Galoy and Kollider and others use derivatives to provide stabilized sats exchange rate. Stablesats for example tied to a fiat exchange rate. I hear from some I respect that this is really helpful in unbanked markets to meditate short term volatility.
I’d prefer such derivatives didn’t exist in the same way I’d prefer mosquitos didn’t exist. Unrealistic and how it is for me.
I understand that a stablecoin pegged to the dollar may be preferable to bitcoin in places like Venezuela or Argentina where salaries are small and many live paycheck to paycheck and can’t withstand short term volatility. But I’m thinking when bitcoin is the unit of account, the measuring stick, why would such derivatives even be around? Seems like more harm could be done, and not much of an upside.
Indeed. This is the first time in my life I’ve kept two units of account. It’s wild! Makes me have compassion for those that have been forced to in order to eat. In many places holding USD means stability even if for me I know my savings belong in sats not the credit union.
What I don’t grasp yet is what the failure mode is for stable sats for example.
The whole derivatives market even after trying and reading feels like a casino game I don’t really grok. But I’m a saver at heart not a gambler. If Bitcoin returns to me 4 years after putting it in the vault equivalent buying power to what I put in, that would be Baseline Success for me. Beyond that is what serves us all who want to build and not just HODL. Stewards of a better future, gambling no longer Required.
