Ok I’ve never tried to look into TerraUSD or other stablecoins before.
So I have $100. I use that to buy $100 worth of Terra because it’s pegged to USD.
Then I can.. sell it for $100? What’s the point?
If they promise returns where are they supposed to come from? If my coins are pegged to USD how do they appreciate? Or is the idea they just give me more for holding?
But if the coins are pegged where do they get the money for the new coins they’re giving me?
If they don’t promise returns why would anyone invest in a stablecoin? If they give me more how is that not explicitly a pyramid scheme?
I can at least see the argument for BTC based on past appreciation. This I don’t get.
So I have $100. I use that to buy $100 worth of Terra because it’s pegged to USD.
Then I can.. sell it for $100? What’s the point?
If they promise returns where are they supposed to come from? If my coins are pegged to USD how do they appreciate? Or is the idea they just give me more for holding?
But if the coins are pegged where do they get the money for the new coins they’re giving me?
If they don’t promise returns why would anyone invest in a stablecoin? If they give me more how is that not explicitly a pyramid scheme?
I can at least see the argument for BTC based on past appreciation. This I don’t get.