we're really going to trade all this to minimize volatility ? https://chatgpt.com/share/67fc2724-c674-8011-9b70-975ca9a22e67
Discussion
Jack dime si lees esto
āVolatilityā
Someone please post the text. Op should have
You said:
play out all the risks of stable coin domination vs bitcoin
ChatGPT said:
The domination of stablecoins over Bitcoin poses risks and tradeoffs across financial, political, technological, and philosophical domains. Below is a breakdown of these risksāfirst from the lens of stablecoin domination, then comparison with Bitcoin, and finally deep implications across axes of power, control, and human sovereignty.
š§Ø RISKS OF STABLECOIN DOMINATION
1. Centralization & Censorship
Stablecoins are often centrally issued, e.g., USDC by Circle, USDT by Tether.
The issuer can freeze, blacklist, or reverse transactions.
Regulators or governments can pressure issuers to comply with surveillance or censorship mandates.
ā Risk:
Loss of financial neutrality.
Stablecoins become programmable surveillance tools.
Users can be debanked or frozen based on arbitrary or political reasons.
2. Dependency on Fiat Systems
Stablecoins are pegged to fiat (mostly USD), inheriting the weaknesses of those currencies.
They require trust in U.S. monetary and fiscal policy, which is inflationary and politically volatile.
ā Risk:
No escape hatch from fiat devaluation.
Economic dependence on U.S. debt and interest rate policy persists, even globally.
3. Custodial Fragility
Collateral is held in centralized banks or opaque commercial paper.
This introduces counterparty risk, especially during crises.
ā Risk:
Stablecoins can collapse or de-peg if reserves are mismanaged or inaccessible.
Users are exposed to banking system failure, the very system crypto was built to exit.
4. False Sense of Stability
The "stability" of stablecoins is tied to a deeply unstable system: debt-based fiat currencies.
Appears low-volatility, but masks systemic risks.
ā Risk:
Encourages complacency.
May delay the transition to truly decentralized, scarce monetary assets like Bitcoin.
5. Regulatory Capture
Stablecoin issuers are increasingly partnering with regulators and central banks.
This makes them natural on-ramps for CBDCs (Central Bank Digital Currencies).
ā Risk:
Trojan horse for state-controlled programmable money.
Could lead to China-style social credit + monetary control systems in the West.
š COMPARISON WITH BITCOIN
Attribute Stablecoins Bitcoin
Volatility Low High
Censorship Resistance Low (centralized issuers) High (permissionless network)
Inflation Risk High (USD-pegged) None (fixed supply: 21M)
Final Settlement No (IOU redeemable) Yes (self-custodied asset)
Transparency Opaque reserves Fully auditable ledger
Counterparty Risk High None (if self-custodied)
Regulation Risk Very high Moderate (but resilient)
Store of Value Weak Strong (scarcity, long-term upside)
ā ļø LONG-TERM CIVILIZATIONAL RISKS
š§ Cognitive & Behavioral Effects
Stablecoins preserve short-term thinking tied to fiat incentives.
Bitcoin encourages long-term, low-time preference behavior.
ā Outcome:
One path trains us to rent the future.
The other trains us to build and own it.
š§¬ Sovereignty & Freedom
Stablecoins can be used to enforce:
Geopolitical dominance (e.g., dollar hegemony)
Transaction censorship
Behavioral conditioning via programmable money
Bitcoin is immune to these, enabling:
Sovereign wealth protection
Permissionless innovation
Censorship-resistant donations, protest, escape routes
š Global South Impacts
Stablecoins offer short-term escape from local currency collapse, but reinforce U.S. dollar dependency.
Bitcoin provides a long-term escape hatch from all collapsing fiat systems.
ā Risk:
Stablecoins become digital colonizationāeasy to adopt, hard to escape.
š§© CONCLUSION
Stablecoins are useful but dangerous if they dominate. They repackage fiat fragility in crypto form, offering short-term convenience but long-term control.
Bitcoin is volatile, yesābut itās the only apolitical, incorruptible, borderless base-layer monetary system humanity has ever had.
If stablecoins dominate:
Financial freedom dies quietly.
The dream of an open, decentralized world is smothered by convenience and compliance.
If Bitcoin prevails:
Sovereignty becomes a default right, not a privilege.
The monetary future becomes a shared protocol, not a leveraged empire.
Would you like a visual table of these tradeoffs or a future scenario comparison?
Indeed.
Water follows the easiest path.
