The Bitcoin Dilemma - To Stay Decentralized or Not
Bitcoin and other cryptocurrencies are known for their decentralized architecture, and that's what made them famous in the first place. That might not remain the case for long. In real world scenario, the most powerful are those who have access to and control over information. Armed with the right information, one can easily control the economic and political outcomes in the world. The concept of decentralized currency lies in not empowering a single or a group of entities to exercise control over the flow of money and in turn the economy. The same holds good with Bitcoin too. As the....
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As the debate over the trustworthiness of stablecoins intensifies due to Terra, one expert thinks builders should push for the coins to be decentralized with a clear use case. In light of recent market effects due to the collapse of the Terra USD (UST) stablecoin, several questions should be answered about what makes a stablecoin usable as the crypto market expands.Co-founder of crypto financial service provider VegaX Holdings Sang Lee favors decentralized stablecoins over their centralized counterparts but thinks they must be coins that people can trust, which poses a dilemma for the....
Travis Patron is the founder of Diginomics, a bitcoin news organization where professionals can enroll in the Bitcoin Economics Course. Here he explains why the stateless nature of bitcoin holds the potential to solve an age-old international monetary flaw. Although the United States Federal Reserve Note carries with it many advantages for conducting commerce and serving as a world reserve currency, its makeup is not void of imperfections. One of the main shortcomings of the US dollar is the Triffin dilemma, a problem which arises when countries must manage both short term domestic and....
The RAI stablecoin will attempt to bring stability to DeFi markets with the long-term goal of becoming a stable global reserve asset not tied to any nation’s currency. New Ethereum-backed stablecoin RAI hopes to be the savior of the DeFi sector by providing a truly decentralized stablecoin alternative. Developed by blockchain startup Reflexer Labs, RAI is not pegged to any fiat currency and its monetary policy is managed by an on-chain, autonomous controller. It's a fork of Maker's DAI. RAI co-founder Ameen Soleimani explained:“RAI is an asset backed only by ETH, governance-minimized, and....
It is Q2 2021, and the true era of decentralized finance has now begun. It is safe to say that the rough terrain has been chartered and that DeFi is here to stay. With a solid foundation formed, the time has come for serious investors to enter the realm of decentralized finance. And with them […]
As the U.S. sees wealth disparity increase due to the dollar's status as a world reserve currency, Bitcoin offers an alternative.