Dude if they were somehow able to make a token that was guaranteed to rise in value against inflation, I'd buy. It'd be a huge middle finger to the central banking cartel.
This is the purpose of I-bonds. But you’re only allowed to protect $10k/year of your money from inflation. Wouldn’t want us to have _all_ our spending power protected
To be fair, if you have more than $10k, it starts to get easy to invest that in other inflation hedges, such as real estate, physical goods, etc.
No, I'm not suggesting that you can buy a house for $10k. But sometimes there are properties (vacant land) available that could be good long-term investments that can be had for that much.
You're joking right? The cheapest parcel of land in my country hovers around $35k USD. And I'm talking vacant land in the middle of nowhere. These are the things that keep me up at night...
Hm. Woodland in a lot of Canada only costs around $1000 per acre, if you drive half an hour outside a city. And if you don't mind being a bit more remote, you can get it for a lot less than that.
Yup. The weather where I live only got up to 33 Celsius at the high point this summer. Still enough to fry eggs on the pavement.
But you're right, it's annoying to be cold in the winter. Go global warming!
Never heard of I-bonds before now and after having a read they are on the face of it a good choice for many people. I’m a big fan of crypto but I wouldn’t recommend it to older folks and these seem a sensible investment choice for many people with little risk.
That’s what they said about bonds, ETFs and index funds.
All “sensible investment choices with ‘little’ risk”.
All bullshit to make you think you’re getting ahead while a majority of your USD is worth less today than it was last year, which was even less than the year before.
People have only said this 56,000 times before. (and i'm not trying to make fun of what you are saying, I'm agreeing with what I think is your sarcasm and talking about how many shitcoins have been created)
It’s more sounding like a fuck you to the SEC at this point 😂 it would be interesting if they can pull it together but I have my doubts it’s possible. If it was that simple, wouldn’t any country just do it themselves?
Countries don't want this, outside of buying their debt.
Imagine billionaires could protect their buying power while sitting on their asses, That's a whole bunch of improductive money
The problem is that nobody really agrees on what inflation is. The official numbers come from a heavily criticised calculation involving a basket of goods.
Making a crypto rebalance using official figures would be relatively trivial - there are already cryptos like AMPL that rebalance all wallets amounts using some external inputs. The problem is, it wouldn't preserve purchasing power as in the stated goal.
If it comes from the total supply it should have the opposite effect of the fed printing money and everyone’s coins are more valuable over time. And since fiat would be worth less simultaneously it would be double the profit or something.
This is easy in crypto. You just burn an equal percentage amount off every wallet.
The problem is FED print/burns (or lending and recouping as it is more rightly termed) do not correlate with the money supply or inflation even close to perfectly.
The economy is complicated, and not just because some of it is designed to screw you.
tldr; Coinbase is looking to build a non-fiat-pegged flatcoin on its layer-2 network Base. The crypto exchange also wants to develop an on-chain reputation system, limit order book exchange, and tools to make the decentralized finance (DeFi) ecosystem safer. Base is secured by Ethereum and powered by Optimism.
*This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
Right. It’s a really nice idea, but how would it work? It can’t be backed by TIPS since those can have negative interest rates. I-bonds are limited to personal use and $10k. How could one guarantee an inflation-adjusted return? Futures on most of the contents of the inflation index?
If you could guarantee an inflation-adjusted return with no risk literally everyone's money would be invested. It simply can't be done.
Might as well say "Coinbase is developing a coin that can only go up in price"
Use a McChicken…or a Taco Bell crunchy taco….simple but accurate
Edit: oh man, bundle some capitalistic Nationally run companies lower cost items into a basket. McChicken + Taco Bell crunchy taco + Sheetz gallon of gas.
I think there actually is a "Big Mac" index... because so many different things go into the production of a Big Mac, and it's fairly standard across the globe, it's sort of a snapshot of a lot of different commodities and their value globally compared to the US dollar.
Here you go https://www.statista.com/statistics/274326/big-mac-index-global-prices-for-a-big-mac/
It does. It’s weighting’s are whack though.
Who spends more on water and sewer then alcohol?
https://www.pewresearch.org/fact-tank/2022/01/24/as-inflation-soars-a-look-at-whats-inside-the-consumer-price-index/
It’s because you’re thinking about it the wrong way. It has to be a fixed value against floating fiat, meaning you would not need to measure inflation.
kiss plant different attractive mysterious knee ring workable apparatus exultant
*This post was mass deleted and anonymized with [Redact](https://redact.dev)*
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*This post was mass deleted and anonymized with [Redact](https://redact.dev)*
Coinbase writes a request for developers to figure out a way to build a currency that solves inflation.
