zlacker

>>shscs9+(OP)
This is intersting.

Occasionally in YC founder circles a new founder will raise a bunch of money and then ask something like "What's the best way to invest all the money our company just raised?"

The responses are always along the lines of "Your startup is already risky. Don't innovate in areas of your business where the status quo is known to work. Innovate your product + technology, don't be innovative with your company's finances, HR, etc"

That advice always stuck with me. It just makes a lot of sense to do things in the most boring way possible, except where it matters (your competitive advantage <-- that's where you innovate, that's where you set yourself apart)

Running a startup is distracting enough. Doing things non-standard just adds to the list of distractions that you don't need as a founder.

>>cj+ul
YC, like most incubators, has always encouraged their companies to use products and services from other companies in their portfolio.

The simplest explanation is that this is a mostly symbolic move: They want to show that the stable coin and crypto companies they invest in are actually trusted by YC. It starts to look hypocritical if an investor is funding crypto companies and praising them as important breakthroughs, but not actually using them where it’s important.

>>Aurorn+iq1
But what advantages do stablecoins have?

>>7e+Hw1
Faster and cheaper transactions that don't get locked up by the whims of a bureaucracy. They continue to operate on non-business days.

>>toomim+gA1
That’s also a downside: When your funds can be transferred away by anyone who happens to acquire the key without triggering any fraud prevention or additional verification checks, losing your entire bank account at 4AM Sunday morning becomes much easier.

>>Aurorn+kM1
This is why people who happen to own significant amount of crypto typically get hardware wallets

>>tucnak+wT1
Yes, let's go back to hiding cash and gold under our beds. Maybe buy a machine gun so you can defend it from home intruders.

>>aurare+Ra2
> Yes, let's go back to hiding [...] gold under our beds

The people that did exactly that never had to worry about (hyper)inflation...

>>RobotT+If2
The currency is never the only asset or unit of trade in an economy. As long as value and wealth were being created somewhere, inflation can exist.

Gold is interesting because more of it was being mined and produced all the time. There wasn’t even a finite amount of gold.

Thinking that a gold standard means no inflation (or in practical terms, deflation as the population grows) is a modern fantasy.