USDT

CraigItIs

Congrats! It's the start of something bigger. I remember my first purchase, I spent about 20 USDT on BTC myself. But that felt nice, indeed.

CointestAdmin

#Regulation Pro-Arguments Below is an argument written by Magnetronaap which won 3rd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Regulation is necessary or a necessary evil if you like. With this entry I won't discuss specific regulation, because I'm not well versed enough in (financial) law from any country to point out what regulation specifically is best. Instead, I'll outline why regulation is necessary. > > If you browse r/cryptocurrency regularly you will find that many will disagree with this statement, but searching the subreddit for [scam](https://www.reddit.com/r/CryptoCurrency/search?q=scam&restrict_sr=on&include_over_18=on&sort=relevance&t=all) should tell you otherwise. Unfortunately, the cryptosphere is infested with scams and dodgy projects looking to make quick money and disappear. The question on regulation is not whether it should exist, but to what extent. > > Another real world example is the 2008 sub-prime mortgage implosion. For years bankers gave mortgages to people that couldn't afford it, assuming the housing prices would just keep on rising and in case of a default the mortgage would be covered by the increased price of the house. That in itself is a bad take, but not necessarily extremely destructive. It became far worse when these banks decided to bundle their mortgages together and sell these debt papers to other investors. Cutting these packages of debt further and further into even shittier packages with the shittiest of shit mortgages led to a situation where banks held massive amounts of mortgages of people who were never going to be able to repay their debt. Pair that with banks not keeping enough money in reserves to deal with such a massive setback and you have the powder keg that was 2008. Eventually the housing market imploded and American banks dragged the entire world into financial ruin. A lot of this could have been avoided by.. regulation. > > Unfortunately, the hypercapitalist American economy treated (and still treats) regulation the same as many r/cryptocurrency users. They hate it and don't want it, setting everyone up for a self-fulfilling prophecy. Because just like the housing market in 2008, the crypto investment bubble is going to be just fine, until it isn't. Tether is one such example in the crypto world that comes to mind. Treated by most as just fine, while a lot of us understand that there is no way that all of USDT is backed up by real capital. Meaning that if Tether ever gets into trouble it'll implode just like the 2008 housing market. > > That is why we need regulation. To protect individual investors and the entire cryptosphere at the same time. The examples pointing out why are out there, staring us in the face. We even acknowledge them, but at the same time scoff at ways to prevent them from becoming a crypto reality. Don't be [Ikaros](https://en.wikipedia.org/wiki/Icarus#:~:text=In%20Greek%20mythology%2C%20Icarus%20(%2F,the%20creator%20of%20the%20Labyrinth.&text=Icarus%20ignores%20Daedalus's%20instructions%20not,in%20his%20wings%20to%20melt.). ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

JoGallardo

Yeah, it's hard to know what would've happened if I'd bought BTC back then. I'm trying not to think about it too much. I'm sure I'll be able to get a full coin sooner or later, I need not too much USDT at this point, and will see new heights.

CointestAdmin

#Bitcoin Con-Arguments Below is an argument written by bkcrypt0 which won 1st place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > # Bitcoin is failing its original mission, and institutional interest is going to make things worse. > > **Background** > > Satoshi Nakamoto was a financial revolutionary out to counter the fiat money presses that destroy a currency's value with inflation (looking at you Turkey and the U.S.) The method—create a currency with a fixed supply, mined liked gold to make it scarce, and digitally transferable anywhere in the world between any parties. > > **Lack of Stability** > > Bitcoin can't be used as a global currency to replace fiat and eliminate politicized money printing because it has to hold its value steady over time. > > Why? > > People work for dollars, euros, yen, or yuan because there is relative stability in their paychecks from week to week. Their food, rent/mortgage, clothing, energy costs are also relatively stable (inflation is the cost for using that particular currency, but it beats a 50% drop in value over the course of a few months, and most inflation around the world isn't as bad as Turkey or Venezuela.) > > Imagine being paid a flat 1BTC / year for a particular job. But you live in the U.S. and the value of that BTC just dropped over the course of the year by 50%. Your lease is fixed over 12 months. Your food costs are the same or maybe even higher. Not only do you still get hit with local inflation, your buying power just dropped by half. > > This is why over $155B\* have flowed into stable coins like USDT, USDC, BUSD, UST, and DAI) > > **Lack of Accountability** > > The relatively anonymous transfer of value between parties was supposed to be a positive aspect of bitcoin. Your money, so do what you want with it. The problem is, there are a lot of other people that also want anonymity — human traffickers, dangerous drug smugglers, crime syndicates, tax evaders. Sure they can also use USD (and most of them do), but they are also traceable if they enter the global financial system. > > Making it easier for criminals to evade authorities makes everyone less safe. And sure, no one likes to pay taxes, but consider the alternative. Roads, schools, social services, some hospitals, police and fire departments, they all rely on taxes. > > **Lack of security** > > Unlike gold, which is pretty much indestructible, Bitcoin holdings depend on keeping seed phrases secure. If there were a house fire a gold bar might melt, but it can be reformed. A hardware wallet will be destroyed and any seed phrases stored on paper will be gone. That's part of gold's appeal as a store of value. > > Also, were there to be an internet outage in any widespread way, Bitcoin is useless as a transaction currency (part of the appeal of physical paper money and metal coins.) While unlikely, this scenario speaks to the lack of overall security in Bitcoin as a means of exchange (it has other benefits like cryptographic security, but its lack of physicality poses problems with public perception, and practical uses.) > > **Acts like fiat, moves like fiat . . .** > > Bitcoin remains highly correlated to traditional finance markets (two recent readings were the highest they've been -- see link below) and doesn't exactly act as a hedge against inflation when it plummets in the face of, well, high inflation. > > What this shows is that big money is controlling Bitcoin (and by association the rest of crypto) by reacting in the same risk-off reaction when inflation flares up. > > It goes something like this: > > * When inflation rises, the Fed tightens money supply to slow things down. > * Big money flees from riskier assets like company stock (they likely won't be as profitable in a high inflation world) > * Stock prices drop \[and here's the problem\] > * Money does not flow INTO crypto as a hedge against this risk, it also flees. > > **Conclusion** > > Fighting fiat money printing excesses was never going to be easy, but as with most revolutions, unintended consequences often derail the original vision. > > For one, government policies can avert the worst of political impulses. That doesn't require a wholesale financial market revolution. > > U.S. inflation has also been remarkably low for well over two decades. It was a once in a century global pandemic that forced a massive print run of dollars. > > Bitcoin has also become just another a plaything for the rich, a commodity to be bought and sold for profit rather than the antidote to centralized money creation. And because even larger stacks of fiat are on the sidelines waiting to jump in, volatility is going to get even worse with big swings as fund managers chase and take profits. > > None of this means Bitcoin has no value in global finance. It just means it isn't going to serve the purpose as originally intended. > > \------------------ > > * For Bitcoin correlation to stocks see: [https://seekingalpha.com/news/3784018-how-does-bitcoin-correlate-with-us-dollar-stocks-other-asset-classes](https://seekingalpha.com/news/3784018-how-does-bitcoin-correlate-with-us-dollar-stocks-other-asset-classes) > * Stablecoin totals for the five mentioned above were calculated on 1/11/21 from CoinMarketCap - [https://coinmarketcap.com/](https://coinmarketcap.com/) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2lpo/top_10_bitcoin_conarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/xu3vcu\/daily_general_discussion_october_3_2022_gmt0/).

GabeSter

Just don’t convert to USDT…

MaeronTargaryen

9 out of 12 huh? What’s left? USDC, USDT and BNB?

CointestAdmin

#Regulation Pro-Arguments Below is an argument written by Magnetronaap which won 3rd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Regulation is necessary or a necessary evil if you like. With this entry I won't discuss specific regulation, because I'm not well versed enough in (financial) law from any country to point out what regulation specifically is best. Instead, I'll outline why regulation is necessary. > > If you browse r/cryptocurrency regularly you will find that many will disagree with this statement, but searching the subreddit for [scam](https://www.reddit.com/r/CryptoCurrency/search?q=scam&restrict_sr=on&include_over_18=on&sort=relevance&t=all) should tell you otherwise. Unfortunately, the cryptosphere is infested with scams and dodgy projects looking to make quick money and disappear. The question on regulation is not whether it should exist, but to what extent. > > Another real world example is the 2008 sub-prime mortgage implosion. For years bankers gave mortgages to people that couldn't afford it, assuming the housing prices would just keep on rising and in case of a default the mortgage would be covered by the increased price of the house. That in itself is a bad take, but not necessarily extremely destructive. It became far worse when these banks decided to bundle their mortgages together and sell these debt papers to other investors. Cutting these packages of debt further and further into even shittier packages with the shittiest of shit mortgages led to a situation where banks held massive amounts of mortgages of people who were never going to be able to repay their debt. Pair that with banks not keeping enough money in reserves to deal with such a massive setback and you have the powder keg that was 2008. Eventually the housing market imploded and American banks dragged the entire world into financial ruin. A lot of this could have been avoided by.. regulation. > > Unfortunately, the hypercapitalist American economy treated (and still treats) regulation the same as many r/cryptocurrency users. They hate it and don't want it, setting everyone up for a self-fulfilling prophecy. Because just like the housing market in 2008, the crypto investment bubble is going to be just fine, until it isn't. Tether is one such example in the crypto world that comes to mind. Treated by most as just fine, while a lot of us understand that there is no way that all of USDT is backed up by real capital. Meaning that if Tether ever gets into trouble it'll implode just like the 2008 housing market. > > That is why we need regulation. To protect individual investors and the entire cryptosphere at the same time. The examples pointing out why are out there, staring us in the face. We even acknowledge them, but at the same time scoff at ways to prevent them from becoming a crypto reality. Don't be [Ikaros](https://en.wikipedia.org/wiki/Icarus#:~:text=In%20Greek%20mythology%2C%20Icarus%20(%2F,the%20creator%20of%20the%20Labyrinth.&text=Icarus%20ignores%20Daedalus's%20instructions%20not,in%20his%20wings%20to%20melt.). ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

pizdolizu

I don't which people are aware of it's potential, because the more I learn about crypto the less potential I see. Until it's scalable, it has no potential at all. We've been through that several years ago when merchant's started accepting crypto for payment and fees scyrocketed, rendering it useless. The only reason we had more bull runs were scams like USDT which balooned the prices with money that doesn't exist and boarding more suckers that fell for this. Baloon will pop and we're running out of suckers too. Recession doesn't help either. NFT's are not potential either, it's just a lure to catch more suckers that that will buy crypto. We might see another scam-based bull run, maybe more then one, but cryptopocalypse is inevitable at some point.

