https://futurism.com/goldman-sachs-launched-new-cryptocurrency/ "Soon, you may be able to use cryptocurrency to pay for anything from your morning coffee to happy hour drinks (or, you know, maybe some things that aren’t a beverage). And you could do it as easily as you use your credit card or Venmo today. Circle, a payment startup owned by Goldman Sachs, announced yesterday that it’s launching a new cryptocurrency called the Circle USD Coin. The new currency is basically a digital version of the dollar that you’ll be able to purchase by trading in, you know, real money. The USD Coin is the first cryptocurrency released by a major financial institution. While this sort of goes against the whole point of decentralized and distributed cryptocurrencies like bitcoin, Goldman Sachs and Circle hope to bring some stability to the cryptocurrency market, which has crashed and rebounded an exhausting number of times this year alone. Circle doesn’t want its USD Coin to be subject to the instability and inflation inherent to other unregulated cryptocurrencies, so it will tie the value of a coin to that of a US dollar, according to CNBC. Again, this pretty much goes against the whole point of cryptocurrencies, which were originally designed to present a transparent financial market free of regulation from federal government and the influence of big banks. And though it has seemed increasingly likely that regulation and corporate influence will play a bigger role in the space, some, including Silicon Valley investor Sam Altman, staunchly believe that any USD-based cryptocurrency must remain under distributed control. While other cryptocurrencies can be mined when users lend a part of their computer’s processing power to help maintain the updated ledger of all transactions, it seems like the only way to acquire new USD Coin — which will operate on the Ethereum platform for the foreseeable future — is to purchase them. So your extensive rig won’t help you get more USD Coin — looks like you’ll just have to buy it. With USD. Since you need to give Circle one (1) dollar every time you would like one (1) dollarcoin please, it seems like the currency will serve more as an open-source Venmo, where you can pay for things with a digital cryptocurrency instead of paying with a debit or credit card. Given Goldman Sachs’ recent investments in the crypto realm and announcement that the firm would trade Bitcoin on behalf of investors, it makes sense that the financial giant is trying to control the market as best it can. So for now, the USD Coin doesn’t seem to have any practical purpose beyond introducing a stable and maybe accessible cryptocurrency. For the foreseeable future, a dollar in your hand is about the same as a dollar on the USD Coin blockchain."
Maybe the wrong place to discuss, but I'm having a tough time figuring out how all these cryptos, each using different blockchains, each requiring a specific platform is any different than the current system. OK, less fee, and instantaneous conversion with no "settlement" time... good, it's about time! Beyond that, without access to ALL blockchains, an agreed upon (by both payer and payee) platform which includes a specific cryptocurrency MUST be used. How is that different than the "norm" of todays payment systems? ACH, SWIFT, VISA, MC, etc are middlemen. In the crypto world, the cryptocurrency itself and associated blockchain are the middlemen, with lesser fees, and speed. And not to be overlooked, controlled by some unknown, whether it be person(s), organization(s), institution(s), or government(s). It reminds me of IM... the aol network doesn't talk to the google network, doesn't talk to yahoo network, doesn't talk to private networks, etc etc. Software to consolidate access to multiple networks exists, but consolidation is not aggregation. A connection to each network, each cryptocurrency and each blockchain is necessary, just as separate network connections need to be maintained for IMing. Texting was a logical evolution. In one of the Star Trek movies, Vger was the all powerful master of the universe. Where is the all powerful, all knowing, keeper of ALL transactions blockchain? Without it, what is the point?
If one USD Coin is worth $1, how will Goldman make money from the USD Coin? Perhaps they will charge merchants a fee for usage, similar to Visa.
Such services(ex: Shapeshift, Changelly) emerged a few years ago to bridge different blockchains. You tell them how much of a given coin you want, the destination address and the coin you'll use in payment. It generates an address where you send the coins and they'll convert. Lend the USD, earn interest. Same business model than Bitfinex and their USD Tether coin.
Thank you @Tibster. Bridging the different blockchains is logical and clearly necessary. Thanks much for those names. But honestly, it adds another layer to my general crypto confusion. These bridges are no different than a paypal, venmo, and the likes, EXCEPT they are for digital assets (only). IOW, middlemen, not very different than the existing payment system, but with a bigger degree of trust needed by both payer and payee. Thanks again for your reply. Much appreciated.
That's comical, they hope to bring some stability to the very market they destabilized. Nothing to see here, move along.
Maybe some revise hendrix will clear the confusion,... There must be some kind of way outta here Said the joker to the thief There's too much crypto confusion I can't get no relief Wall St men, they drink my 'cryption Devman dig my code None were level on the mind Nobody up at his word Hey, hey No reason to get excited The thief he kindly spoke There are many here among us Who feel that life is but a joke But, uh, but you and I, we've been through that And this is not our fate So let us stop talkin' falsely 'bout bitcoin now The hour's getting late, hey All along the mining rigs Lambo Princes kept the view While all the women came and went Barefoot servants, too Outside in the cold distance An asic hashrate did growl Multi Blockchains were approaching And the wind began to howl
It was inspired by tiddlywinks’s mention of crypto confusion. Something I imagine many folks can relate to.
Thanks Sprout! But no offense, please, keep your day job!! As for my Crypto Confusion (theres a name for a song!), I have concluded that crypto coins are merely a modern day equivalent of trading cards. It is blockchain that holds the future, not the prospect of an alternative currency, or an alternative payment system. I have a Mox Jet ,Magic the Gathering trading card. I'd rather have a Wayne Gretzky. Go Knights!!!