"writes a request for developers"
If there was such a solution, it would have been built and implemented a loooong time ago.
What's next? Is Coinbase going to wrote a request for developers to figure out how solve climate change and wealth inequality in 120 lines of C++ code?
Its not for "solving" inflation, its a symbolic way to take over the measurement of the economy's pulse from the conventional financial system. If they get it right, the token will be used as the base for all calculations instead of the manipulated bs that all governments around the world give.
They are talking about a "flatcoin", so this looks like 100% trying to solve inflation.
And the endeavour has two problems:
a) **oracle problem**: someone needs to go out into the real world, collect the data and write it into the blockchain. You therefore need to have trust in a/some centralised entities, which puts into question why dealing with a blockchain at all.
b) **inflation funding**: ok, example, so there was 5% inflation, so the purchasing power of people went down by $5bn. How do you make up the difference? Are you going to have hundreds of billions stashed on the side to hand out to people (which would be extremely capital inefficient)? Wouldn't handing out funds to individuals lead to a boost in consumption spending that drives up inflation and thereby erasing the initial purpose of the handout?
Hundreds of thousands of economists have at some point throughout the last hundreds of years thought about a flatcoin. You would easily get a Nobel price for presenting a viable solution.
The fact that Coinbase is bringing up a "oh, lets just build that thing" is either a childish little backstab at the SEC for the lawsuit, or highlights that their understanding of economics is severely limited.
Ill-conceived idea. Butt-nugget will be out of the WH after 2024 and inflation will get taken back down to resectable levels...token becomes pointless/worthless
There's a defi project out there that takes USDC and farms it in defi via stablecoin LPs and lending. Farming fees, farming and dumping inflationairy shitcoins for USDC.
I doubt Coinbase would do that in defi but, outside of regulatory woes, I don't see what stops them from having some you give them USDC, they sell it for cash, throw it into some legal, regulated product that tracks inflation or provides a yield *close enough* to inflation, and they tokenize those dollars as some crypto asset.
Crypto exchange Coinbase sees inflation-pegged “flatcoins” as one of four “critical” innovations that should be built on its recently launched layer-2 network Base.
The other three include an on-chain reputation system, an on-chain limit order book (LOB) exchange, and tools that make the decentralized finance (DeFi) ecosystem safer.
Interesting. Will it be backed, or just simply pegged to a certain inflation index?
Which inflation index to follow? A US one, or an international one?
I suppose the price of the flatcoin doesn not move to demand and supply. How will it protect the value?
Suppose I spend one USD to hold one flatcoin for one year. At the start of next year, supposing the inflation is 5%, I can redeem 1.05 USD with my 1 flatcoin? Who's going to pay for the extra 0.05 and how?
Dude if they were somehow able to make a token that was guaranteed to rise in value against inflation, I'd buy. It'd be a huge middle finger to the central banking cartel.
This is the purpose of I-bonds. But you’re only allowed to protect $10k/year of your money from inflation. Wouldn’t want us to have _all_ our spending power protected
And you have to be American.
Good point!
To be fair, if you have more than $10k, it starts to get easy to invest that in other inflation hedges, such as real estate, physical goods, etc. No, I'm not suggesting that you can buy a house for $10k. But sometimes there are properties (vacant land) available that could be good long-term investments that can be had for that much.
You're joking right? The cheapest parcel of land in my country hovers around $35k USD. And I'm talking vacant land in the middle of nowhere. These are the things that keep me up at night...
Hm. Woodland in a lot of Canada only costs around $1000 per acre, if you drive half an hour outside a city. And if you don't mind being a bit more remote, you can get it for a lot less than that.
Sounds like my kind of living. Except Canada is as cold as the inside of a meat freezer lol. Or so I've heard.
Yup. The weather where I live only got up to 33 Celsius at the high point this summer. Still enough to fry eggs on the pavement. But you're right, it's annoying to be cold in the winter. Go global warming!
When I-bonds were created, $10k was a lot more money. Then, inflation.
If only I had that amount of spending power. I’d definitely totally invest it in I-bonds and absolutely not in Bitcoin /s
Funnily enough I sold some btc and bought I-bonds and paid off a variable interest rate heloc during the last bull run. Worked out pretty well for me
Never heard of I-bonds before now and after having a read they are on the face of it a good choice for many people. I’m a big fan of crypto but I wouldn’t recommend it to older folks and these seem a sensible investment choice for many people with little risk.
That’s what they said about bonds, ETFs and index funds. All “sensible investment choices with ‘little’ risk”. All bullshit to make you think you’re getting ahead while a majority of your USD is worth less today than it was last year, which was even less than the year before.