CointestAdmin

#USDC Con-Arguments Below is an argument written by Blendzi0r which won 1st place in the USDC Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > First published on: [30.09.2021](https://www.reddit.com/r/CryptoCurrency/comments/og2nfy/comment/hewkfxw/?utm_source=share&utm_medium=web2x&context=3) > > Last edited on: *no edits yet* > > # Intro > > USD Coin (USDC) is a digital dollar – a stablecoin pegged to US dollar. Stablecoins are a type of cryptocurrency with a value fixed to other assets (usually assets outside of the cryptocurrency space, e.g. fiat currencies, precious metals, etc.). Their main purposes are: 1) help investors escape the volatility of the cryptocurrency market and 2) allow investors to buy cryptocurrencies on exchanges that do not offer fiat deposits. USDC is currently the second largest stablecoin. \[1\], \[2\], \[3\] > > # Cons > > **It’s centralized** > > Decentralization is one of the core principles of crypto industry. USDC is centralized. Centre (nomen omen), the consortium that is responsible for USDC, can freeze anyone’s USDC assets whenever they want to. In 2020, they blacklisted an address and froze $100,000 in USDC in response to a request from law enforcement \[4\]. In this case, the freezing of assets was the right thing to do but nothing stops Centre from freezing assets in more controversial circumstances. > > ​ > > **It has fewer trading pairs and blockchains than tether** > > USDC announced in June 2021 that it wants to expand to 10 more blockchains in the near future \[5\]. But as of now, it’s present on 5 blockchains (Ethereum, Algorand, Solana, Stellar and Tron) whereas USDT, its main competitor, is available on 8 blockchains. \[6\] > > USDC is even more pale in comparison to USDT when it comes to the number of available trading pairs. There are barely any coins that aren’t paired with USDT, when USDC usually allows to buy only the most popular coins. > > ​ > > **Is it really that transparent?** > > Circle claimed in the past that all USD Coins are backed 1:1 against US dollar (cash). This is not the case anymore. And while people praise USDC for being more transparent than Tether and having better, more reliable reserve composition, just until recently Tether was completely nontransparent and lied about its reserves, so it’s hard to look bad when compared to Tether. > > Circle isn’t in fact that transparent. For example, they don’t disclose too much information about funds referred to as “approved investments”. **We don’t know how risky those investments are.** USDC has licenses in most of the states in the US. Some of those states have absolutely no restrictions and if Circle operates under the license from one of those states, it can invest in anything it wants. \[7\] > > Also, if you compare USDC’s breakdowns to e.g. breakdowns of banks or other financial institutions, it’s clear that **there’s room for much more transparency**. Take a look at e.g. JP Morgan’s breakdown: [https://am.jpmorgan.com/us/en/asset-management/adv/products/jpmorgan-prime-money-market-fund-morgan-4812a2702#/portfolio](https://am.jpmorgan.com/us/en/asset-management/adv/products/jpmorgan-prime-money-market-fund-morgan-4812a2702#/portfolio) > > This breakdown includes a lot of more details. You can check the issuer, market value, CUSIP number, effective maturity and so on **for each asset**. This kind of information is absent in USDC’s breakdowns. > > ​ > > **There are more transparent stablecoins and stablecoins that are fully backed by cash** > > There are other stablecoins which are transparent and release independent, monthly audit reports about their backing. But what is more important – **there are stablecoins that are fully backed by cash**. Gemini USD (GUSD) or TrueUSD (TUSD) are two examples. \[8\] > > Also, Tether is often criticized for being a very small company with very few employees and yet managing billions in assets. However, **Center had only one employee** since December 2020 to March 2021 – its CEO. Currently, it hires 6 people. \[9\] > > ​ > > **Regulatory risk** > > Recently, regulatory activities have been accelerating. Gary Gensler, the head of the Security and Exchanges Commission (SEC) has asked for more authority to regulate cryptocurrency with the focus on stablecoins. > > Moreover, Fed Chairman Jerome Powell has said that a U.S. **central bank digital currency could eliminate the need for stablecoins like USDC**. And since USDC is a centralized stablecoin, a regulatory crackdown and a US CBDC could drive out USDC. > > **\_\_\_\_\_\_\_\_\_\_** > > **^(Sources:)** > > ^(\[1\]) [^(https://f.hubspotusercontent30.net/hubfs/9304636/PDF/centre-whitepaper.pdf)](https://f.hubspotusercontent30.net/hubfs/9304636/PDF/centre-whitepaper.pdf) > > ^(\[2\]) [^(https://en.wikipedia.org/wiki/USD\\Coin)](https://en.wikipedia.org/wiki/USD\Coin) > > ^(\[3\]) [^(https://en.wikipedia.org/wiki/Stablecoin)](https://en.wikipedia.org/wiki/Stablecoin) > > ^(\[4\]) [^(https://www.coindesk.com/markets/2020/07/08/circle-confirms-freezing-100k-in-usdc-at-law-enforcements-request/)](https://www.coindesk.com/markets/2020/07/08/circle-confirms-freezing-100k-in-usdc-at-law-enforcements-request/) > > ^(\[5\]) [^(https://www.centre.io/blog/announcing-usdc-on-ten-new-blockchain-platforms)](https://www.centre.io/blog/announcing-usdc-on-ten-new-blockchain-platforms) > > ^(\[6\]) [^(https://www.circle.com/en/multichain-usdc)](https://www.circle.com/en/multichain-usdc) > > ^(\[7\] htps://assets.ctfassets.net/jg6lo9a2ukvr/3U43d7lUPmunUNLa0f9xui/24e439e3040c92179245485ebd1b5ba1/Gemini\\Dollar\_Examination\_Report\_08-31-21.pdf) > > ^(\[8\]) [^(https://www.coindesk.com/markets/2021/07/06/circle-isnt-winning-the-stablecoin-transparency-race/)](https://www.coindesk.com/markets/2021/07/06/circle-isnt-winning-the-stablecoin-transparency-race/) > > ^(\[9\]) [^(https://www.coindesk.com/business/2021/08/30/centre-consortium-hires-six-employees-including-former-circle-robinhood-executives/)](https://www.coindesk.com/business/2021/08/30/centre-consortium-hires-six-employees-including-former-circle-robinhood-executives/) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2moj/top_10_usd_coin_conarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/xta3ma/daily_general_discussion_october_2_2022_gmt0/).

CointestAdmin

#USDC Pro-Arguments Below is an argument written by Blendzi0r which won 1st place in the USDC Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > First published on: [30.09.2021](https://www.reddit.com/r/CryptoCurrency/comments/og2jo1/comment/hewg10a/?utm_source=share&utm_medium=web2x&context=3) > > Last edited on: 31.03.2021 > > # Intro > > USD Coin (USDC) is a digital dollar – a stablecoin pegged to US dollar. Stablecoins are a type of cryptocurrency with a value fixed to other assets (usually assets outside of the cryptocurrency space, e.g. fiat currencies, precious metals, etc.). Their main purposes are: 1) help investors escape the volatility of the cryptocurrency market and 2) allow investors to buy cryptocurrencies on exchanges that do not offer fiat deposits. USDC is currently the second largest stablecoin. ^(\[1\], \[2\], \[3\]) > > # Pros > > **It’s backed mostly by cash and cash equivalents** > > It must be admitted that Tether has improved its reserves a lot since their first report and their latest breakdown looks much better as USDT is now backed by cash and cash equivalents in around 85%, but USDC is still ahead as its **reserves are backed by cash and cash equivalents in 92%**. There are also many more questions in regards to the credibility of Tether’s reports. ^(\[4\], \[5\]) And USDC may soon leave Tether far behind as Circle, the company that issues and backs USDC, stated that it wants the reserves to consist only of cash, cash equivalents and U.S. Treasury bonds in the near future. ^(\[6\]) > > What the stablecoin reserves consist of is extremely important for liquidity. If a lot of people decided to cash out at the same time and there was no liquidity it could end in a disaster for the whole market. > > ​ > > **It’s partnered with Coinbase, Visa and others** > > Circle has partnered with Coinbase and together they founded a consortium named Centre that governs USDC. Circle has also partnered with banking institutions, including Signature Bank and Visa. The companies that invested in Circle include **Goldman Sachs**, Digital Currency Group (**Grayscale** Investments), **Fidelity** and **FTX**. > > It is also worth mentioning that Circle wants to follow in the footsteps of their partners (Coinbase) and also become a publicly traded company, which would add even more credibility to USDC. ^(\[7\]) > > ​ > > **It’s transparent** > > USDC is transparent in terms of its financial operations. It follows the US laws closely. It is also **audited by Grant Thornton, LLP every month** and monthly reports can be found on the [Centre Consortium’s website](https://www.centre.io/usdc-transparency). The reports, of course, include information on USDC reserves. > > ​ > > **It’s growing rapidly** > > At the beginning of the year, USDT had a 5 times bigger market cap than USDC ($20B vs. $4B). In March2021, this difference is much smaller and USDC has almsot 2/3 of the USDT's amrket cap. One can argue that this difference is still significant but be aware that **between April 2021 and April 2022 market cap of USDC grew by 400% while Tether’s market cap grew by 100%.** > > Also, while USDT’s daily volume decreased, USDC’s volume is on a rise. > > ​ > > **Coinsmart replaces Tether with USDC** > > On September 15, 2021, Coinsmart, Canadian cryptocurrency exchange, delisted USDT and adopted USDC instead ^(\[8\]). As regulators take a closer look at stablecoins, this trend might continue and **more entities might drop Tether in favor of a more transparent stablecoins.** > > ​ > > **USDC is centralized. But is it so bad in the case of a stablecoin?** > > Those who criticize USDC and other centralized stablecoins often give the example of DAI which in their opinion is decentralized. There is no question about USDC being dependent on Centre, but it must be said that DAI, on the other hand, is heavily dependent on USDC - more than half of DAI is generated by USDC collateral and collateralizetion against Centre’s stablecoin is more than 25%. ^(\[10\]) > > Decentralization is essential for cryptocurrency. But so is replacing fiat. So, is decentralization that important in the case of a stablecoin anyway? > > \_\_\_\_\_\_\_\_\_\_\_ > > **^(Sources:)** > > ^(\[1\]) [^(https://f.hubspotusercontent30.net/hubfs/9304636/PDF/centre-whitepaper.pdf)](https://f.hubspotusercontent30.net/hubfs/9304636/PDF/centre-whitepaper.pdf) > > ^(\[2\]) [^(https://en.wikipedia.org/wiki/USD\\Coin)](https://en.wikipedia.org/wiki/USD\Coin) > > ^(\[3\]) [^(https://en.wikipedia.org/wiki/Stablecoin)](https://en.wikipedia.org/wiki/Stablecoin) > > ^(\[4\]) [^(https://www.centre.io/hubfs/pdfs/attestation/2021%20Circle%20Examination%20Report%20August%202021%20Final.pdf?hsLang=en)](https://www.centre.io/hubfs/pdfs/attestation/2021%20Circle%20Examination%20Report%20August%202021%20Final.pdf?hsLang=en) > > ^(\[5\]) [^(https://tether.to/wp-content/uploads/2021/08/tether\\assuranceconsolidated\_reserves\_report\_2021-06-30.pdf)](https://tether.to/wp-content/uploads/2021/08/tether\assuranceconsolidated_reserves_report_2021-06-30.pdf) > > ^(\[6\]) [^(https://www.cnbc.com/2021/08/23/crypto-usdc-stablecoin-to-change-reserves-composition.html)](https://www.cnbc.com/2021/08/23/crypto-usdc-stablecoin-to-change-reserves-composition.html) > > ^(\[7\]) [^(https://fortune.com/2021/05/28/crypto-startup-circle-fidelity-ftx-stablecoin-usdc-coinbase-funding-spac/)](https://fortune.com/2021/05/28/crypto-startup-circle-fidelity-ftx-stablecoin-usdc-coinbase-funding-spac/) > > ^(\[8\]) [^(https://nitter.net/CoinSmart/status/1433472681626722309)](https://twitter.com/CoinSmart/status/1433472681626722309) > > ^(\[9\]) [^(https://www.coinsmart.com/blog/what-is-usdc/)](https://www.coinsmart.com/blog/what-is-usdc/) > > ^(\[10\]) [^(https://daistats.com/#/)](https://daistats.com/#/) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mln/top_10_usd_coin_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds.

CointestAdmin

#USDC Pro-Arguments Below is an argument written by Blendzi0r which won 1st place in the USDC Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > First published on: [30.09.2021](https://www.reddit.com/r/CryptoCurrency/comments/og2jo1/comment/hewg10a/?utm_source=share&utm_medium=web2x&context=3) > > Last edited on: 31.03.2021 > > # Intro > > USD Coin (USDC) is a digital dollar – a stablecoin pegged to US dollar. Stablecoins are a type of cryptocurrency with a value fixed to other assets (usually assets outside of the cryptocurrency space, e.g. fiat currencies, precious metals, etc.). Their main purposes are: 1) help investors escape the volatility of the cryptocurrency market and 2) allow investors to buy cryptocurrencies on exchanges that do not offer fiat deposits. USDC is currently the second largest stablecoin. ^(\[1\], \[2\], \[3\]) > > # Pros > > **It’s backed mostly by cash and cash equivalents** > > It must be admitted that Tether has improved its reserves a lot since their first report and their latest breakdown looks much better as USDT is now backed by cash and cash equivalents in around 85%, but USDC is still ahead as its **reserves are backed by cash and cash equivalents in 92%**. There are also many more questions in regards to the credibility of Tether’s reports. ^(\[4\], \[5\]) And USDC may soon leave Tether far behind as Circle, the company that issues and backs USDC, stated that it wants the reserves to consist only of cash, cash equivalents and U.S. Treasury bonds in the near future. ^(\[6\]) > > What the stablecoin reserves consist of is extremely important for liquidity. If a lot of people decided to cash out at the same time and there was no liquidity it could end in a disaster for the whole market. > > ​ > > **It’s partnered with Coinbase, Visa and others** > > Circle has partnered with Coinbase and together they founded a consortium named Centre that governs USDC. Circle has also partnered with banking institutions, including Signature Bank and Visa. The companies that invested in Circle include **Goldman Sachs**, Digital Currency Group (**Grayscale** Investments), **Fidelity** and **FTX**. > > It is also worth mentioning that Circle wants to follow in the footsteps of their partners (Coinbase) and also become a publicly traded company, which would add even more credibility to USDC. ^(\[7\]) > > ​ > > **It’s transparent** > > USDC is transparent in terms of its financial operations. It follows the US laws closely. It is also **audited by Grant Thornton, LLP every month** and monthly reports can be found on the [Centre Consortium’s website](https://www.centre.io/usdc-transparency). The reports, of course, include information on USDC reserves. > > ​ > > **It’s growing rapidly** > > At the beginning of the year, USDT had a 5 times bigger market cap than USDC ($20B vs. $4B). In March2021, this difference is much smaller and USDC has almsot 2/3 of the USDT's amrket cap. One can argue that this difference is still significant but be aware that **between April 2021 and April 2022 market cap of USDC grew by 400% while Tether’s market cap grew by 100%.** > > Also, while USDT’s daily volume decreased, USDC’s volume is on a rise. > > ​ > > **Coinsmart replaces Tether with USDC** > > On September 15, 2021, Coinsmart, Canadian cryptocurrency exchange, delisted USDT and adopted USDC instead ^(\[8\]). As regulators take a closer look at stablecoins, this trend might continue and **more entities might drop Tether in favor of a more transparent stablecoins.** > > ​ > > **USDC is centralized. But is it so bad in the case of a stablecoin?** > > Those who criticize USDC and other centralized stablecoins often give the example of DAI which in their opinion is decentralized. There is no question about USDC being dependent on Centre, but it must be said that DAI, on the other hand, is heavily dependent on USDC - more than half of DAI is generated by USDC collateral and collateralizetion against Centre’s stablecoin is more than 25%. ^(\[10\]) > > Decentralization is essential for cryptocurrency. But so is replacing fiat. So, is decentralization that important in the case of a stablecoin anyway? > > \_\_\_\_\_\_\_\_\_\_\_ > > **^(Sources:)** > > ^(\[1\]) [^(https://f.hubspotusercontent30.net/hubfs/9304636/PDF/centre-whitepaper.pdf)](https://f.hubspotusercontent30.net/hubfs/9304636/PDF/centre-whitepaper.pdf) > > ^(\[2\]) [^(https://en.wikipedia.org/wiki/USD\\Coin)](https://en.wikipedia.org/wiki/USD\Coin) > > ^(\[3\]) [^(https://en.wikipedia.org/wiki/Stablecoin)](https://en.wikipedia.org/wiki/Stablecoin) > > ^(\[4\]) [^(https://www.centre.io/hubfs/pdfs/attestation/2021%20Circle%20Examination%20Report%20August%202021%20Final.pdf?hsLang=en)](https://www.centre.io/hubfs/pdfs/attestation/2021%20Circle%20Examination%20Report%20August%202021%20Final.pdf?hsLang=en) > > ^(\[5\]) [^(https://tether.to/wp-content/uploads/2021/08/tether\\assuranceconsolidated\_reserves\_report\_2021-06-30.pdf)](https://tether.to/wp-content/uploads/2021/08/tether\assuranceconsolidated_reserves_report_2021-06-30.pdf) > > ^(\[6\]) [^(https://www.cnbc.com/2021/08/23/crypto-usdc-stablecoin-to-change-reserves-composition.html)](https://www.cnbc.com/2021/08/23/crypto-usdc-stablecoin-to-change-reserves-composition.html) > > ^(\[7\]) [^(https://fortune.com/2021/05/28/crypto-startup-circle-fidelity-ftx-stablecoin-usdc-coinbase-funding-spac/)](https://fortune.com/2021/05/28/crypto-startup-circle-fidelity-ftx-stablecoin-usdc-coinbase-funding-spac/) > > ^(\[8\]) [^(https://nitter.net/CoinSmart/status/1433472681626722309)](https://twitter.com/CoinSmart/status/1433472681626722309) > > ^(\[9\]) [^(https://www.coinsmart.com/blog/what-is-usdc/)](https://www.coinsmart.com/blog/what-is-usdc/) > > ^(\[10\]) [^(https://daistats.com/#/)](https://daistats.com/#/) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mln/top_10_usd_coin_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds.

