Follow

In a bear markets "stable" coins are suffer. NuBits keeps falling away from the supposed peg. Sooner or later all the others will follow

medium.com/@FedericoTenga/stab

@fed

Excellent.

Peg asymmetries are fascinating. A couple of examples you didn't mention: the time George Soros became "the man who broke the Bank of England" in the ERM fiasco of 1992, and a particularly interesting recent example: the SNB pegging to attempt to *limit* the value of the CHF against the EUR, which was in, I want to say 2013(?). Amazingly the peg broke in the direction that theoretically it never needs to (CHF strengthening) because they can always print more, but they didn't.

@waxwing Yeah the Swiss one is quite fascinating indeed (2015 I think), especially because it was a direct consequence of a referendum that limited the amount of foreign currency the central bank could hold. Basically the Swiss voted to preserve the CHF as a safe heaven, while the ECB started with the quantitative easing

@fed I think the (spectacular) break was in 2015. I've just checked and it started in 2011, quite a bit earlier than I remembered.

Believe it was sparked because of the Euro crisis around that time.

Hong Kong is an interesting example. Kept in a band (something like 7.75-8, I forget exactly) to the USD for decades now.

@fed What is beyond amusing is how a is pegged to a depreciating inflationary currency. Like building houses on sand, there's no reasonable outcome - just total failure.

Sign in to participate in the conversation
Bitcoin Mastodon

Bitcoin Maston Instance