Colton Robtoy
Sep 8, 2018 · 2 min read

> 1) claim price-volatility is the primary roadblock from BTC reaching the mainstream, and 2) predict that a price-stable coin will (finally!) be used in everyday life.

Haha yup. And that they all have the solution

> A stable-coin offers subpar investment returns, and therefore derives most of its value from its useability.

100%

> I find that the most popular arguments for decentralized currencies are not applicable to mainstream use cases.

Agreed

> An example of this is e-commerce discounts, which is the centerpiece of Terra’s early go-to-market strategy

I love this.

> I often get asked, what happens when the economy reaches steady state and starts growing more slowly, say, 2% like the US economy?

The question you should be worried about is: What happens when the Terra Money Economy starts to exhibit Negative Growth

The answer is: Terra Money will cease to exist

> Users who contribute to the growth & adoption of decentralized currency can expect to reap its gains instead of seeing it wasted in political deadweight loss.

Yeah unfortunately the incentives are that way for Stablecoins that are both Good & Bad

> I believe that driving adoption will be the most important challenge and differentiating factor.

I buy that

> Financial incentives through seigniorage discounts

Wonder how big those discounts will be

> making the mint busy in rewarding consumers for purchases.

That’s interesting

> positive growth feedback loops are indicative of value skews that occur when economies with zero capital controls compete with different prices, and incidentally, how the United States gained its economic hegemony post WW2.

We were a large supplier for both World Wars, and ended up with 66% of the World’s Gold- a pretty nice Deal!

> basically every ICO project claiming to decentralize the world can be re-written on top of a price-stable currency.

Are you on ETH? Are you on your own Blockchain?

> we can both offer stability as a service to many dApp economies

That’s Great

> credit simply does not exist for a vast majority of people in the world

True

> Alipay has successfully become a closed economy, with internal cash flows/inflows vastly exceeding cash outflows from the system.

Lmao seriously? Every large business in China is just an arm of the Chinese Government. Alipay (aka the Chinese Government) has become successful in China? Wowie, what a surprise!

> Likewise, at scale, we will be able to see organizations being built that raise funds, do payroll, and keep accounting books in Terra.

That could happen.

Great job.