Archtects

Oh right you buy soLU-NC2.0moon with USDT

BakedPotato840

And USDT

Zzzoem

Opensea is centralized like USDC and USDT.

SigSalvadore

USDT, USDC, BUSD, all in the top 10 too.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by jeff406 which won 2nd place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Terra is built as a modular blockchain within the [Cosmos](https://cosmos.network/ecosystem/apps) ecosystem, which means it exists alongside several other great DeFi platforms. > > First and foremost, Terra is providing decentralized stablecoins at a time when we need it most. The threat of a [Tether collapse](https://www.wired.com/story/why-tethers-collapse-would-be-bad-for-cryptocurrencies/) is as prevalent as ever, and TerraUSD (UST)--one of Terra's decentralized stablecoin offerings--is serving as a crucial component in the risk-management process. In fact, major cryptocurrency exchange [Kucoin has been increasing the amount of UST pairs available](https://www.kucoin.com/news/en-ust-market-to-add-new-trading-pairs), enabling their users to wean off USDT while still making all the necessary trades. > > Another reason that traders may struggle to kick Tether to the curb is the desire for stablecoin yield-farming. Luckily, Terra's [Anchor Protocol](https://www.anchorprotocol.com/) allows users to earn 19.6% APY on their TerraUSD tokens, "powered by staking returns from multiple Proof of Stake blockchains." Users are also able to borrow TerraUSD by bonding assets such as ATOM, DOT, or ETH. > > Additionally, [Mirror Protocol](https://mirrorprotocol.app/#/trade) allows users to gain exposure to synthetic securities without the hurdles of traditional brokerages. > > Terra's ecosystem of financial tools provide a decentralized, 1:1 replacement for modern financial services. Beyond the stability that TerraUSD brings as a replacement to Tether, Terra's services can truly bring the benefits of modern financial products to unbanked individuals across the globe. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Regulation Pro-Arguments Below is an argument written by Magnetronaap which won 3rd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Regulation is necessary or a necessary evil if you like. With this entry I won't discuss specific regulation, because I'm not well versed enough in (financial) law from any country to point out what regulation specifically is best. Instead, I'll outline why regulation is necessary. > > If you browse r/cryptocurrency regularly you will find that many will disagree with this statement, but searching the subreddit for [scam](https://www.reddit.com/r/CryptoCurrency/search?q=scam&restrict_sr=on&include_over_18=on&sort=relevance&t=all) should tell you otherwise. Unfortunately, the cryptosphere is infested with scams and dodgy projects looking to make quick money and disappear. The question on regulation is not whether it should exist, but to what extent. > > Another real world example is the 2008 sub-prime mortgage implosion. For years bankers gave mortgages to people that couldn't afford it, assuming the housing prices would just keep on rising and in case of a default the mortgage would be covered by the increased price of the house. That in itself is a bad take, but not necessarily extremely destructive. It became far worse when these banks decided to bundle their mortgages together and sell these debt papers to other investors. Cutting these packages of debt further and further into even shittier packages with the shittiest of shit mortgages led to a situation where banks held massive amounts of mortgages of people who were never going to be able to repay their debt. Pair that with banks not keeping enough money in reserves to deal with such a massive setback and you have the powder keg that was 2008. Eventually the housing market imploded and American banks dragged the entire world into financial ruin. A lot of this could have been avoided by.. regulation. > > Unfortunately, the hypercapitalist American economy treated (and still treats) regulation the same as many r/cryptocurrency users. They hate it and don't want it, setting everyone up for a self-fulfilling prophecy. Because just like the housing market in 2008, the crypto investment bubble is going to be just fine, until it isn't. Tether is one such example in the crypto world that comes to mind. Treated by most as just fine, while a lot of us understand that there is no way that all of USDT is backed up by real capital. Meaning that if Tether ever gets into trouble it'll implode just like the 2008 housing market. > > That is why we need regulation. To protect individual investors and the entire cryptosphere at the same time. The examples pointing out why are out there, staring us in the face. We even acknowledge them, but at the same time scoff at ways to prevent them from becoming a crypto reality. Don't be [Ikaros](https://en.wikipedia.org/wiki/Icarus#:~:text=In%20Greek%20mythology%2C%20Icarus%20(%2F,the%20creator%20of%20the%20Labyrinth.&text=Icarus%20ignores%20Daedalus's%20instructions%20not,in%20his%20wings%20to%20melt.). ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

CointestAdmin

#Regulation Pro-Arguments Below is an argument written by Magnetronaap which won 3rd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Regulation is necessary or a necessary evil if you like. With this entry I won't discuss specific regulation, because I'm not well versed enough in (financial) law from any country to point out what regulation specifically is best. Instead, I'll outline why regulation is necessary. > > If you browse r/cryptocurrency regularly you will find that many will disagree with this statement, but searching the subreddit for [scam](https://www.reddit.com/r/CryptoCurrency/search?q=scam&restrict_sr=on&include_over_18=on&sort=relevance&t=all) should tell you otherwise. Unfortunately, the cryptosphere is infested with scams and dodgy projects looking to make quick money and disappear. The question on regulation is not whether it should exist, but to what extent. > > Another real world example is the 2008 sub-prime mortgage implosion. For years bankers gave mortgages to people that couldn't afford it, assuming the housing prices would just keep on rising and in case of a default the mortgage would be covered by the increased price of the house. That in itself is a bad take, but not necessarily extremely destructive. It became far worse when these banks decided to bundle their mortgages together and sell these debt papers to other investors. Cutting these packages of debt further and further into even shittier packages with the shittiest of shit mortgages led to a situation where banks held massive amounts of mortgages of people who were never going to be able to repay their debt. Pair that with banks not keeping enough money in reserves to deal with such a massive setback and you have the powder keg that was 2008. Eventually the housing market imploded and American banks dragged the entire world into financial ruin. A lot of this could have been avoided by.. regulation. > > Unfortunately, the hypercapitalist American economy treated (and still treats) regulation the same as many r/cryptocurrency users. They hate it and don't want it, setting everyone up for a self-fulfilling prophecy. Because just like the housing market in 2008, the crypto investment bubble is going to be just fine, until it isn't. Tether is one such example in the crypto world that comes to mind. Treated by most as just fine, while a lot of us understand that there is no way that all of USDT is backed up by real capital. Meaning that if Tether ever gets into trouble it'll implode just like the 2008 housing market. > > That is why we need regulation. To protect individual investors and the entire cryptosphere at the same time. The examples pointing out why are out there, staring us in the face. We even acknowledge them, but at the same time scoff at ways to prevent them from becoming a crypto reality. Don't be [Ikaros](https://en.wikipedia.org/wiki/Icarus#:~:text=In%20Greek%20mythology%2C%20Icarus%20(%2F,the%20creator%20of%20the%20Labyrinth.&text=Icarus%20ignores%20Daedalus's%20instructions%20not,in%20his%20wings%20to%20melt.). ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

CointestAdmin

#USDC Pro-Arguments Below is an argument written by I-play-too-much-PUBG which won 3rd place in the USDC Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > USDC is the best stablecoin and here is why. > > > > > > > 1. USDC is transparent. Nothing is hidden in USDC due to its publicly verifiable attestations. This means it is much harder for criminal activity such as money laundering to occur. > > > > > 2. USDC is safe. USDC is backed by (debatably) the strongest economy in the world unlike some other stablecoins such as BUSD or DAI. USDC is only truly comparable to other US dollar backed coins such as USDT. > > > > > With that argument someone might say that USDT is also backed by the US dollar. With that, I follow with another argument. > > > > > 3. Due to the transparency and security of USDC, there is little to no “fairy money” or creation of cryptocurrency without being backed by anything. This is the strongest reason why USDC is superior to USDT. > > > > > > > 4. Although USDC is backed by the US dollar (centralized) it actually supports defi. USDC is an ERC-20 based token therefore it can be used by any dApp built on the ethereum network. > > > > > > In conclusion, USDT is currently used more and has a higher market cap than USDC, but USDC has stronger infrastructure and is more likely to be used largely in the future due to it being in support of defi. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mln/top_10_usd_coin_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds.

Dwaas_Bjaas

They’re not, but without them DeFi would not be what it is now. A lot of liquidity pools rely on USDT and USDC availability

Advanced_Error_9312

Correct me if im wrong but USDT and USDC are not defi.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by jeff406 which won 2nd place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Terra is built as a modular blockchain within the [Cosmos](https://cosmos.network/ecosystem/apps) ecosystem, which means it exists alongside several other great DeFi platforms. > > First and foremost, Terra is providing decentralized stablecoins at a time when we need it most. The threat of a [Tether collapse](https://www.wired.com/story/why-tethers-collapse-would-be-bad-for-cryptocurrencies/) is as prevalent as ever, and TerraUSD (UST)--one of Terra's decentralized stablecoin offerings--is serving as a crucial component in the risk-management process. In fact, major cryptocurrency exchange [Kucoin has been increasing the amount of UST pairs available](https://www.kucoin.com/news/en-ust-market-to-add-new-trading-pairs), enabling their users to wean off USDT while still making all the necessary trades. > > Another reason that traders may struggle to kick Tether to the curb is the desire for stablecoin yield-farming. Luckily, Terra's [Anchor Protocol](https://www.anchorprotocol.com/) allows users to earn 19.6% APY on their TerraUSD tokens, "powered by staking returns from multiple Proof of Stake blockchains." Users are also able to borrow TerraUSD by bonding assets such as ATOM, DOT, or ETH. > > Additionally, [Mirror Protocol](https://mirrorprotocol.app/#/trade) allows users to gain exposure to synthetic securities without the hurdles of traditional brokerages. > > Terra's ecosystem of financial tools provide a decentralized, 1:1 replacement for modern financial services. Beyond the stability that TerraUSD brings as a replacement to Tether, Terra's services can truly bring the benefits of modern financial products to unbanked individuals across the globe. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

Dwaas_Bjaas

You can “freeze” crypto by ordering an exchange to restrict access to users Another way to freeze crypto is by coding it into the crypto. Examples of this is USDT and USDC. These companies are able to lock the USDC/USDT in your wallet without you being able to do anything about it

WTFsince89

Can't remember exactly since I don't use it anymore but on Kucoin you can deposit/buy 10USDT via credit card.