Yeah and Stablecoin Coffee Co. just doesn't have a ring to it either.
š«š¤ā
Bitcoin is a new store of value. Stable-coins are the next leg of fiat. Itās not a competition or even a comparison.
I'm impressed that ChatGPT said stablecoins are repackaged fiat fragility.
It got progressively more based as it went, that ending was wild
Appears low-volatility, but masks systemic risks.
We are looking for an investor who can lend 50,000 US dollars to our holding.
We are going to establish a furniture manufacturing facility, but we are short of 50,000 US dollars to complete our budget. Therefore, we would like to borrow 50,000 US dollars from you.
In today's industry, the furniture business ensures fast sales and also provides great profit opportunities.
We will open a furniture production facility in Baku, Azerbaijan, with the 50,000 dollars you will give.
You will lend 50,000 US dollars to our holding. When the date 22.12.2025 comes, I will return your money as 500,000 US dollars.
You will lend 50,000 US dollars to our holding company. When 22.12.2025 comes, I will give you your money back as 500,000 US dollars.
You will have made 10 times profit in 9 months
When 22.12.2025 comes, you will get your money back as 500,000 US dollars
To learn how you can lend 50,000 US dollars to our holding and to get detailed information, send a message to my whatsapp number or telegram username below and I will give detailed information.
For detailed information, send a message to my WhatsApp number or Telegram username below and I will give you detailed information.
If you want to lend 50,000 US dollars to our holding, send a message to my whatsapp number or telegram username below.
You can contact us by sending a message to my WhatsApp number or Telegram username below.
My WhatsApp phone number:
+212 619-202847
My telegram username:
@adenholding
+212 is Morocco, not Azerbaijan. Take your scam elsewhere.
So a ācoinā is stable when itās pegged to fiat. š
Next joke pleaseā¦
Stablecoins vs Bitcoin: The Real Choice
Stablecoins offer convenienceābut at a cost. They're still tied to the same broken fiat system, vulnerable to censorship and inflation. Bitcoin, on the other hand, is permissionless, #scarce, and #sovereign. One path leads to control and surveillance. The other, to #freedom and ownership. In the end, #stablecoins might feel saferābut #Bitcoin is the only exit.
#BullishBounty
Bitcoin is nature herself.
Life got kinda crazy after colonizing and plundering two continents, melting down empires in world wars with flying machines and dropping world ending bombs
Bitcoin is the only apolitical, incorruptible, borderless base-layer monetary system humanity has ever had.
Bitcoin is money, everything else is a promise
Itās political until itās adopted by those using it for political purposes, then itās not.
Humanity have to embrace it soon and sincerely.
Meanwhile, every single measurable metric says Cardano is more BTC than BTC.
āLeveraged Empireā crazy that is articulated by AI, succinct
Can you share a link for the following prompt:
play out all the risks of bitcoin domination and bitcoin maximalism
Great point
In 2019, I said the same thing- I got deplatformed for it
I have a pile of research to show for it
how the tables turn
Thanks to Satoshi.
Everyone fails the marshmallow test
Weāre really going to pretend like Jack is not a hottie ? š©āā¤ļøāšØ
Shitcoins & stablecoins are like centralized social mediaā¦ used & abused until political instability emerges, then they become mediums of control.
Bitcoin and nostr must exist so that during these times, options remain. Bulletproof money and speech is most useful when bullets are flying, thatās the point of being bulletproof afterall.
But the cost of nostr & bitcoin is quite great, pushing people to cheaper centralized options. Perfection aināt cheap. Reducing costs or increasing profits for node operators is key.
Jack if you let me pet your beard it would minimize my volatility towards the world haha š¤£
The regulatory embrace and fast tracking of āstable coinsā says everything.
stop being like this jack
I donāt see why you canāt take BTC and hedge it with BTC forwards/futures to minimize volatility given a spending need at a certain date in time. No need for any other currency to be involved
A certain level of volatility is good anyways
ex-skeptic in stablecoins, but they:
1. have product market fit (governments need to sell debt, people in tough situations want improved short term savings vehicles)
2. can onboard people to key management practices
3. give governments another attempt at holding financial institutions accountable (bail ins, not bail outs)
4. create liquidity bridges to bitcoin
5. the free market will correctly answer your question for you but over time
6. hopefully stablecoin issuers run their own publicly verifiable databases rather than issuing on some unnecessary poorly designed third party blockchain (less abstractions, more transparency)
7. bitcoin payments will hopefully still run in parallel to stablecoins for those that correctly identify stablecoin risks
While I agree with this, stablecoins are a necessary step on the path to Bitcoin. The alternative is going straight from CBDCs to Bitcoin ā and once youāre in, itās very hard to get out.
