An interesting thought about DAI compared to the USD: with the USD there is a wealth transfer effect when new USD is printed as those who get the new USD get to spend it before the value has declined. With DAI the wealth effect does not transfer value to the banks and government when the value of DAI is inflated but instead the value is transferred to the individuals who opened CDPs who are able to pay back their loans with the devalued DAI or borrow more DAI at the new low price to sell into the market if DAI is overvalued outside of the maker system (say its trading at a high value on some exchange) While this is not a financial benefit to DAI holders vs USD holders it is valuable to the crypto ecosystem as a whole.
Greetings Andreas, I'm enrolled in the MOOC 16 and thoroughly enjoying it. The above video is more than 2 yrs old now. Have you changed your mind about DAI and other stable coins ?
"As they say, the rule of thumb is taking the amounts of money you're supposed to put into this project put it all on the table in front of you and set in on fire. Did you cry? if not that's the right amount of money" Amazing advice. :D
Thank you Mr Antonopoulos for your amazing work educating people in the crypto space :) Can I ask you which mobile phone you use please? iPhone or android / which is better for security? Many thanks
Would be curious to hear your thoughts on decentralized, non-collateralized, and price-flexible stability systems like the one BitBay markets (BAY) has. Would not having to rely on collateral make it a more simple and robust system?
My opinion is that if to use Bitcoin I have to refer to centralized exchanges, then I prefer to keep my money in the bank. Centralized exchanges and banks are the same things, except that banks are better because they are regulated. MakerDAO and all of Defi are a step forward towards the right
Weird, I just started researching more about Stablecoins , Derivatives & Securities today as I got stumped on a question about 14 hours ago. Timing or what!
If bitcoin were to become a world reserve currency, what's to prevent the custodians of the internet from stealling?? ie. macos, windows, and other operating systems. These companies would be the ultimate arbiters of entry in a crypto world. In proof of work, people say that the value of bitcoin is derived from its usage of power, if thats the case then wouldn't energy corporations profit the most from a world in which bitcoin is a world reserve currency?
Not they cannot implement spyware to steal your keys. You should only sign transactions from offline devices, which have no access to send back your spied key to the attacker. They also cannot prevent you from accessing your wallet. It is impossible to censor bitcoin because it can camouflage itself as any other internet content. So as long as you have access to internet, you have access to bitcoin. You could even use bitcoin through radio signals if you wanted to.
Sounds interesting but tether is just electronic usd, so just usd, as you said, and dai sounds like a way to charge interest on your ether collateral in your cdp, plus you may get liquidated, and whales could affect governance to thier benefit. A gold backed crypto would be a better option, in my opinion, providing you have a trustworthy way of ensuring that the gold is there (centralised) or can be held by the coin user (decentralised). This could be an investment, and would serve to make gold into a electronic coin with transactions that do not need a bank, just some central store. Still not really a crypto but better than tether or dai. Thanks for the discussion, always good to learn from you, Andreas!
I don't see how DAI is decentralized, they need to feed Ethereum prices to the smart contract every minute from a centralized wallet that is authorized to do so. There is a single person, or a group of people who have the ability to stop feeding prices or feed wrong prices. There is a central point of failure. Only a matter of time before it fails.
DAI has been far from stable and unusable from a merchants point of view. Plus the MakerDAO Stability Fee has risen to a ridiculous 16.5%. ie FAIL. Simply keep the majority of your stash in Bitcoin and use Fiat when needed. And since most daily commerce is conducted through Credit Cards a better solution for crypto holders is to petition Visa/MC/AmEx/Discover to accept Bitcoin to pay their monthly Card Balance. Over time BTC volatility will become less and less all by itself.
An interesting thought about DAI compared to the USD: with the USD there is a wealth transfer effect when new USD is printed as those who get the new USD get to spend it before the value has declined. With DAI the wealth effect does not transfer value to the banks and government when the value of DAI is inflated but instead the value is transferred to the individuals who opened CDPs who are able to pay back their loans with the devalued DAI or borrow more DAI at the new low price to sell into the market if DAI is overvalued outside of the maker system (say its trading at a high value on some exchange)
While this is not a financial benefit to DAI holders vs USD holders it is valuable to the crypto ecosystem as a whole.
Zack interesting
Greetings Andreas, I'm enrolled in the MOOC 16 and thoroughly enjoying it. The above video is more than 2 yrs old now. Have you changed your mind about DAI and other stable coins ?
"As they say, the rule of thumb is taking the amounts of money you're supposed to put into this project put it all on the table in front of you and set in on fire. Did you cry? if not that's the right amount of money" Amazing advice. :D
Thank you Mr Antonopoulos for your amazing work educating people in the crypto space :)
Can I ask you which mobile phone you use please? iPhone or android / which is better for security?