CointestAdmin

#Bitcoin Con-Arguments Below is an argument written by bkcrypt0 which won 1st place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > # Bitcoin is failing its original mission, and institutional interest is going to make things worse. > > **Background** > > Satoshi Nakamoto was a financial revolutionary out to counter the fiat money presses that destroy a currency's value with inflation (looking at you Turkey and the U.S.) The method—create a currency with a fixed supply, mined liked gold to make it scarce, and digitally transferable anywhere in the world between any parties. > > **Lack of Stability** > > Bitcoin can't be used as a global currency to replace fiat and eliminate politicized money printing because it has to hold its value steady over time. > > Why? > > People work for dollars, euros, yen, or yuan because there is relative stability in their paychecks from week to week. Their food, rent/mortgage, clothing, energy costs are also relatively stable (inflation is the cost for using that particular currency, but it beats a 50% drop in value over the course of a few months, and most inflation around the world isn't as bad as Turkey or Venezuela.) > > Imagine being paid a flat 1BTC / year for a particular job. But you live in the U.S. and the value of that BTC just dropped over the course of the year by 50%. Your lease is fixed over 12 months. Your food costs are the same or maybe even higher. Not only do you still get hit with local inflation, your buying power just dropped by half. > > This is why over $155B\* have flowed into stable coins like USDT, USDC, BUSD, UST, and DAI) > > **Lack of Accountability** > > The relatively anonymous transfer of value between parties was supposed to be a positive aspect of bitcoin. Your money, so do what you want with it. The problem is, there are a lot of other people that also want anonymity — human traffickers, dangerous drug smugglers, crime syndicates, tax evaders. Sure they can also use USD (and most of them do), but they are also traceable if they enter the global financial system. > > Making it easier for criminals to evade authorities makes everyone less safe. And sure, no one likes to pay taxes, but consider the alternative. Roads, schools, social services, some hospitals, police and fire departments, they all rely on taxes. > > **Lack of security** > > Unlike gold, which is pretty much indestructible, Bitcoin holdings depend on keeping seed phrases secure. If there were a house fire a gold bar might melt, but it can be reformed. A hardware wallet will be destroyed and any seed phrases stored on paper will be gone. That's part of gold's appeal as a store of value. > > Also, were there to be an internet outage in any widespread way, Bitcoin is useless as a transaction currency (part of the appeal of physical paper money and metal coins.) While unlikely, this scenario speaks to the lack of overall security in Bitcoin as a means of exchange (it has other benefits like cryptographic security, but its lack of physicality poses problems with public perception, and practical uses.) > > **Acts like fiat, moves like fiat . . .** > > Bitcoin remains highly correlated to traditional finance markets (two recent readings were the highest they've been -- see link below) and doesn't exactly act as a hedge against inflation when it plummets in the face of, well, high inflation. > > What this shows is that big money is controlling Bitcoin (and by association the rest of crypto) by reacting in the same risk-off reaction when inflation flares up. > > It goes something like this: > > * When inflation rises, the Fed tightens money supply to slow things down. > * Big money flees from riskier assets like company stock (they likely won't be as profitable in a high inflation world) > * Stock prices drop \[and here's the problem\] > * Money does not flow INTO crypto as a hedge against this risk, it also flees. > > **Conclusion** > > Fighting fiat money printing excesses was never going to be easy, but as with most revolutions, unintended consequences often derail the original vision. > > For one, government policies can avert the worst of political impulses. That doesn't require a wholesale financial market revolution. > > U.S. inflation has also been remarkably low for well over two decades. It was a once in a century global pandemic that forced a massive print run of dollars. > > Bitcoin has also become just another a plaything for the rich, a commodity to be bought and sold for profit rather than the antidote to centralized money creation. And because even larger stacks of fiat are on the sidelines waiting to jump in, volatility is going to get even worse with big swings as fund managers chase and take profits. > > None of this means Bitcoin has no value in global finance. It just means it isn't going to serve the purpose as originally intended. > > \------------------ > > * For Bitcoin correlation to stocks see: [https://seekingalpha.com/news/3784018-how-does-bitcoin-correlate-with-us-dollar-stocks-other-asset-classes](https://seekingalpha.com/news/3784018-how-does-bitcoin-correlate-with-us-dollar-stocks-other-asset-classes) > * Stablecoin totals for the five mentioned above were calculated on 1/11/21 from CoinMarketCap - [https://coinmarketcap.com/](https://coinmarketcap.com/) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2lpo/top_10_bitcoin_conarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/xta3ma/daily_general_discussion_october_2_2022_gmt0/).

CointestAdmin

#Regulation Pro-Arguments Below is an argument written by Magnetronaap which won 3rd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Regulation is necessary or a necessary evil if you like. With this entry I won't discuss specific regulation, because I'm not well versed enough in (financial) law from any country to point out what regulation specifically is best. Instead, I'll outline why regulation is necessary. > > If you browse r/cryptocurrency regularly you will find that many will disagree with this statement, but searching the subreddit for [scam](https://www.reddit.com/r/CryptoCurrency/search?q=scam&restrict_sr=on&include_over_18=on&sort=relevance&t=all) should tell you otherwise. Unfortunately, the cryptosphere is infested with scams and dodgy projects looking to make quick money and disappear. The question on regulation is not whether it should exist, but to what extent. > > Another real world example is the 2008 sub-prime mortgage implosion. For years bankers gave mortgages to people that couldn't afford it, assuming the housing prices would just keep on rising and in case of a default the mortgage would be covered by the increased price of the house. That in itself is a bad take, but not necessarily extremely destructive. It became far worse when these banks decided to bundle their mortgages together and sell these debt papers to other investors. Cutting these packages of debt further and further into even shittier packages with the shittiest of shit mortgages led to a situation where banks held massive amounts of mortgages of people who were never going to be able to repay their debt. Pair that with banks not keeping enough money in reserves to deal with such a massive setback and you have the powder keg that was 2008. Eventually the housing market imploded and American banks dragged the entire world into financial ruin. A lot of this could have been avoided by.. regulation. > > Unfortunately, the hypercapitalist American economy treated (and still treats) regulation the same as many r/cryptocurrency users. They hate it and don't want it, setting everyone up for a self-fulfilling prophecy. Because just like the housing market in 2008, the crypto investment bubble is going to be just fine, until it isn't. Tether is one such example in the crypto world that comes to mind. Treated by most as just fine, while a lot of us understand that there is no way that all of USDT is backed up by real capital. Meaning that if Tether ever gets into trouble it'll implode just like the 2008 housing market. > > That is why we need regulation. To protect individual investors and the entire cryptosphere at the same time. The examples pointing out why are out there, staring us in the face. We even acknowledge them, but at the same time scoff at ways to prevent them from becoming a crypto reality. Don't be [Ikaros](https://en.wikipedia.org/wiki/Icarus#:~:text=In%20Greek%20mythology%2C%20Icarus%20(%2F,the%20creator%20of%20the%20Labyrinth.&text=Icarus%20ignores%20Daedalus's%20instructions%20not,in%20his%20wings%20to%20melt.). ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

sfgisz

Tether is being silently removed it seems. Observe the market cap of USDT and USDC. Tether should be overtaken in some months and then quietly become less of a threat.

silver-blazer29

Fuck USDT

CraigItIs

Good to see that people open their minds to Bitcoin and USDT. I hope there will be more people like him.

JoGallardo

Well, it's good to be early. I'm sure sooner or later the market will pump higher than ever and all USDT I've been investing lately will pay off. Now it's time to just HODL and wait.

CointestAdmin

#Regulation Pro-Arguments Below is an argument written by Magnetronaap which won 3rd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Regulation is necessary or a necessary evil if you like. With this entry I won't discuss specific regulation, because I'm not well versed enough in (financial) law from any country to point out what regulation specifically is best. Instead, I'll outline why regulation is necessary. > > If you browse r/cryptocurrency regularly you will find that many will disagree with this statement, but searching the subreddit for [scam](https://www.reddit.com/r/CryptoCurrency/search?q=scam&restrict_sr=on&include_over_18=on&sort=relevance&t=all) should tell you otherwise. Unfortunately, the cryptosphere is infested with scams and dodgy projects looking to make quick money and disappear. The question on regulation is not whether it should exist, but to what extent. > > Another real world example is the 2008 sub-prime mortgage implosion. For years bankers gave mortgages to people that couldn't afford it, assuming the housing prices would just keep on rising and in case of a default the mortgage would be covered by the increased price of the house. That in itself is a bad take, but not necessarily extremely destructive. It became far worse when these banks decided to bundle their mortgages together and sell these debt papers to other investors. Cutting these packages of debt further and further into even shittier packages with the shittiest of shit mortgages led to a situation where banks held massive amounts of mortgages of people who were never going to be able to repay their debt. Pair that with banks not keeping enough money in reserves to deal with such a massive setback and you have the powder keg that was 2008. Eventually the housing market imploded and American banks dragged the entire world into financial ruin. A lot of this could have been avoided by.. regulation. > > Unfortunately, the hypercapitalist American economy treated (and still treats) regulation the same as many r/cryptocurrency users. They hate it and don't want it, setting everyone up for a self-fulfilling prophecy. Because just like the housing market in 2008, the crypto investment bubble is going to be just fine, until it isn't. Tether is one such example in the crypto world that comes to mind. Treated by most as just fine, while a lot of us understand that there is no way that all of USDT is backed up by real capital. Meaning that if Tether ever gets into trouble it'll implode just like the 2008 housing market. > > That is why we need regulation. To protect individual investors and the entire cryptosphere at the same time. The examples pointing out why are out there, staring us in the face. We even acknowledge them, but at the same time scoff at ways to prevent them from becoming a crypto reality. Don't be [Ikaros](https://en.wikipedia.org/wiki/Icarus#:~:text=In%20Greek%20mythology%2C%20Icarus%20(%2F,the%20creator%20of%20the%20Labyrinth.&text=Icarus%20ignores%20Daedalus's%20instructions%20not,in%20his%20wings%20to%20melt.). ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

CointestAdmin

#Regulation Pro-Arguments Below is an argument written by Magnetronaap which won 3rd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Regulation is necessary or a necessary evil if you like. With this entry I won't discuss specific regulation, because I'm not well versed enough in (financial) law from any country to point out what regulation specifically is best. Instead, I'll outline why regulation is necessary. > > If you browse r/cryptocurrency regularly you will find that many will disagree with this statement, but searching the subreddit for [scam](https://www.reddit.com/r/CryptoCurrency/search?q=scam&restrict_sr=on&include_over_18=on&sort=relevance&t=all) should tell you otherwise. Unfortunately, the cryptosphere is infested with scams and dodgy projects looking to make quick money and disappear. The question on regulation is not whether it should exist, but to what extent. > > Another real world example is the 2008 sub-prime mortgage implosion. For years bankers gave mortgages to people that couldn't afford it, assuming the housing prices would just keep on rising and in case of a default the mortgage would be covered by the increased price of the house. That in itself is a bad take, but not necessarily extremely destructive. It became far worse when these banks decided to bundle their mortgages together and sell these debt papers to other investors. Cutting these packages of debt further and further into even shittier packages with the shittiest of shit mortgages led to a situation where banks held massive amounts of mortgages of people who were never going to be able to repay their debt. Pair that with banks not keeping enough money in reserves to deal with such a massive setback and you have the powder keg that was 2008. Eventually the housing market imploded and American banks dragged the entire world into financial ruin. A lot of this could have been avoided by.. regulation. > > Unfortunately, the hypercapitalist American economy treated (and still treats) regulation the same as many r/cryptocurrency users. They hate it and don't want it, setting everyone up for a self-fulfilling prophecy. Because just like the housing market in 2008, the crypto investment bubble is going to be just fine, until it isn't. Tether is one such example in the crypto world that comes to mind. Treated by most as just fine, while a lot of us understand that there is no way that all of USDT is backed up by real capital. Meaning that if Tether ever gets into trouble it'll implode just like the 2008 housing market. > > That is why we need regulation. To protect individual investors and the entire cryptosphere at the same time. The examples pointing out why are out there, staring us in the face. We even acknowledge them, but at the same time scoff at ways to prevent them from becoming a crypto reality. Don't be [Ikaros](https://en.wikipedia.org/wiki/Icarus#:~:text=In%20Greek%20mythology%2C%20Icarus%20(%2F,the%20creator%20of%20the%20Labyrinth.&text=Icarus%20ignores%20Daedalus's%20instructions%20not,in%20his%20wings%20to%20melt.). ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

CointestAdmin

#Bitcoin Con-Arguments Below is an argument written by bkcrypt0 which won 1st place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > # Bitcoin is failing its original mission, and institutional interest is going to make things worse. > > **Background** > > Satoshi Nakamoto was a financial revolutionary out to counter the fiat money presses that destroy a currency's value with inflation (looking at you Turkey and the U.S.) The method—create a currency with a fixed supply, mined liked gold to make it scarce, and digitally transferable anywhere in the world between any parties. > > **Lack of Stability** > > Bitcoin can't be used as a global currency to replace fiat and eliminate politicized money printing because it has to hold its value steady over time. > > Why? > > People work for dollars, euros, yen, or yuan because there is relative stability in their paychecks from week to week. Their food, rent/mortgage, clothing, energy costs are also relatively stable (inflation is the cost for using that particular currency, but it beats a 50% drop in value over the course of a few months, and most inflation around the world isn't as bad as Turkey or Venezuela.) > > Imagine being paid a flat 1BTC / year for a particular job. But you live in the U.S. and the value of that BTC just dropped over the course of the year by 50%. Your lease is fixed over 12 months. Your food costs are the same or maybe even higher. Not only do you still get hit with local inflation, your buying power just dropped by half. > > This is why over $155B\* have flowed into stable coins like USDT, USDC, BUSD, UST, and DAI) > > **Lack of Accountability** > > The relatively anonymous transfer of value between parties was supposed to be a positive aspect of bitcoin. Your money, so do what you want with it. The problem is, there are a lot of other people that also want anonymity — human traffickers, dangerous drug smugglers, crime syndicates, tax evaders. Sure they can also use USD (and most of them do), but they are also traceable if they enter the global financial system. > > Making it easier for criminals to evade authorities makes everyone less safe. And sure, no one likes to pay taxes, but consider the alternative. Roads, schools, social services, some hospitals, police and fire departments, they all rely on taxes. > > **Lack of security** > > Unlike gold, which is pretty much indestructible, Bitcoin holdings depend on keeping seed phrases secure. If there were a house fire a gold bar might melt, but it can be reformed. A hardware wallet will be destroyed and any seed phrases stored on paper will be gone. That's part of gold's appeal as a store of value. > > Also, were there to be an internet outage in any widespread way, Bitcoin is useless as a transaction currency (part of the appeal of physical paper money and metal coins.) While unlikely, this scenario speaks to the lack of overall security in Bitcoin as a means of exchange (it has other benefits like cryptographic security, but its lack of physicality poses problems with public perception, and practical uses.) > > **Acts like fiat, moves like fiat . . .** > > Bitcoin remains highly correlated to traditional finance markets (two recent readings were the highest they've been -- see link below) and doesn't exactly act as a hedge against inflation when it plummets in the face of, well, high inflation. > > What this shows is that big money is controlling Bitcoin (and by association the rest of crypto) by reacting in the same risk-off reaction when inflation flares up. > > It goes something like this: > > * When inflation rises, the Fed tightens money supply to slow things down. > * Big money flees from riskier assets like company stock (they likely won't be as profitable in a high inflation world) > * Stock prices drop \[and here's the problem\] > * Money does not flow INTO crypto as a hedge against this risk, it also flees. > > **Conclusion** > > Fighting fiat money printing excesses was never going to be easy, but as with most revolutions, unintended consequences often derail the original vision. > > For one, government policies can avert the worst of political impulses. That doesn't require a wholesale financial market revolution. > > U.S. inflation has also been remarkably low for well over two decades. It was a once in a century global pandemic that forced a massive print run of dollars. > > Bitcoin has also become just another a plaything for the rich, a commodity to be bought and sold for profit rather than the antidote to centralized money creation. And because even larger stacks of fiat are on the sidelines waiting to jump in, volatility is going to get even worse with big swings as fund managers chase and take profits. > > None of this means Bitcoin has no value in global finance. It just means it isn't going to serve the purpose as originally intended. > > \------------------ > > * For Bitcoin correlation to stocks see: [https://seekingalpha.com/news/3784018-how-does-bitcoin-correlate-with-us-dollar-stocks-other-asset-classes](https://seekingalpha.com/news/3784018-how-does-bitcoin-correlate-with-us-dollar-stocks-other-asset-classes) > * Stablecoin totals for the five mentioned above were calculated on 1/11/21 from CoinMarketCap - [https://coinmarketcap.com/](https://coinmarketcap.com/) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2lpo/top_10_bitcoin_conarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/xsqkga/monthly_optimists_discussion_october_2022/).

