LawrenceX

Thanks for taking the time to read! I'm glad you thought it interesting.

I agree with many of your conclusions, for example value creation IS occurring in the crypto space. Your examples of decentralized exchanges for example do solve a problem and increase efficiency.

And excellent - you got the brainteaser exactly! By destroying the dollar the no-arbitrage mechanism doesn't exist anymore and there is no more upwards pressure on the stablecoin to peg it to $1.

I have some other concerns with stablecoins backed by any asset correlated with crypto since it leaves the potential for market manipulation when controlled by a central party. I wrote about that in an earlier blog post too.

I'd be happy to chat about any of this more directly. My email is lawrence.xie90@gmail.com

This conflict between I call "technological enthusiasts" and "economic realists" is extremely prevalent in any discussion on cryptocurrencies.

I find this extremely fascinating and I think stems from both understanding things that the other side doesn't fully appreciate. I wrote about this more on my blog: https://lawrencexie.wordpress.com/2022/05/13/on-crypto-misco...