Many thanks
When Andreas speaks, I listen!
these videos are great and you're an amazing speaker Andreas so i think everyone would appreciate it if you got a better microphone
thnx for being so patient and clear. x
centralized stablecoin are too risky because USA could ban them. What do you think about Synthetix collateralized dollars SNX/sUSD ?
lol. Nice advice at the end. Forget about the money! Now my house is on fire too!
sound was crackling this time...more headroom reqd
So Ripple, Stellar, EOS, and TRON have a problem?
Best professor.
Would be curious to hear your thoughts on decentralized, non-collateralized, and price-flexible stability systems like the one BitBay markets (BAY) has. Would not having to rely on collateral make it a more simple and robust system?
My opinion is that if to use Bitcoin I have to refer to centralized exchanges, then I prefer to keep my money in the bank. Centralized exchanges and banks are the same things, except that banks are better because they are regulated. MakerDAO and all of Defi are a step forward towards the right
Always such great explanations, Thank you so much Andreas!
This guy is awesome. God of crypto.
Can someone please send a fraction of a Bitcoin to Andreas, so he can buy a better microphone?
Shut up go watch a pump channel
You made me laugh with the rule of thumb . Great sense of humour.
Weird, I just started researching more about Stablecoins , Derivatives & Securities today as I got stumped on a question about 14 hours ago. Timing or what!
Fantastic review of stablecoins and DAI. Thank you!
aprendiendo un día más
Thanks so much! I had to back up a few times because the info is so good/dense.
Glad it was helpful!
Great distinction, #Globalcoin is centralised digital money
Andreas can you please comment on EOS? TIA .
Andreas, let me borrow that shirt!
I want to see him wear a hoodie 🤟 And rapping a song about Technology ⚡😜
Co myślisz o nano ja uważam że jest lepsze od LN btc co ty masz do powiedzenia? Polish language
Thanks Andreas, very useful as always! You need more sleep. Get well soon. Take care :)
And the escrowed funds held by the custodian are banking with banks that operate on fractional reserves!
Why are some btc addresses invalid? how could we use it if it appears invalid
If bitcoin were to become a world reserve currency, what's to prevent the custodians of the internet from stealling?? ie. macos, windows, and other operating systems. These companies would be the ultimate arbiters of entry in a crypto world. In proof of work, people say that the value of bitcoin is derived from its usage of power, if thats the case then wouldn't energy corporations profit the most from a world in which bitcoin is a world reserve currency?
Nobody can crack encryption and steal bitcoin. Not your ISP, not your OS, not your hardware, not your government.
@@canadiandave8177 But they can stop you from ever accessing your wallet unless you want to get a bachelors in computer science to access your funds
@@canadiandave8177 They can implement spyware to steal your private keys
Not they cannot implement spyware to steal your keys. You should only sign transactions from offline devices, which have no access to send back your spied key to the attacker. They also cannot prevent you from accessing your wallet. It is impossible to censor bitcoin because it can camouflage itself as any other internet content. So as long as you have access to internet, you have access to bitcoin. You could even use bitcoin through radio signals if you wanted to.
Inflation's worse than you think because the items from then and now aren't equal. Not too much worse, though
Thank you Anto..
canadian tire has had a stable coin since the 60's
lol. I remember as a little boy. should of hodled it.
Crap Tire ---> crapcoin
Nice summary
stability and dollar in the same sentence?
it's reliably going drown, stable at about -2.5%/yr
Love the videos but I think you could do a lot better if you changed the format.
thank you, fantastic information!!!!!!
great video- exactly what i always think too
why not back the coin?
Sounds interesting but tether is just electronic usd, so just usd, as you said, and dai sounds like a way to charge interest on your ether collateral in your cdp, plus you may get liquidated, and whales could affect governance to thier benefit. A gold backed crypto would be a better option, in my opinion, providing you have a trustworthy way of ensuring that the gold is there (centralised) or can be held by the coin user (decentralised). This could be an investment, and would serve to make gold into a electronic coin with transactions that do not need a bank, just some central store. Still not really a crypto but better than tether or dai.
Thanks for the discussion, always good to learn from you, Andreas!
I don't see how DAI is decentralized, they need to feed Ethereum prices to the smart contract every minute from a centralized wallet that is authorized to do so. There is a single person, or a group of people who have the ability to stop feeding prices or feed wrong prices. There is a central point of failure. Only a matter of time before it fails.
i loved the last sentence
"This is how we judge whether this thing is a true blockchain or whether it is a pretender." By " pretender", you meant "bullshit"?
Who audits Tether?
Can you have a stablecoin that can rise in value, but not drop once it has reached that value?
joder no mercy i love u
DAI has been far from stable and unusable from a merchants point of view. Plus the MakerDAO Stability Fee has risen to a ridiculous 16.5%. ie FAIL.
Simply keep the majority of your stash in Bitcoin and use Fiat when needed. And since most daily commerce is conducted through Credit Cards a better solution for crypto holders is to petition Visa/MC/AmEx/Discover to accept Bitcoin to pay their monthly Card Balance.
Over time BTC volatility will become less and less all by itself.