repomies69

USDT is centrally issued. Yes it is helpful tool for sure for many, but still technically and philosophically it is light years away from bitcoin core idea. Nothing wrong with it IMO, if you understand it and the risks feel free to use it. Personally I have never seen use for it.

CointestAdmin

#Bitcoin Con-Arguments Below is an argument written by bkcrypt0 which won 1st place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > # Bitcoin is failing its original mission, and institutional interest is going to make things worse. > > **Background** > > Satoshi Nakamoto was a financial revolutionary out to counter the fiat money presses that destroy a currency's value with inflation (looking at you Turkey and the U.S.) The method—create a currency with a fixed supply, mined liked gold to make it scarce, and digitally transferable anywhere in the world between any parties. > > **Lack of Stability** > > Bitcoin can't be used as a global currency to replace fiat and eliminate politicized money printing because it has to hold its value steady over time. > > Why? > > People work for dollars, euros, yen, or yuan because there is relative stability in their paychecks from week to week. Their food, rent/mortgage, clothing, energy costs are also relatively stable (inflation is the cost for using that particular currency, but it beats a 50% drop in value over the course of a few months, and most inflation around the world isn't as bad as Turkey or Venezuela.) > > Imagine being paid a flat 1BTC / year for a particular job. But you live in the U.S. and the value of that BTC just dropped over the course of the year by 50%. Your lease is fixed over 12 months. Your food costs are the same or maybe even higher. Not only do you still get hit with local inflation, your buying power just dropped by half. > > This is why over $155B\* have flowed into stable coins like USDT, USDC, BUSD, UST, and DAI) > > **Lack of Accountability** > > The relatively anonymous transfer of value between parties was supposed to be a positive aspect of bitcoin. Your money, so do what you want with it. The problem is, there are a lot of other people that also want anonymity — human traffickers, dangerous drug smugglers, crime syndicates, tax evaders. Sure they can also use USD (and most of them do), but they are also traceable if they enter the global financial system. > > Making it easier for criminals to evade authorities makes everyone less safe. And sure, no one likes to pay taxes, but consider the alternative. Roads, schools, social services, some hospitals, police and fire departments, they all rely on taxes. > > **Lack of security** > > Unlike gold, which is pretty much indestructible, Bitcoin holdings depend on keeping seed phrases secure. If there were a house fire a gold bar might melt, but it can be reformed. A hardware wallet will be destroyed and any seed phrases stored on paper will be gone. That's part of gold's appeal as a store of value. > > Also, were there to be an internet outage in any widespread way, Bitcoin is useless as a transaction currency (part of the appeal of physical paper money and metal coins.) While unlikely, this scenario speaks to the lack of overall security in Bitcoin as a means of exchange (it has other benefits like cryptographic security, but its lack of physicality poses problems with public perception, and practical uses.) > > **Acts like fiat, moves like fiat . . .** > > Bitcoin remains highly correlated to traditional finance markets (two recent readings were the highest they've been -- see link below) and doesn't exactly act as a hedge against inflation when it plummets in the face of, well, high inflation. > > What this shows is that big money is controlling Bitcoin (and by association the rest of crypto) by reacting in the same risk-off reaction when inflation flares up. > > It goes something like this: > > * When inflation rises, the Fed tightens money supply to slow things down. > * Big money flees from riskier assets like company stock (they likely won't be as profitable in a high inflation world) > * Stock prices drop \[and here's the problem\] > * Money does not flow INTO crypto as a hedge against this risk, it also flees. > > **Conclusion** > > Fighting fiat money printing excesses was never going to be easy, but as with most revolutions, unintended consequences often derail the original vision. > > For one, government policies can avert the worst of political impulses. That doesn't require a wholesale financial market revolution. > > U.S. inflation has also been remarkably low for well over two decades. It was a once in a century global pandemic that forced a massive print run of dollars. > > Bitcoin has also become just another a plaything for the rich, a commodity to be bought and sold for profit rather than the antidote to centralized money creation. And because even larger stacks of fiat are on the sidelines waiting to jump in, volatility is going to get even worse with big swings as fund managers chase and take profits. > > None of this means Bitcoin has no value in global finance. It just means it isn't going to serve the purpose as originally intended. > > \------------------ > > * For Bitcoin correlation to stocks see: [https://seekingalpha.com/news/3784018-how-does-bitcoin-correlate-with-us-dollar-stocks-other-asset-classes](https://seekingalpha.com/news/3784018-how-does-bitcoin-correlate-with-us-dollar-stocks-other-asset-classes) > * Stablecoin totals for the five mentioned above were calculated on 1/11/21 from CoinMarketCap - [https://coinmarketcap.com/](https://coinmarketcap.com/) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2lpo/top_10_bitcoin_conarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/xsqkga/monthly_optimists_discussion_october_2022/).

CointestAdmin

#Bitcoin Con-Arguments Below is an argument written by bkcrypt0 which won 1st place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > # Bitcoin is failing its original mission, and institutional interest is going to make things worse. > > **Background** > > Satoshi Nakamoto was a financial revolutionary out to counter the fiat money presses that destroy a currency's value with inflation (looking at you Turkey and the U.S.) The method—create a currency with a fixed supply, mined liked gold to make it scarce, and digitally transferable anywhere in the world between any parties. > > **Lack of Stability** > > Bitcoin can't be used as a global currency to replace fiat and eliminate politicized money printing because it has to hold its value steady over time. > > Why? > > People work for dollars, euros, yen, or yuan because there is relative stability in their paychecks from week to week. Their food, rent/mortgage, clothing, energy costs are also relatively stable (inflation is the cost for using that particular currency, but it beats a 50% drop in value over the course of a few months, and most inflation around the world isn't as bad as Turkey or Venezuela.) > > Imagine being paid a flat 1BTC / year for a particular job. But you live in the U.S. and the value of that BTC just dropped over the course of the year by 50%. Your lease is fixed over 12 months. Your food costs are the same or maybe even higher. Not only do you still get hit with local inflation, your buying power just dropped by half. > > This is why over $155B\* have flowed into stable coins like USDT, USDC, BUSD, UST, and DAI) > > **Lack of Accountability** > > The relatively anonymous transfer of value between parties was supposed to be a positive aspect of bitcoin. Your money, so do what you want with it. The problem is, there are a lot of other people that also want anonymity — human traffickers, dangerous drug smugglers, crime syndicates, tax evaders. Sure they can also use USD (and most of them do), but they are also traceable if they enter the global financial system. > > Making it easier for criminals to evade authorities makes everyone less safe. And sure, no one likes to pay taxes, but consider the alternative. Roads, schools, social services, some hospitals, police and fire departments, they all rely on taxes. > > **Lack of security** > > Unlike gold, which is pretty much indestructible, Bitcoin holdings depend on keeping seed phrases secure. If there were a house fire a gold bar might melt, but it can be reformed. A hardware wallet will be destroyed and any seed phrases stored on paper will be gone. That's part of gold's appeal as a store of value. > > Also, were there to be an internet outage in any widespread way, Bitcoin is useless as a transaction currency (part of the appeal of physical paper money and metal coins.) While unlikely, this scenario speaks to the lack of overall security in Bitcoin as a means of exchange (it has other benefits like cryptographic security, but its lack of physicality poses problems with public perception, and practical uses.) > > **Acts like fiat, moves like fiat . . .** > > Bitcoin remains highly correlated to traditional finance markets (two recent readings were the highest they've been -- see link below) and doesn't exactly act as a hedge against inflation when it plummets in the face of, well, high inflation. > > What this shows is that big money is controlling Bitcoin (and by association the rest of crypto) by reacting in the same risk-off reaction when inflation flares up. > > It goes something like this: > > * When inflation rises, the Fed tightens money supply to slow things down. > * Big money flees from riskier assets like company stock (they likely won't be as profitable in a high inflation world) > * Stock prices drop \[and here's the problem\] > * Money does not flow INTO crypto as a hedge against this risk, it also flees. > > **Conclusion** > > Fighting fiat money printing excesses was never going to be easy, but as with most revolutions, unintended consequences often derail the original vision. > > For one, government policies can avert the worst of political impulses. That doesn't require a wholesale financial market revolution. > > U.S. inflation has also been remarkably low for well over two decades. It was a once in a century global pandemic that forced a massive print run of dollars. > > Bitcoin has also become just another a plaything for the rich, a commodity to be bought and sold for profit rather than the antidote to centralized money creation. And because even larger stacks of fiat are on the sidelines waiting to jump in, volatility is going to get even worse with big swings as fund managers chase and take profits. > > None of this means Bitcoin has no value in global finance. It just means it isn't going to serve the purpose as originally intended. > > \------------------ > > * For Bitcoin correlation to stocks see: [https://seekingalpha.com/news/3784018-how-does-bitcoin-correlate-with-us-dollar-stocks-other-asset-classes](https://seekingalpha.com/news/3784018-how-does-bitcoin-correlate-with-us-dollar-stocks-other-asset-classes) > * Stablecoin totals for the five mentioned above were calculated on 1/11/21 from CoinMarketCap - [https://coinmarketcap.com/](https://coinmarketcap.com/) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2lpo/top_10_bitcoin_conarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/xsqkga/monthly_optimists_discussion_october_2022/).

CointestAdmin

#Regulation Pro-Arguments Below is an argument written by Magnetronaap which won 3rd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Regulation is necessary or a necessary evil if you like. With this entry I won't discuss specific regulation, because I'm not well versed enough in (financial) law from any country to point out what regulation specifically is best. Instead, I'll outline why regulation is necessary. > > If you browse r/cryptocurrency regularly you will find that many will disagree with this statement, but searching the subreddit for [scam](https://www.reddit.com/r/CryptoCurrency/search?q=scam&restrict_sr=on&include_over_18=on&sort=relevance&t=all) should tell you otherwise. Unfortunately, the cryptosphere is infested with scams and dodgy projects looking to make quick money and disappear. The question on regulation is not whether it should exist, but to what extent. > > Another real world example is the 2008 sub-prime mortgage implosion. For years bankers gave mortgages to people that couldn't afford it, assuming the housing prices would just keep on rising and in case of a default the mortgage would be covered by the increased price of the house. That in itself is a bad take, but not necessarily extremely destructive. It became far worse when these banks decided to bundle their mortgages together and sell these debt papers to other investors. Cutting these packages of debt further and further into even shittier packages with the shittiest of shit mortgages led to a situation where banks held massive amounts of mortgages of people who were never going to be able to repay their debt. Pair that with banks not keeping enough money in reserves to deal with such a massive setback and you have the powder keg that was 2008. Eventually the housing market imploded and American banks dragged the entire world into financial ruin. A lot of this could have been avoided by.. regulation. > > Unfortunately, the hypercapitalist American economy treated (and still treats) regulation the same as many r/cryptocurrency users. They hate it and don't want it, setting everyone up for a self-fulfilling prophecy. Because just like the housing market in 2008, the crypto investment bubble is going to be just fine, until it isn't. Tether is one such example in the crypto world that comes to mind. Treated by most as just fine, while a lot of us understand that there is no way that all of USDT is backed up by real capital. Meaning that if Tether ever gets into trouble it'll implode just like the 2008 housing market. > > That is why we need regulation. To protect individual investors and the entire cryptosphere at the same time. The examples pointing out why are out there, staring us in the face. We even acknowledge them, but at the same time scoff at ways to prevent them from becoming a crypto reality. Don't be [Ikaros](https://en.wikipedia.org/wiki/Icarus#:~:text=In%20Greek%20mythology%2C%20Icarus%20(%2F,the%20creator%20of%20the%20Labyrinth.&text=Icarus%20ignores%20Daedalus's%20instructions%20not,in%20his%20wings%20to%20melt.). ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