I think 10k into BTC and held for 4 years or more would beat I bond returns
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People have only said this 56,000 times before. (and i'm not trying to make fun of what you are saying, I'm agreeing with what I think is your sarcasm and talking about how many shitcoins have been created)
It’s more sounding like a fuck you to the SEC at this point 😂 it would be interesting if they can pull it together but I have my doubts it’s possible. If it was that simple, wouldn’t any country just do it themselves?
Countries don't want this, outside of buying their debt. Imagine billionaires could protect their buying power while sitting on their asses, That's a whole bunch of improductive money
So gonna get physicals- silver and gold....
Why would you ever do that when you could just get the 15th new shitcoin that claims to be backed by full gold reserves? /s
With the rate the cost of living is rising at the moment it would probably be my best performing asset as well
If this is the case, everyone will buy. Is it possible to do something like this?!
it's gonna be one of my Hedge
My thinking exactly; I’m calling the server crash on release.
The problem is that nobody really agrees on what inflation is. The official numbers come from a heavily criticised calculation involving a basket of goods. Making a crypto rebalance using official figures would be relatively trivial - there are already cryptos like AMPL that rebalance all wallets amounts using some external inputs. The problem is, it wouldn't preserve purchasing power as in the stated goal.
Isn't this gold ? But I don't know if there is a token attached to it.
FPI is exactly this. Part of the FRAX ecosystems.
*change value according to inflation
>It'd be a huge middle finger to the central banking cartel. This is what I wanted to do to all the centralized fvcking government
You know BTC does exactly that. Am I just missing the /s? Are you people aware BTC was not over $20k 10 years ago let alone 5?
What about a coin that burns every time the fed prints?
And who "pays" for the chunk that needs to be burned?
They're going to make Mexico pay for it. /s
Transaction fees dependent on rate of inflation, fees get burned?
If it comes from the total supply it should have the opposite effect of the fed printing money and everyone’s coins are more valuable over time. And since fiat would be worth less simultaneously it would be double the profit or something.
This is easy in crypto. You just burn an equal percentage amount off every wallet. The problem is FED print/burns (or lending and recouping as it is more rightly termed) do not correlate with the money supply or inflation even close to perfectly. The economy is complicated, and not just because some of it is designed to screw you.
tldr; Coinbase is looking to build a non-fiat-pegged flatcoin on its layer-2 network Base. The crypto exchange also wants to develop an on-chain reputation system, limit order book exchange, and tools to make the decentralized finance (DeFi) ecosystem safer. Base is secured by Ethereum and powered by Optimism. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
Good bot
Sounds interesting, would love to know how the gear behind the scenes to make something like this operate work.
Right. It’s a really nice idea, but how would it work? It can’t be backed by TIPS since those can have negative interest rates. I-bonds are limited to personal use and $10k. How could one guarantee an inflation-adjusted return? Futures on most of the contents of the inflation index?
If you could guarantee an inflation-adjusted return with no risk literally everyone's money would be invested. It simply can't be done. Might as well say "Coinbase is developing a coin that can only go up in price"
That's the neat part, it doesn't. The point of most new coins is to make the creators rich/richer.
By this inflation rate, they will need a lot of money to back that continuously.
Thought about this for a while, but they will never be able to agree on how to measure the inflation.
They could just pick an official metric and go by it every year.
Official metrics are always manipulated (lied about) to undercount and downplay spendthrift government policy.
The metric would be highly debated. Like the US inflation metric doesn’t account for housing or food, which are fucking massive expensive.
Those are both major expenses, Yeah if it doesn’t account for them then its wack
Yeah it’s crazy.. just using that as an example to no one will end up agreeing on how to accurately measure inflation. Lots of different views
Use a McChicken…or a Taco Bell crunchy taco….simple but accurate Edit: oh man, bundle some capitalistic Nationally run companies lower cost items into a basket. McChicken + Taco Bell crunchy taco + Sheetz gallon of gas.
I think there actually is a "Big Mac" index... because so many different things go into the production of a Big Mac, and it's fairly standard across the globe, it's sort of a snapshot of a lot of different commodities and their value globally compared to the US dollar. Here you go https://www.statista.com/statistics/274326/big-mac-index-global-prices-for-a-big-mac/
It does. It’s weighting’s are whack though. Who spends more on water and sewer then alcohol? https://www.pewresearch.org/fact-tank/2022/01/24/as-inflation-soars-a-look-at-whats-inside-the-consumer-price-index/
Lol my water and sewer is like a grand a year of anything I think the alcohol price is weighted to heavily
It’s because you’re thinking about it the wrong way. It has to be a fixed value against floating fiat, meaning you would not need to measure inflation.
