The stable currency collateralized by legal tender is highly concentrated and must be linked to existing financial institutions and banks. That is, the funds of all investors who buy stablecoins need to use bank transfer records as evidence of deposits. If a stablecoin is operating well, then every money in and out of it is checkable and tBitcoin Price Forumraceable. If the funds are tricky or money laundered, the relevant accounts will not be made public, which has nothing to do with whether the transaction records are on the chain or not. The channel for investors to deposit funds is a regulated and traceable bank channel or other legal channels, and the asset chain is a unilateral operation of the stablecoin team. In the same way, the withdrawal of this type of stable currency also requires banking channels.
The Coin World Research Institute was established in August 2018. Its main research content includes technical research, industry analysis, application innovation, and model exploration in the blockchain field. We hope to build a research platform covering the entire blockchain industry chain, provide a solid theoretical foundation and trend judgments for people in the blockchain industry, and promote the development of the entire blockchain industry.
The author was once responsible for the creation of a digital currency exchange in the United States. Due to work reasons, I have dealt with relevant US regulatory agencies many times, and I know that the US regulatory authorities will never let digital currency be left alone. At the federal management level, digital currencies are mainly performed by four agencies. SEC The US Securities Regulatory Commission mainly supervises the issuance of ICO and STO, whether it is an illegal fund-raising financial fraud. The CFTC Commodity Futures Trading Commission mainly manages from market manipulation. FinCEN US Financial Crime Enforcement Team, which belongs to the Ministry of Treasury, mainly supervises anti-money laundering. The Office of Foreign Assets Management of OFAC, also under the Ministry of Finance, is an agency that enforces economic and trade bans and sanctions on overseas countries and companies. The ban on US companies and ZTE’s business was issued by this agency.
In theory, maintaining the link between currency and actual value is simple. However, in the real world, it is almost impossible to accurately measure the purchasing power of a currency. This is why we define stability as the price that remains constant relative to other commodities or currencies with stable value. Before discussing different stable digital currency projects, let's take a look at their availability.
The credit of GUSD is endorsed by the US government and can be approximately equal to the US dollar. With GUSD, you don't need the help of banks and third-party payment companies. You only need to have an Ethereum wallet, which is really convenient. Although obtaining GUSD from the source requires complicated KYC, I estimate that except for Americans, it is possible to pass such strict KYC. But because of the existence of encrypted digital currency over-the-counter transactions, and encrypted digital currency exchanges are also destined to list GUSD. So I judged that there are not too many obstacles to profiting GUSD, and it is estimated that it can be obtained only by paying a small fee.
dYdX, a decentralized financial derivatives agreement, uses smart contracts to rewrite and reimplement the trading rules of financial derivatives. The project was established in 2017 and has completed two rounds of financing so far,Bitcoin Price Forum with a total of 12 million US dollars, led by AndreessenHorowitz, Polychain, and a16zcrypto.
BitOoda believes that the information obtained from its investigation and conversation shows that the United States, Canada and Iceland account for most of the production capacity, but the production capacity in the "rest of the world" accounts for only a small part. In the discussion with the miners, BitOoda asked about their own production capacity, how many other miners they know in the market, and how much they think the total production capacity of the area is. BitOoda believes this is a useful way to estimate the overall geographic distribution of mining capacity in a certain area.
The producers of A and the producers of B are the same group of people, and this group of people is divided into three categories. The first category is for people who are killed but not sold. The second category is for people who choose to keep a part and sell a part. The three types are all sold out after they are selected. For simple calculation, the proportion of resources of the three types of people each accounts for 1/3.
In 1971, U.S. banks did not have enough gold reserves to support the U.S. dollar system. The U.S. ended the monetary system anchoring gold and entered the era of the legal currency system. The fiat currency system led to an increase in US dollar currency debt and inflation, and triggered the economic crisis of 1980-1982. The fiat currency credit system also produced capital bubbles in 2000 (Internet bubble), 2008 (real estate bubble), and 2019 (before and after COVID-19).
The various interoperability schemes not discussed in this article may also bring the common success of Ethereum and Bitcoin as currencies. For example, one possibility is to use Bitcoin as the natural base currency, use Ethereum to provide other levels of currency functions, and then use trust minimization schemes such as tBTC and renBTC to utilize Bitcoin.