD has a TON of Momentum & Network Effects that I don’t believe will slow down until the World runs out of Oil.
Preview #25: The Official Guide to Stablecoins LP
24 hours is enough time for somebody in the world to recognize they have a ‘guaranteed 11% profit’ by buying the Stablecoin at $0.90
Preview #26: The Official Guide to Stablecoins LP
This is True. If one can redeem their Stablecoin for $1 of USD, then it is insulated from Price Shocks that happen on the market.
Preview #27: The Official Guide to Stablecoins LP
Yeah, these Ideas are so Stupid. Why are all of the Stablecoin Founders of these projects choosing to be Stupid?
Preview #28: The Official Guide to Stablecoins LP
This is the Goliath all Stablecoin Teams need to be focused on.
Preview #29: The Official Guide to Stablecoins LP
24 hours is enough time for *someone* out in the World to come in and start buying the Stablecoin back up…….if they believe it will go back up to $1, that is.
Preview #30: The Official Guide to Stablecoins LP
The lack of Redemption is what can really kill these. Could be the result of government asset seizure, a flood taking the assets out of the warehouse, or simply the central team disappearing with the assets in the middle of the night.
Preview #31: The Official Guide to Stablecoins LP
Yeah it’s going to take a long time to Brainwash the public. The same way people were made to believe Paper Federal Reserves Notes were ‘real money’ took 20 years to be ingrained in society. Since you’re not the government it will probably take you a little bit longer.
Preview #32: The Official Guide to Stablecoins LP
This is the Least Common Denominator for how Snapchat, Twitter, Facebook, and Insta all won over the last 8 years. They were able to get ‘into the pocket of the Consumer’.
Preview #33: The Official Guide to Stablecoins LP
A backend-DEX is literally the ‘Internet of Crypto’. Buy, swap, invest, (& even pay) in any crypto asset, at anytime, anywhere on Earth.
Preview #34: The Official Guide to Stablecoins LP
MakerDAO is doing it “OK”. I wish they would allow people to redeem any Dai they have for $1 in Collateral, at any time, though. Someone get that as an option on your own On-Chain Collateralized Stablecoin!
Preview #35: The Official Guide to Stablecoins LP
Yeah this is exactly what will happen upon a $T ‘peg-attack’ by a bank. Will NOT be good for Holders.
Preview #36: The Official Guide to Stablecoins LP
Hopefully the Network Effects will be strong enough to give it some support early on, but those, too, will eventually fade.
BE NOTIFIED OF THE ALBUM RELEASE HERE: https://upscri.be/b3ab65/