NYKyle610

USDT is essentially bitcoin for many people in countries with destabilized currency, similar to how BTC is for people in first world countries.

aneesh84

USDT for daily usage in Iran to avoid using local currency. long term only BTC

CointestAdmin

#USDC Con-Arguments Below is an argument written by Blendzi0r which won 1st place in the USDC Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > First published on: [30.09.2021](https://www.reddit.com/r/CryptoCurrency/comments/og2nfy/comment/hewkfxw/?utm_source=share&utm_medium=web2x&context=3) > > Last edited on: *no edits yet* > > # Intro > > USD Coin (USDC) is a digital dollar – a stablecoin pegged to US dollar. Stablecoins are a type of cryptocurrency with a value fixed to other assets (usually assets outside of the cryptocurrency space, e.g. fiat currencies, precious metals, etc.). Their main purposes are: 1) help investors escape the volatility of the cryptocurrency market and 2) allow investors to buy cryptocurrencies on exchanges that do not offer fiat deposits. USDC is currently the second largest stablecoin. \[1\], \[2\], \[3\] > > # Cons > > **It’s centralized** > > Decentralization is one of the core principles of crypto industry. USDC is centralized. Centre (nomen omen), the consortium that is responsible for USDC, can freeze anyone’s USDC assets whenever they want to. In 2020, they blacklisted an address and froze $100,000 in USDC in response to a request from law enforcement \[4\]. In this case, the freezing of assets was the right thing to do but nothing stops Centre from freezing assets in more controversial circumstances. > > ​ > > **It has fewer trading pairs and blockchains than tether** > > USDC announced in June 2021 that it wants to expand to 10 more blockchains in the near future \[5\]. But as of now, it’s present on 5 blockchains (Ethereum, Algorand, Solana, Stellar and Tron) whereas USDT, its main competitor, is available on 8 blockchains. \[6\] > > USDC is even more pale in comparison to USDT when it comes to the number of available trading pairs. There are barely any coins that aren’t paired with USDT, when USDC usually allows to buy only the most popular coins. > > ​ > > **Is it really that transparent?** > > Circle claimed in the past that all USD Coins are backed 1:1 against US dollar (cash). This is not the case anymore. And while people praise USDC for being more transparent than Tether and having better, more reliable reserve composition, just until recently Tether was completely nontransparent and lied about its reserves, so it’s hard to look bad when compared to Tether. > > Circle isn’t in fact that transparent. For example, they don’t disclose too much information about funds referred to as “approved investments”. **We don’t know how risky those investments are.** USDC has licenses in most of the states in the US. Some of those states have absolutely no restrictions and if Circle operates under the license from one of those states, it can invest in anything it wants. \[7\] > > Also, if you compare USDC’s breakdowns to e.g. breakdowns of banks or other financial institutions, it’s clear that **there’s room for much more transparency**. Take a look at e.g. JP Morgan’s breakdown: [https://am.jpmorgan.com/us/en/asset-management/adv/products/jpmorgan-prime-money-market-fund-morgan-4812a2702#/portfolio](https://am.jpmorgan.com/us/en/asset-management/adv/products/jpmorgan-prime-money-market-fund-morgan-4812a2702#/portfolio) > > This breakdown includes a lot of more details. You can check the issuer, market value, CUSIP number, effective maturity and so on **for each asset**. This kind of information is absent in USDC’s breakdowns. > > ​ > > **There are more transparent stablecoins and stablecoins that are fully backed by cash** > > There are other stablecoins which are transparent and release independent, monthly audit reports about their backing. But what is more important – **there are stablecoins that are fully backed by cash**. Gemini USD (GUSD) or TrueUSD (TUSD) are two examples. \[8\] > > Also, Tether is often criticized for being a very small company with very few employees and yet managing billions in assets. However, **Center had only one employee** since December 2020 to March 2021 – its CEO. Currently, it hires 6 people. \[9\] > > ​ > > **Regulatory risk** > > Recently, regulatory activities have been accelerating. Gary Gensler, the head of the Security and Exchanges Commission (SEC) has asked for more authority to regulate cryptocurrency with the focus on stablecoins. > > Moreover, Fed Chairman Jerome Powell has said that a U.S. **central bank digital currency could eliminate the need for stablecoins like USDC**. And since USDC is a centralized stablecoin, a regulatory crackdown and a US CBDC could drive out USDC. > > **\_\_\_\_\_\_\_\_\_\_** > > **^(Sources:)** > > ^(\[1\]) [^(https://f.hubspotusercontent30.net/hubfs/9304636/PDF/centre-whitepaper.pdf)](https://f.hubspotusercontent30.net/hubfs/9304636/PDF/centre-whitepaper.pdf) > > ^(\[2\]) [^(https://en.wikipedia.org/wiki/USD\\Coin)](https://en.wikipedia.org/wiki/USD\Coin) > > ^(\[3\]) [^(https://en.wikipedia.org/wiki/Stablecoin)](https://en.wikipedia.org/wiki/Stablecoin) > > ^(\[4\]) [^(https://www.coindesk.com/markets/2020/07/08/circle-confirms-freezing-100k-in-usdc-at-law-enforcements-request/)](https://www.coindesk.com/markets/2020/07/08/circle-confirms-freezing-100k-in-usdc-at-law-enforcements-request/) > > ^(\[5\]) [^(https://www.centre.io/blog/announcing-usdc-on-ten-new-blockchain-platforms)](https://www.centre.io/blog/announcing-usdc-on-ten-new-blockchain-platforms) > > ^(\[6\]) [^(https://www.circle.com/en/multichain-usdc)](https://www.circle.com/en/multichain-usdc) > > ^(\[7\] htps://assets.ctfassets.net/jg6lo9a2ukvr/3U43d7lUPmunUNLa0f9xui/24e439e3040c92179245485ebd1b5ba1/Gemini\\Dollar\_Examination\_Report\_08-31-21.pdf) > > ^(\[8\]) [^(https://www.coindesk.com/markets/2021/07/06/circle-isnt-winning-the-stablecoin-transparency-race/)](https://www.coindesk.com/markets/2021/07/06/circle-isnt-winning-the-stablecoin-transparency-race/) > > ^(\[9\]) [^(https://www.coindesk.com/business/2021/08/30/centre-consortium-hires-six-employees-including-former-circle-robinhood-executives/)](https://www.coindesk.com/business/2021/08/30/centre-consortium-hires-six-employees-including-former-circle-robinhood-executives/) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2moj/top_10_usd_coin_conarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/xsqkga/monthly_optimists_discussion_october_2022/).

CointestAdmin

#USDC Pro-Arguments Below is an argument written by I-play-too-much-PUBG which won 3rd place in the USDC Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > USDC is the best stablecoin and here is why. > > > > > > > 1. USDC is transparent. Nothing is hidden in USDC due to its publicly verifiable attestations. This means it is much harder for criminal activity such as money laundering to occur. > > > > > 2. USDC is safe. USDC is backed by (debatably) the strongest economy in the world unlike some other stablecoins such as BUSD or DAI. USDC is only truly comparable to other US dollar backed coins such as USDT. > > > > > With that argument someone might say that USDT is also backed by the US dollar. With that, I follow with another argument. > > > > > 3. Due to the transparency and security of USDC, there is little to no “fairy money” or creation of cryptocurrency without being backed by anything. This is the strongest reason why USDC is superior to USDT. > > > > > > > 4. Although USDC is backed by the US dollar (centralized) it actually supports defi. USDC is an ERC-20 based token therefore it can be used by any dApp built on the ethereum network. > > > > > > In conclusion, USDT is currently used more and has a higher market cap than USDC, but USDC has stronger infrastructure and is more likely to be used largely in the future due to it being in support of defi. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mln/top_10_usd_coin_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds.

CointestAdmin

#Bitcoin Con-Arguments Below is an argument written by bkcrypt0 which won 1st place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > # Bitcoin is failing its original mission, and institutional interest is going to make things worse. > > **Background** > > Satoshi Nakamoto was a financial revolutionary out to counter the fiat money presses that destroy a currency's value with inflation (looking at you Turkey and the U.S.) The method—create a currency with a fixed supply, mined liked gold to make it scarce, and digitally transferable anywhere in the world between any parties. > > **Lack of Stability** > > Bitcoin can't be used as a global currency to replace fiat and eliminate politicized money printing because it has to hold its value steady over time. > > Why? > > People work for dollars, euros, yen, or yuan because there is relative stability in their paychecks from week to week. Their food, rent/mortgage, clothing, energy costs are also relatively stable (inflation is the cost for using that particular currency, but it beats a 50% drop in value over the course of a few months, and most inflation around the world isn't as bad as Turkey or Venezuela.) > > Imagine being paid a flat 1BTC / year for a particular job. But you live in the U.S. and the value of that BTC just dropped over the course of the year by 50%. Your lease is fixed over 12 months. Your food costs are the same or maybe even higher. Not only do you still get hit with local inflation, your buying power just dropped by half. > > This is why over $155B\* have flowed into stable coins like USDT, USDC, BUSD, UST, and DAI) > > **Lack of Accountability** > > The relatively anonymous transfer of value between parties was supposed to be a positive aspect of bitcoin. Your money, so do what you want with it. The problem is, there are a lot of other people that also want anonymity — human traffickers, dangerous drug smugglers, crime syndicates, tax evaders. Sure they can also use USD (and most of them do), but they are also traceable if they enter the global financial system. > > Making it easier for criminals to evade authorities makes everyone less safe. And sure, no one likes to pay taxes, but consider the alternative. Roads, schools, social services, some hospitals, police and fire departments, they all rely on taxes. > > **Lack of security** > > Unlike gold, which is pretty much indestructible, Bitcoin holdings depend on keeping seed phrases secure. If there were a house fire a gold bar might melt, but it can be reformed. A hardware wallet will be destroyed and any seed phrases stored on paper will be gone. That's part of gold's appeal as a store of value. > > Also, were there to be an internet outage in any widespread way, Bitcoin is useless as a transaction currency (part of the appeal of physical paper money and metal coins.) While unlikely, this scenario speaks to the lack of overall security in Bitcoin as a means of exchange (it has other benefits like cryptographic security, but its lack of physicality poses problems with public perception, and practical uses.) > > **Acts like fiat, moves like fiat . . .** > > Bitcoin remains highly correlated to traditional finance markets (two recent readings were the highest they've been -- see link below) and doesn't exactly act as a hedge against inflation when it plummets in the face of, well, high inflation. > > What this shows is that big money is controlling Bitcoin (and by association the rest of crypto) by reacting in the same risk-off reaction when inflation flares up. > > It goes something like this: > > * When inflation rises, the Fed tightens money supply to slow things down. > * Big money flees from riskier assets like company stock (they likely won't be as profitable in a high inflation world) > * Stock prices drop \[and here's the problem\] > * Money does not flow INTO crypto as a hedge against this risk, it also flees. > > **Conclusion** > > Fighting fiat money printing excesses was never going to be easy, but as with most revolutions, unintended consequences often derail the original vision. > > For one, government policies can avert the worst of political impulses. That doesn't require a wholesale financial market revolution. > > U.S. inflation has also been remarkably low for well over two decades. It was a once in a century global pandemic that forced a massive print run of dollars. > > Bitcoin has also become just another a plaything for the rich, a commodity to be bought and sold for profit rather than the antidote to centralized money creation. And because even larger stacks of fiat are on the sidelines waiting to jump in, volatility is going to get even worse with big swings as fund managers chase and take profits. > > None of this means Bitcoin has no value in global finance. It just means it isn't going to serve the purpose as originally intended. > > \------------------ > > * For Bitcoin correlation to stocks see: [https://seekingalpha.com/news/3784018-how-does-bitcoin-correlate-with-us-dollar-stocks-other-asset-classes](https://seekingalpha.com/news/3784018-how-does-bitcoin-correlate-with-us-dollar-stocks-other-asset-classes) > * Stablecoin totals for the five mentioned above were calculated on 1/11/21 from CoinMarketCap - [https://coinmarketcap.com/](https://coinmarketcap.com/) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2lpo/top_10_bitcoin_conarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/xsqkga/monthly_optimists_discussion_october_2022/).