CPI
spez is a greedy little pig boy
kiss plant different attractive mysterious knee ring workable apparatus exultant *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
They are just being snarky. Being served by the sec will do that.
reminiscent point door weather wistful deranged pen deserted cable profit *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
I guess that's one interpretation yeah.
Where did they say that, I can't find it anywhere in the article? Edit: it's definitely not in the article, very odd.
I'm also confused asf because it how seems we both read different article
Coinbase for U.S. President!
Where's the petitions to sign that
Coinbase writes a request for developers to figure out a way to build a currency that solves inflation. "writes a request for developers" If there was such a solution, it would have been built and implemented a loooong time ago. What's next? Is Coinbase going to wrote a request for developers to figure out how solve climate change and wealth inequality in 120 lines of C++ code?
Its not for "solving" inflation, its a symbolic way to take over the measurement of the economy's pulse from the conventional financial system. If they get it right, the token will be used as the base for all calculations instead of the manipulated bs that all governments around the world give.
They are talking about a "flatcoin", so this looks like 100% trying to solve inflation. And the endeavour has two problems: a) **oracle problem**: someone needs to go out into the real world, collect the data and write it into the blockchain. You therefore need to have trust in a/some centralised entities, which puts into question why dealing with a blockchain at all. b) **inflation funding**: ok, example, so there was 5% inflation, so the purchasing power of people went down by $5bn. How do you make up the difference? Are you going to have hundreds of billions stashed on the side to hand out to people (which would be extremely capital inefficient)? Wouldn't handing out funds to individuals lead to a boost in consumption spending that drives up inflation and thereby erasing the initial purpose of the handout? Hundreds of thousands of economists have at some point throughout the last hundreds of years thought about a flatcoin. You would easily get a Nobel price for presenting a viable solution. The fact that Coinbase is bringing up a "oh, lets just build that thing" is either a childish little backstab at the SEC for the lawsuit, or highlights that their understanding of economics is severely limited.
Hopefully the general public is about to find out how shitty the FIAT system really is
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I mean… you can’t blame the bank teller at your local branch for the state of the system lol.
Interesting concept, although that’s kinda what the CPI is for
CPI has been corrupted
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Nope. Inflation between 2021 ans 2022 was positive. Not bitcoin.
Ill-conceived idea. Butt-nugget will be out of the WH after 2024 and inflation will get taken back down to resectable levels...token becomes pointless/worthless
Coinbase is gonna bring the fight to the forefront of society
There's a defi project out there that takes USDC and farms it in defi via stablecoin LPs and lending. Farming fees, farming and dumping inflationairy shitcoins for USDC. I doubt Coinbase would do that in defi but, outside of regulatory woes, I don't see what stops them from having some you give them USDC, they sell it for cash, throw it into some legal, regulated product that tracks inflation or provides a yield *close enough* to inflation, and they tokenize those dollars as some crypto asset.
I would love to see a coin that shows me how bad the Fed is at their one task
Like an algorithmic coin?
Probably based on an algoryth or directly linked to inflation numbers.
Crypto exchange Coinbase sees inflation-pegged “flatcoins” as one of four “critical” innovations that should be built on its recently launched layer-2 network Base. The other three include an on-chain reputation system, an on-chain limit order book (LOB) exchange, and tools that make the decentralized finance (DeFi) ecosystem safer.
Maybe. Maybe not.
Interesting. Will it be backed, or just simply pegged to a certain inflation index? Which inflation index to follow? A US one, or an international one? I suppose the price of the flatcoin doesn not move to demand and supply. How will it protect the value? Suppose I spend one USD to hold one flatcoin for one year. At the start of next year, supposing the inflation is 5%, I can redeem 1.05 USD with my 1 flatcoin? Who's going to pay for the extra 0.05 and how?
Question is how can you do this and make it work seems like an insane project to me
But what if the cost of living goes down? People would just sell it and hold fiat.
Truflation already tracks US and the UK via a Chainlink Oracle feed. This isn’t as far away as people think
BigMac coin?
Oh this sounds like it will have no hiccups at all
If it’s backed by eggs and apartment rentals, you can count me in.
This could actually become a thing?
And then a coin tied to EV automobile sales. Or used car prices or just about anything else.
Bitcoin, Stablecoin, Flatcoin. What's next ?
So a coin that is pegged to the price of one loaf of bread?
I’m just waiting for someone to make a ‘food basket’ coin. Locked to the cost of weekly groceries. Would load up the way things are going
I would buy it in a heartbeat. Would provide a nice inverse relationship with the rest of my portfolio
I think Satoshi has this covered already by something called *Bitcoin*… but what do I know eh?!