Topic: An Optimal Basket of Reliably Tethered Fiat Dollars (Read 164 times)

This post seems to be some where in the middle of a dialog, so some of it is unclear to me, but I'm interested in the topic.
I'm curious where to find data on where and how much of a coin is being bought (you mention S. Korea with Bitcoin). Where did you find this data?

As for being tethered to fiat currencies, well this topic gets large quickly, so maybe I'll just touch briefly on a couple of points.

1st: what is the point of tethering a crypto to fiat? I can see the benefits for the current controllers of fiats (gov't, central banks, etc.) but there is little benefit to the average citizen other than those attributable to electronic payment methods. I can see banks getting on board in order to usurp the crypto threat to their fiat currencies and widespread acceptance of a crypto (such as every debit card reader in retail stores) could get wide acceptance and usage by the general public, but it's essentially just a digital form pf the fiat currency with all the controls and problems that come with that. I would hope the crypto community would resist that.

I posted recently on the concept of a crypto tethered to a fiat (the US dollar) but adjusted for the real rate of inflation (Such as the rate that shadowstats reports) so that holding crypto would protect you from the devaluation of the fiat/ price inflation (appearing to be a profit compared to fiat). This could have widespread appeal that removes control of the crypto from both gov'ts, central banks, and speculators.  

Your thoughts?

My inflation coin post:
https://bitcointalksearch.org/topic/m.26059138

I’ve previously written about the concept of Cryptoexchangelandea which has helped me visualize a framework for how the community of internet crypto-exchanges might function in relation to each other. I’ve been meditating on this construct and especially in relation to Tether/USD and the possibility of other such fiat tethers.

I've been thinking about the BCH pump that is going on for the second time in weeks and how the majority of the volume is happening on the South Korean exchanges (I read not long ago South Korea has very strict capital controls). A quick check showed that these exchanges don’t have any fiat or international tethers etc. If South Korea does have strict capital controls then it probably is discouraged in some way for the citizens to use crypto as an exit point for capital (I don’t know where to find this info).

So where is this pump coming from? I wonder if people are bringing bitcoin into South Korea and using the exchanges to pump BCH. South Korean government might even allow this to happen (probably quietly) if it meant a net inflow of bitcoin/capital.

South Korean exchanges, in a sense, don’t perfectly reside in the realm of Cryptoexchangelandea and so it would be a perfect place to try and pump the price of BCH from the eyes of international observers. On a free trading market this plan wouldn’t work as the markets would arbitrage the false rallying caused by hype and nefarious efforts.
For this reason South Korean exchanges shouldn’t carry the same weight in the international prices of crypto coins and if they wish their prices to be taken seriously they need their exchanges to join the other exchanges on the market.

So there is a concept of a metric of the quality of an exchange's price that is related to the measure of its participation in Cryptoexchangelandea. In order to be fully participating a given exchange must be at least as liquid and accessible as any other exchange.

This seems quite measurable .

It has already been noted tethers can help exchanges function closer to the realm of Cryptoexchangelandea.

It might seem counter-intuitive to bitcoin’s ethos but it seems that governments are best suited to administer tethered fiat and if there was incentive for governments to do this (ie pressure by the game theory and/or the citizenry) then there might exist many tethered fiat currencies.

This would make creating a digital basket of all major currencies quite “programmable” which may be an unexpected result and observation than anyone previously considered. This new digital coin that could rely on the guardians of tether and the supplies of each digital fiat (remember there isn’t the same incentive to over or undersupply tether to Cryptoexchangelandea because it functions on a free market basis), would serve as a far more ideal standard or unit of account than is available today.