Let’s take the current world’s fourth-ranked cryptocurrency with a market value of up to 70 billion U.S. dollars. The USDT currency issued by Tether is an example. Users buy with legal tender, and the issuer of the stable currency “states” that it will maintain an equivalent value of 1:1 The fiat currency reserve means that the US dollars that I issue stablecoins in exchange for will be stored in the bank and will not be used secretly. The question is who will guarantee?
This approach is difficult to guarantee that there will be no suspicion of players and referees. For example, Tether has been questioned for not having 100% reserves, and its sister company Bitfinex was even accused of illegal misappropriation of Tether funds last year. Tens of billions of white money is stored in the bank, and the seal passbook is in the hands of the issuer. Is it really not tempted?
The point is, what financial innovation can be done with a single transaction server? It is also “fully digitized and decentralized, and can be used to pay any object in the world at any time and place. It can be said that it is a dollar that is better than the dollar.” This is of course easy to use, as long as you use a mobile application (APP) to send money, you can exchange it with any cryptocurrency. Of course, it only takes a few seconds to settle cross-border payments like Ripple. More importantly, there is no record of hype money laundering. Sure enough, it is a US dollar that is better than the US dollar! Is this “financial innovation” or “financial fraud”?
To put it bluntly, the principle is that a company wrote a program and issued tens of billions of stable coins worth tens of billions of dollars out of nothing ; printing counterfeit banknotes also requires a printing machine, which even saves a printing machine. I often joke This is called “capitalless finance.” More importantly, the printing of counterfeit banknotes is illegal and can be caught, and the issuance of “stable currency” cannot be managed, so the competent authority has no choice but to use it, because it is not issued in U.S. dollars or legal currency, and can only be called in the sense. “Tokens”; when I went back and looked at the financial regulations, I really couldn’t find the law for them to “print tokens illegally”. In the end, they could only open one eye and close one eye to let them continue to play, otherwise they could only fix the law. Plug this loophole.
It’s no wonder that since the rise of USDT, there have been more than 200 stable currencies. It turns out that printing counterfeit currency is so easy, without having to buy a printing machine, it is considered polite to have 200 types! Have you ever felt that you don’t have to work hard to make money, just issue stablecoins? If this trend is allowed to continue, one-day parents will see their children loitering at home and giving out money, and in turn, mocking their parents for working hard every day to make money to support the family is stupid.
Most of the cryptocurrencies issued using Ethereum smart contracts are not decentralized!
It is worth noting that the method of generating stablecoins is not considered “decentralization.” Many people mistakenly believe that the use of Ethereum’s smart contracts meets the conditions of decentralization. In fact, Ethereum only uses the blockchain to ensure intelligence. The contracts are “non-tamperable”, but they are all controlled by a single organization or enterprise and do not have the “decentralization” characteristics of the blockchain. This is different from Bitcoin or Ethereum using blockchain technology, which uses computer algorithms to distribute accounts on the computers of many miners around the world, and there is no single organization or corporate control.
Therefore, as mentioned above, there are more than 6,900 kinds of existing cryptocurrencies. Most of them are issued using Ethereum smart contracts and controlled by a single organization or enterprise. These are not considered to be decentralized. Therefore, stablecoins or cryptocurrencies are said to be It is “decentralized” so it is so valuable, it is just a way to bluff laymen! I have released it too, so don’t come to bluff me! Let’s look back at what Palmer, the founder of Dogecoin, said. Is it the same as me?