Oof I love you for this. Thank you, Jack. Needed this laid out simply just like that.
Also, no we are not. Pretty sure it's not the intention you are holding.
i don't pay open ai iiiiii
I am not giving you my sats. You are literally have the most bitcoin and people keep giving you tips .
The wealth should go from top to bottom and not from bottom to top .
He's not Satoshi.
Wealth should go where itās most useful, not the bottom. The bottom gets more wealth after we do step 1. We canāt go right to step 2. Itās been tried š
Hereās my 2 sats Jack
I give Jack tips because Iām trusting that he will be a good steward of it- this is one value that transparent blockchains provide
As much as I donāt agree with everything him and Odell say, personally, I trust that the sats will flow back into the open source community and not to bad actorsā¦ I trust they have insights that I, at the bottom, lack
Thatās what circular economies were designed to do- Satoshi believed in pools of liquidity
only the retarded and folks with the corporate interests want a stablecoin dominated monetary ecosystem.
How do we deal with the deflationary nature of bitcoin that incentives holding on to bitcoin, because it will be worth more in the future? How do we over come the low velocity this creates?
Simply create things of high quality that people will want and demand to be paid in sats.
That doesnāt address the low velocity due to the value of Bitcoin increasing.
If you have something someone wants for 10,000 sats, but it will only cost 7,500 sats in the future, that someone will wait. This behavior can be seen anytime deflation has occurred in a currency.
Bitcoin has deflation built into the design making it particularly vulnerable to deflation. Bitcoin is an excellent commodity like gold, but its ability to function as a currency is still in question particularly because of its velocity.
Though bitcoin could theoretically be high velocity people tend to hold bitcoin vs spending bitcoin, because it will be worth more in the future.
To be clear deflation is when something increases in value over time. Example of this are stocks, bonds, art, Bitcoin, etc.
P.S. I do use sats and own a small amount of bitcoin, so I am not questioning its functionality or value, but its velocity.
No
Exactly. Thatās the trade-off being made ā swapping sovereignty, privacy, and long-term economic resilienceā¦ just to avoid short-term price swings.
Volatility is uncomfortable, yes. But it's a symptom of something early, free, and uncontrolled. Weāre being asked to give up:
Immutable property rights
Global permissionless access
Freedom from inflation and centralized tampering
The ability to exit broken monetary regimes
A tool that could actually realign civilization toward long-term thinking
ā¦just so people can hold a coin that doesnāt jiggle Ā±2% in a week.
Itās kind of wild when you zoom out. Weāre at a moment in history where we could choose a radically fair, decentralized base money ā and instead, weāre considering trading that away for glorified digital dollars with tracking built in.
Volatility is the price of early-stage freedom.
You can smooth volatility with time, tools, and adoption.
But you canāt code decentralization back in once itās been stripped away.
So yeah, if youāre feeling like this trade feels lopsidedā¦ youāre not alone.
Want to dive deeper into where this could go ā like a "two futures" kind of thing: Stablecoin World vs Bitcoin World?
No !!
"They repackage fiat fragility in crypto form"
it's so obvious... it's bizarre to me that people are pushing this.
honestly, no, we are probably going to use it all as a trojan horse to rebuild payment rails around lightning and then rug fiat for good:
nostr:naddr1qvzqqqr4gupzpqnwn7y4hqdtgxj9ygngkfy7drgze2qkpr002c4yj08wxhlut36eqqxnzde5xs6rjv3kxcer2vp3lc8ac9
Sorry for hitting on you so much nostr:nprofile1qqsgydql3q4ka27d9wnlrmus4tvkrnc8ftc4h8h5fgyln54gl0a7dgspzemhxue69uhhyetvv9ujumn0wvh8xmmrd9skcqg5waehxw309aex2mrp0yhxgctdw4eju6t0s4rc0a Iām ridiculous lol š
Outcome:
- One path trains us to rent the future.
- The other trains us to build and own it.
I tried the inverse of that query and asked chatgpt: play out all the risks of Bitcoin domination vs stable coins.
The answer was interesting.
Try the inverse of that query and ask chatgpt: play out all the risks of Bitcoin domination vs stable coins.
Volatility causes Vitality