CointestAdmin

#Regulation Pro-Arguments Below is an argument written by Magnetronaap which won 3rd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Regulation is necessary or a necessary evil if you like. With this entry I won't discuss specific regulation, because I'm not well versed enough in (financial) law from any country to point out what regulation specifically is best. Instead, I'll outline why regulation is necessary. > > If you browse r/cryptocurrency regularly you will find that many will disagree with this statement, but searching the subreddit for [scam](https://www.reddit.com/r/CryptoCurrency/search?q=scam&restrict_sr=on&include_over_18=on&sort=relevance&t=all) should tell you otherwise. Unfortunately, the cryptosphere is infested with scams and dodgy projects looking to make quick money and disappear. The question on regulation is not whether it should exist, but to what extent. > > Another real world example is the 2008 sub-prime mortgage implosion. For years bankers gave mortgages to people that couldn't afford it, assuming the housing prices would just keep on rising and in case of a default the mortgage would be covered by the increased price of the house. That in itself is a bad take, but not necessarily extremely destructive. It became far worse when these banks decided to bundle their mortgages together and sell these debt papers to other investors. Cutting these packages of debt further and further into even shittier packages with the shittiest of shit mortgages led to a situation where banks held massive amounts of mortgages of people who were never going to be able to repay their debt. Pair that with banks not keeping enough money in reserves to deal with such a massive setback and you have the powder keg that was 2008. Eventually the housing market imploded and American banks dragged the entire world into financial ruin. A lot of this could have been avoided by.. regulation. > > Unfortunately, the hypercapitalist American economy treated (and still treats) regulation the same as many r/cryptocurrency users. They hate it and don't want it, setting everyone up for a self-fulfilling prophecy. Because just like the housing market in 2008, the crypto investment bubble is going to be just fine, until it isn't. Tether is one such example in the crypto world that comes to mind. Treated by most as just fine, while a lot of us understand that there is no way that all of USDT is backed up by real capital. Meaning that if Tether ever gets into trouble it'll implode just like the 2008 housing market. > > That is why we need regulation. To protect individual investors and the entire cryptosphere at the same time. The examples pointing out why are out there, staring us in the face. We even acknowledge them, but at the same time scoff at ways to prevent them from becoming a crypto reality. Don't be [Ikaros](https://en.wikipedia.org/wiki/Icarus#:~:text=In%20Greek%20mythology%2C%20Icarus%20(%2F,the%20creator%20of%20the%20Labyrinth.&text=Icarus%20ignores%20Daedalus's%20instructions%20not,in%20his%20wings%20to%20melt.). ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

CointestAdmin

#Bitcoin Con-Arguments Below is an argument written by bkcrypt0 which won 1st place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > # Bitcoin is failing its original mission, and institutional interest is going to make things worse. > > **Background** > > Satoshi Nakamoto was a financial revolutionary out to counter the fiat money presses that destroy a currency's value with inflation (looking at you Turkey and the U.S.) The method—create a currency with a fixed supply, mined liked gold to make it scarce, and digitally transferable anywhere in the world between any parties. > > **Lack of Stability** > > Bitcoin can't be used as a global currency to replace fiat and eliminate politicized money printing because it has to hold its value steady over time. > > Why? > > People work for dollars, euros, yen, or yuan because there is relative stability in their paychecks from week to week. Their food, rent/mortgage, clothing, energy costs are also relatively stable (inflation is the cost for using that particular currency, but it beats a 50% drop in value over the course of a few months, and most inflation around the world isn't as bad as Turkey or Venezuela.) > > Imagine being paid a flat 1BTC / year for a particular job. But you live in the U.S. and the value of that BTC just dropped over the course of the year by 50%. Your lease is fixed over 12 months. Your food costs are the same or maybe even higher. Not only do you still get hit with local inflation, your buying power just dropped by half. > > This is why over $155B\* have flowed into stable coins like USDT, USDC, BUSD, UST, and DAI) > > **Lack of Accountability** > > The relatively anonymous transfer of value between parties was supposed to be a positive aspect of bitcoin. Your money, so do what you want with it. The problem is, there are a lot of other people that also want anonymity — human traffickers, dangerous drug smugglers, crime syndicates, tax evaders. Sure they can also use USD (and most of them do), but they are also traceable if they enter the global financial system. > > Making it easier for criminals to evade authorities makes everyone less safe. And sure, no one likes to pay taxes, but consider the alternative. Roads, schools, social services, some hospitals, police and fire departments, they all rely on taxes. > > **Lack of security** > > Unlike gold, which is pretty much indestructible, Bitcoin holdings depend on keeping seed phrases secure. If there were a house fire a gold bar might melt, but it can be reformed. A hardware wallet will be destroyed and any seed phrases stored on paper will be gone. That's part of gold's appeal as a store of value. > > Also, were there to be an internet outage in any widespread way, Bitcoin is useless as a transaction currency (part of the appeal of physical paper money and metal coins.) While unlikely, this scenario speaks to the lack of overall security in Bitcoin as a means of exchange (it has other benefits like cryptographic security, but its lack of physicality poses problems with public perception, and practical uses.) > > **Acts like fiat, moves like fiat . . .** > > Bitcoin remains highly correlated to traditional finance markets (two recent readings were the highest they've been -- see link below) and doesn't exactly act as a hedge against inflation when it plummets in the face of, well, high inflation. > > What this shows is that big money is controlling Bitcoin (and by association the rest of crypto) by reacting in the same risk-off reaction when inflation flares up. > > It goes something like this: > > * When inflation rises, the Fed tightens money supply to slow things down. > * Big money flees from riskier assets like company stock (they likely won't be as profitable in a high inflation world) > * Stock prices drop \[and here's the problem\] > * Money does not flow INTO crypto as a hedge against this risk, it also flees. > > **Conclusion** > > Fighting fiat money printing excesses was never going to be easy, but as with most revolutions, unintended consequences often derail the original vision. > > For one, government policies can avert the worst of political impulses. That doesn't require a wholesale financial market revolution. > > U.S. inflation has also been remarkably low for well over two decades. It was a once in a century global pandemic that forced a massive print run of dollars. > > Bitcoin has also become just another a plaything for the rich, a commodity to be bought and sold for profit rather than the antidote to centralized money creation. And because even larger stacks of fiat are on the sidelines waiting to jump in, volatility is going to get even worse with big swings as fund managers chase and take profits. > > None of this means Bitcoin has no value in global finance. It just means it isn't going to serve the purpose as originally intended. > > \------------------ > > * For Bitcoin correlation to stocks see: [https://seekingalpha.com/news/3784018-how-does-bitcoin-correlate-with-us-dollar-stocks-other-asset-classes](https://seekingalpha.com/news/3784018-how-does-bitcoin-correlate-with-us-dollar-stocks-other-asset-classes) > * Stablecoin totals for the five mentioned above were calculated on 1/11/21 from CoinMarketCap - [https://coinmarketcap.com/](https://coinmarketcap.com/) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2lpo/top_10_bitcoin_conarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/xsqkga/monthly_optimists_discussion_october_2022/).

80worf80

Probably one of those "don't get caught" laws. They can't actually stop anyone from moving (most) crypto from one wallet to another. Excluding centralized shitcoins like USDT or USDC with wallet blacklist functions

CointestAdmin

#Regulation Pro-Arguments Below is an argument written by Magnetronaap which won 3rd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Regulation is necessary or a necessary evil if you like. With this entry I won't discuss specific regulation, because I'm not well versed enough in (financial) law from any country to point out what regulation specifically is best. Instead, I'll outline why regulation is necessary. > > If you browse r/cryptocurrency regularly you will find that many will disagree with this statement, but searching the subreddit for [scam](https://www.reddit.com/r/CryptoCurrency/search?q=scam&restrict_sr=on&include_over_18=on&sort=relevance&t=all) should tell you otherwise. Unfortunately, the cryptosphere is infested with scams and dodgy projects looking to make quick money and disappear. The question on regulation is not whether it should exist, but to what extent. > > Another real world example is the 2008 sub-prime mortgage implosion. For years bankers gave mortgages to people that couldn't afford it, assuming the housing prices would just keep on rising and in case of a default the mortgage would be covered by the increased price of the house. That in itself is a bad take, but not necessarily extremely destructive. It became far worse when these banks decided to bundle their mortgages together and sell these debt papers to other investors. Cutting these packages of debt further and further into even shittier packages with the shittiest of shit mortgages led to a situation where banks held massive amounts of mortgages of people who were never going to be able to repay their debt. Pair that with banks not keeping enough money in reserves to deal with such a massive setback and you have the powder keg that was 2008. Eventually the housing market imploded and American banks dragged the entire world into financial ruin. A lot of this could have been avoided by.. regulation. > > Unfortunately, the hypercapitalist American economy treated (and still treats) regulation the same as many r/cryptocurrency users. They hate it and don't want it, setting everyone up for a self-fulfilling prophecy. Because just like the housing market in 2008, the crypto investment bubble is going to be just fine, until it isn't. Tether is one such example in the crypto world that comes to mind. Treated by most as just fine, while a lot of us understand that there is no way that all of USDT is backed up by real capital. Meaning that if Tether ever gets into trouble it'll implode just like the 2008 housing market. > > That is why we need regulation. To protect individual investors and the entire cryptosphere at the same time. The examples pointing out why are out there, staring us in the face. We even acknowledge them, but at the same time scoff at ways to prevent them from becoming a crypto reality. Don't be [Ikaros](https://en.wikipedia.org/wiki/Icarus#:~:text=In%20Greek%20mythology%2C%20Icarus%20(%2F,the%20creator%20of%20the%20Labyrinth.&text=Icarus%20ignores%20Daedalus's%20instructions%20not,in%20his%20wings%20to%20melt.). ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

CointestAdmin

#Regulation Pro-Arguments Below is an argument written by Magnetronaap which won 3rd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Regulation is necessary or a necessary evil if you like. With this entry I won't discuss specific regulation, because I'm not well versed enough in (financial) law from any country to point out what regulation specifically is best. Instead, I'll outline why regulation is necessary. > > If you browse r/cryptocurrency regularly you will find that many will disagree with this statement, but searching the subreddit for [scam](https://www.reddit.com/r/CryptoCurrency/search?q=scam&restrict_sr=on&include_over_18=on&sort=relevance&t=all) should tell you otherwise. Unfortunately, the cryptosphere is infested with scams and dodgy projects looking to make quick money and disappear. The question on regulation is not whether it should exist, but to what extent. > > Another real world example is the 2008 sub-prime mortgage implosion. For years bankers gave mortgages to people that couldn't afford it, assuming the housing prices would just keep on rising and in case of a default the mortgage would be covered by the increased price of the house. That in itself is a bad take, but not necessarily extremely destructive. It became far worse when these banks decided to bundle their mortgages together and sell these debt papers to other investors. Cutting these packages of debt further and further into even shittier packages with the shittiest of shit mortgages led to a situation where banks held massive amounts of mortgages of people who were never going to be able to repay their debt. Pair that with banks not keeping enough money in reserves to deal with such a massive setback and you have the powder keg that was 2008. Eventually the housing market imploded and American banks dragged the entire world into financial ruin. A lot of this could have been avoided by.. regulation. > > Unfortunately, the hypercapitalist American economy treated (and still treats) regulation the same as many r/cryptocurrency users. They hate it and don't want it, setting everyone up for a self-fulfilling prophecy. Because just like the housing market in 2008, the crypto investment bubble is going to be just fine, until it isn't. Tether is one such example in the crypto world that comes to mind. Treated by most as just fine, while a lot of us understand that there is no way that all of USDT is backed up by real capital. Meaning that if Tether ever gets into trouble it'll implode just like the 2008 housing market. > > That is why we need regulation. To protect individual investors and the entire cryptosphere at the same time. The examples pointing out why are out there, staring us in the face. We even acknowledge them, but at the same time scoff at ways to prevent them from becoming a crypto reality. Don't be [Ikaros](https://en.wikipedia.org/wiki/Icarus#:~:text=In%20Greek%20mythology%2C%20Icarus%20(%2F,the%20creator%20of%20the%20Labyrinth.&text=Icarus%20ignores%20Daedalus's%20instructions%20not,in%20his%20wings%20to%20melt.). ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

helloyouahead

Hi everyone, I am looking for a stable coin (USDT, BUSD for example or other coins that are widely considered to not decrease or increase widely in value) in order to accrue interest. Sadly, Binance now only offers 0.8% APY interest on BUSD/USDT (it was 8% not so long ago for investments <10k USD). Obviously this is way too low as I can get a higher interest of 2.5-3% for USD through traditional banks. I know it might go back up but I cannot use this portion of my investments to require such an active management, I just want to invest and let it rest for 6months/a year at least. Are there any viable options for this or should I only consider cryptos for value speculation purposes today? Any safe platform you would recommend? Thanks tons community

Concept-Plastic

$24 at current rate[MOONS/USDT](https://www.gate.io/pt/trade/MOON_USDT)

futurenotion

You will be taxed on any gains you make, even if you haven’t sold to fiat and withdrawn the money out to your bank. So, say you bought 1 BTC at $20k USD. Then, 3 months later, BTC price increases to $60k USD and you sell your 1 BTC (taxable event). That’s a $40k USD gain. You will need to pay taxes on that. Now, rather than sell you 1 BTC that’s worth $60k USD into 100% USD, you instead buy immediately into ETH. That’s still a taxable event. Your BTC still increased and you sold for profit. Even if you sell your 1 BTC that’s worth $60k USD onto USDT, that will be a taxable event. Now, what happens if all the ETH you bought at $60k USD suddenly drops to $1 USD per ETH? Well, if you sell, that is a taxable event. But, in this case, you are at a loss (a very massive loss). This is a very brief overview, but I hope it makes sense.

