THE ECONOMY

vimothy

yurp
the original sin of developers is the dream that somehow there's a technology that will make politics redundant. but no such technology exists
 

Clinamenic

Binary & Tweed
the original sin of developers is the dream that somehow there's a technology that will make politics redundant. but no such technology exists
But I do think blockchain-based voting gets rid of a lot of opportunity for corruption and rigging, and may even be more democratic if quadratic voting is used, depending on your beliefs.
 

Clinamenic

Binary & Tweed
Does being pegged to a banknote really mean they constitute the same/equivalent liability?
As far as I know, stablecoin issuers are not obligated to have a supply of dollars to back up the stablecoin supply. Some are actually collateralized by other, non-stable crypto assets (see DAI and makerDAO)
 

Clinamenic

Binary & Tweed
My understanding of the banknote being a liability is that, archaically, the bank is obligated to accept that note and return whatever was initially deposited, say gold.

Is the reasoning different, as to why a banknote is a liability?
 

vimothy

yurp
As far as I know, stablecoin issuers are not obligated to have a supply of dollars to back up the stablecoin supply. Some are actually collateralized by other, non-stable crypto assets (see DAI and makerDAO)
well yeah that's how this goes, even stablecoins are not really "stable" in any meaningful sense
 

vimothy

yurp
My understanding of the banknote being a liability is that, archaically, the bank is obligated to accept that note and return whatever was initially deposited, say gold.

Is the reasoning different, as to why a banknote is a liability?
suppose you are a corporation rather than a bank, and you issue a bond
 

vimothy

yurp
whats the difference between a bond issued by a bank and for eg a deposit account issued by the same bank?
 

Clinamenic

Binary & Tweed
Maybe temporary illiquidity of the bond, if there is some fixed maturity period, making it a long-term liability on behalf of the bank, whereas the deposit would seem to be a short-term liability.
 

Clinamenic

Binary & Tweed
so when a bank does it, no difference
But when a bank does it, as a bond recipient you are then also incurring all of the short term liabilities that bank has in the form of deposits, short-term liabilities that I’d imagine most companies don’t have, right?
 

vimothy

yurp
But when a bank does it, as a bond recipient you are then also incurring all of the short term liabilities that bank has in the form of deposits, short-term liabilities that I’d imagine most companies don’t have, right?
"money" is really just a v short term bond issued by a bank
 
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