CointestAdmin

#Bitcoin Con-Arguments Below is an argument written by bkcrypt0 which won 1st place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > # Bitcoin is failing its original mission, and institutional interest is going to make things worse. > > **Background** > > Satoshi Nakamoto was a financial revolutionary out to counter the fiat money presses that destroy a currency's value with inflation (looking at you Turkey and the U.S.) The method—create a currency with a fixed supply, mined liked gold to make it scarce, and digitally transferable anywhere in the world between any parties. > > **Lack of Stability** > > Bitcoin can't be used as a global currency to replace fiat and eliminate politicized money printing because it has to hold its value steady over time. > > Why? > > People work for dollars, euros, yen, or yuan because there is relative stability in their paychecks from week to week. Their food, rent/mortgage, clothing, energy costs are also relatively stable (inflation is the cost for using that particular currency, but it beats a 50% drop in value over the course of a few months, and most inflation around the world isn't as bad as Turkey or Venezuela.) > > Imagine being paid a flat 1BTC / year for a particular job. But you live in the U.S. and the value of that BTC just dropped over the course of the year by 50%. Your lease is fixed over 12 months. Your food costs are the same or maybe even higher. Not only do you still get hit with local inflation, your buying power just dropped by half. > > This is why over $155B\* have flowed into stable coins like USDT, USDC, BUSD, UST, and DAI) > > **Lack of Accountability** > > The relatively anonymous transfer of value between parties was supposed to be a positive aspect of bitcoin. Your money, so do what you want with it. The problem is, there are a lot of other people that also want anonymity — human traffickers, dangerous drug smugglers, crime syndicates, tax evaders. Sure they can also use USD (and most of them do), but they are also traceable if they enter the global financial system. > > Making it easier for criminals to evade authorities makes everyone less safe. And sure, no one likes to pay taxes, but consider the alternative. Roads, schools, social services, some hospitals, police and fire departments, they all rely on taxes. > > **Lack of security** > > Unlike gold, which is pretty much indestructible, Bitcoin holdings depend on keeping seed phrases secure. If there were a house fire a gold bar might melt, but it can be reformed. A hardware wallet will be destroyed and any seed phrases stored on paper will be gone. That's part of gold's appeal as a store of value. > > Also, were there to be an internet outage in any widespread way, Bitcoin is useless as a transaction currency (part of the appeal of physical paper money and metal coins.) While unlikely, this scenario speaks to the lack of overall security in Bitcoin as a means of exchange (it has other benefits like cryptographic security, but its lack of physicality poses problems with public perception, and practical uses.) > > **Acts like fiat, moves like fiat . . .** > > Bitcoin remains highly correlated to traditional finance markets (two recent readings were the highest they've been -- see link below) and doesn't exactly act as a hedge against inflation when it plummets in the face of, well, high inflation. > > What this shows is that big money is controlling Bitcoin (and by association the rest of crypto) by reacting in the same risk-off reaction when inflation flares up. > > It goes something like this: > > * When inflation rises, the Fed tightens money supply to slow things down. > * Big money flees from riskier assets like company stock (they likely won't be as profitable in a high inflation world) > * Stock prices drop \[and here's the problem\] > * Money does not flow INTO crypto as a hedge against this risk, it also flees. > > **Conclusion** > > Fighting fiat money printing excesses was never going to be easy, but as with most revolutions, unintended consequences often derail the original vision. > > For one, government policies can avert the worst of political impulses. That doesn't require a wholesale financial market revolution. > > U.S. inflation has also been remarkably low for well over two decades. It was a once in a century global pandemic that forced a massive print run of dollars. > > Bitcoin has also become just another a plaything for the rich, a commodity to be bought and sold for profit rather than the antidote to centralized money creation. And because even larger stacks of fiat are on the sidelines waiting to jump in, volatility is going to get even worse with big swings as fund managers chase and take profits. > > None of this means Bitcoin has no value in global finance. It just means it isn't going to serve the purpose as originally intended. > > \------------------ > > * For Bitcoin correlation to stocks see: [https://seekingalpha.com/news/3784018-how-does-bitcoin-correlate-with-us-dollar-stocks-other-asset-classes](https://seekingalpha.com/news/3784018-how-does-bitcoin-correlate-with-us-dollar-stocks-other-asset-classes) > * Stablecoin totals for the five mentioned above were calculated on 1/11/21 from CoinMarketCap - [https://coinmarketcap.com/](https://coinmarketcap.com/) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2lpo/top_10_bitcoin_conarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/xsglev/daily_general_discussion_october_1_2022_gmt0/).

CointestAdmin

#Bitcoin Con-Arguments Below is an argument written by bkcrypt0 which won 1st place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > # Bitcoin is failing its original mission, and institutional interest is going to make things worse. > > **Background** > > Satoshi Nakamoto was a financial revolutionary out to counter the fiat money presses that destroy a currency's value with inflation (looking at you Turkey and the U.S.) The method—create a currency with a fixed supply, mined liked gold to make it scarce, and digitally transferable anywhere in the world between any parties. > > **Lack of Stability** > > Bitcoin can't be used as a global currency to replace fiat and eliminate politicized money printing because it has to hold its value steady over time. > > Why? > > People work for dollars, euros, yen, or yuan because there is relative stability in their paychecks from week to week. Their food, rent/mortgage, clothing, energy costs are also relatively stable (inflation is the cost for using that particular currency, but it beats a 50% drop in value over the course of a few months, and most inflation around the world isn't as bad as Turkey or Venezuela.) > > Imagine being paid a flat 1BTC / year for a particular job. But you live in the U.S. and the value of that BTC just dropped over the course of the year by 50%. Your lease is fixed over 12 months. Your food costs are the same or maybe even higher. Not only do you still get hit with local inflation, your buying power just dropped by half. > > This is why over $155B\* have flowed into stable coins like USDT, USDC, BUSD, UST, and DAI) > > **Lack of Accountability** > > The relatively anonymous transfer of value between parties was supposed to be a positive aspect of bitcoin. Your money, so do what you want with it. The problem is, there are a lot of other people that also want anonymity — human traffickers, dangerous drug smugglers, crime syndicates, tax evaders. Sure they can also use USD (and most of them do), but they are also traceable if they enter the global financial system. > > Making it easier for criminals to evade authorities makes everyone less safe. And sure, no one likes to pay taxes, but consider the alternative. Roads, schools, social services, some hospitals, police and fire departments, they all rely on taxes. > > **Lack of security** > > Unlike gold, which is pretty much indestructible, Bitcoin holdings depend on keeping seed phrases secure. If there were a house fire a gold bar might melt, but it can be reformed. A hardware wallet will be destroyed and any seed phrases stored on paper will be gone. That's part of gold's appeal as a store of value. > > Also, were there to be an internet outage in any widespread way, Bitcoin is useless as a transaction currency (part of the appeal of physical paper money and metal coins.) While unlikely, this scenario speaks to the lack of overall security in Bitcoin as a means of exchange (it has other benefits like cryptographic security, but its lack of physicality poses problems with public perception, and practical uses.) > > **Acts like fiat, moves like fiat . . .** > > Bitcoin remains highly correlated to traditional finance markets (two recent readings were the highest they've been -- see link below) and doesn't exactly act as a hedge against inflation when it plummets in the face of, well, high inflation. > > What this shows is that big money is controlling Bitcoin (and by association the rest of crypto) by reacting in the same risk-off reaction when inflation flares up. > > It goes something like this: > > * When inflation rises, the Fed tightens money supply to slow things down. > * Big money flees from riskier assets like company stock (they likely won't be as profitable in a high inflation world) > * Stock prices drop \[and here's the problem\] > * Money does not flow INTO crypto as a hedge against this risk, it also flees. > > **Conclusion** > > Fighting fiat money printing excesses was never going to be easy, but as with most revolutions, unintended consequences often derail the original vision. > > For one, government policies can avert the worst of political impulses. That doesn't require a wholesale financial market revolution. > > U.S. inflation has also been remarkably low for well over two decades. It was a once in a century global pandemic that forced a massive print run of dollars. > > Bitcoin has also become just another a plaything for the rich, a commodity to be bought and sold for profit rather than the antidote to centralized money creation. And because even larger stacks of fiat are on the sidelines waiting to jump in, volatility is going to get even worse with big swings as fund managers chase and take profits. > > None of this means Bitcoin has no value in global finance. It just means it isn't going to serve the purpose as originally intended. > > \------------------ > > * For Bitcoin correlation to stocks see: [https://seekingalpha.com/news/3784018-how-does-bitcoin-correlate-with-us-dollar-stocks-other-asset-classes](https://seekingalpha.com/news/3784018-how-does-bitcoin-correlate-with-us-dollar-stocks-other-asset-classes) > * Stablecoin totals for the five mentioned above were calculated on 1/11/21 from CoinMarketCap - [https://coinmarketcap.com/](https://coinmarketcap.com/) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2lpo/top_10_bitcoin_conarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/xrmvqr/daily_general_discussion_september_30_2022_gmt0/).

SchrodingerCatCoin

Have you tried turning the USDT blockchain of and on?

ripple_mcgee

Does it even matter? USDC/USDT do a fine job anyhow

btcethmaxi

We’re backed I swear - USDT

Ill-Addition2024

I'm hodling BUSD and USDT. The biggest players, they have got some risks but 8% Apy seems amazing

CointestAdmin

#Bitcoin Con-Arguments Below is an argument written by bkcrypt0 which won 1st place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > # Bitcoin is failing its original mission, and institutional interest is going to make things worse. > > **Background** > > Satoshi Nakamoto was a financial revolutionary out to counter the fiat money presses that destroy a currency's value with inflation (looking at you Turkey and the U.S.) The method—create a currency with a fixed supply, mined liked gold to make it scarce, and digitally transferable anywhere in the world between any parties. > > **Lack of Stability** > > Bitcoin can't be used as a global currency to replace fiat and eliminate politicized money printing because it has to hold its value steady over time. > > Why? > > People work for dollars, euros, yen, or yuan because there is relative stability in their paychecks from week to week. Their food, rent/mortgage, clothing, energy costs are also relatively stable (inflation is the cost for using that particular currency, but it beats a 50% drop in value over the course of a few months, and most inflation around the world isn't as bad as Turkey or Venezuela.) > > Imagine being paid a flat 1BTC / year for a particular job. But you live in the U.S. and the value of that BTC just dropped over the course of the year by 50%. Your lease is fixed over 12 months. Your food costs are the same or maybe even higher. Not only do you still get hit with local inflation, your buying power just dropped by half. > > This is why over $155B\* have flowed into stable coins like USDT, USDC, BUSD, UST, and DAI) > > **Lack of Accountability** > > The relatively anonymous transfer of value between parties was supposed to be a positive aspect of bitcoin. Your money, so do what you want with it. The problem is, there are a lot of other people that also want anonymity — human traffickers, dangerous drug smugglers, crime syndicates, tax evaders. Sure they can also use USD (and most of them do), but they are also traceable if they enter the global financial system. > > Making it easier for criminals to evade authorities makes everyone less safe. And sure, no one likes to pay taxes, but consider the alternative. Roads, schools, social services, some hospitals, police and fire departments, they all rely on taxes. > > **Lack of security** > > Unlike gold, which is pretty much indestructible, Bitcoin holdings depend on keeping seed phrases secure. If there were a house fire a gold bar might melt, but it can be reformed. A hardware wallet will be destroyed and any seed phrases stored on paper will be gone. That's part of gold's appeal as a store of value. > > Also, were there to be an internet outage in any widespread way, Bitcoin is useless as a transaction currency (part of the appeal of physical paper money and metal coins.) While unlikely, this scenario speaks to the lack of overall security in Bitcoin as a means of exchange (it has other benefits like cryptographic security, but its lack of physicality poses problems with public perception, and practical uses.) > > **Acts like fiat, moves like fiat . . .** > > Bitcoin remains highly correlated to traditional finance markets (two recent readings were the highest they've been -- see link below) and doesn't exactly act as a hedge against inflation when it plummets in the face of, well, high inflation. > > What this shows is that big money is controlling Bitcoin (and by association the rest of crypto) by reacting in the same risk-off reaction when inflation flares up. > > It goes something like this: > > * When inflation rises, the Fed tightens money supply to slow things down. > * Big money flees from riskier assets like company stock (they likely won't be as profitable in a high inflation world) > * Stock prices drop \[and here's the problem\] > * Money does not flow INTO crypto as a hedge against this risk, it also flees. > > **Conclusion** > > Fighting fiat money printing excesses was never going to be easy, but as with most revolutions, unintended consequences often derail the original vision. > > For one, government policies can avert the worst of political impulses. That doesn't require a wholesale financial market revolution. > > U.S. inflation has also been remarkably low for well over two decades. It was a once in a century global pandemic that forced a massive print run of dollars. > > Bitcoin has also become just another a plaything for the rich, a commodity to be bought and sold for profit rather than the antidote to centralized money creation. And because even larger stacks of fiat are on the sidelines waiting to jump in, volatility is going to get even worse with big swings as fund managers chase and take profits. > > None of this means Bitcoin has no value in global finance. It just means it isn't going to serve the purpose as originally intended. > > \------------------ > > * For Bitcoin correlation to stocks see: [https://seekingalpha.com/news/3784018-how-does-bitcoin-correlate-with-us-dollar-stocks-other-asset-classes](https://seekingalpha.com/news/3784018-how-does-bitcoin-correlate-with-us-dollar-stocks-other-asset-classes) > * Stablecoin totals for the five mentioned above were calculated on 1/11/21 from CoinMarketCap - [https://coinmarketcap.com/](https://coinmarketcap.com/) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2lpo/top_10_bitcoin_conarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/xpwwdf/daily_general_discussion_september_28_2022_gmt0/).

AliaS_ZoN3

There only seems to be a total supply of 655mn USDT on the Polygon chain so it’s a bug in the app, love the enthusiasm and solidarity of this community in the comments though.

ThatBitchTsundere

It's just a glitch. The highest address is only 33 mil USDT no one even has 1B let alone 16B This sub doesn't know the basics hence the comments

Nooodles__

Hey, I heard this 16 billion USDT is a popular scam technique, transfer it to my wallet to protect yourself!

Somebody__Online

There is no wallet on the MATIC chain that holds anything near this amount of USDT. So this must be some display error. Would be fun though

Huijausta

> I hope USDT is legit I've got bad news for you...

Barnagain

There's another post on here from someone saying they were dropped exactly $16 billion of USDT. Seems a strange coincidence...or am I completely misunderstanding things?