I have never looked at Luna Terra but I consider stablecoins the riskiest of all crypto, since it basically depends on trusting the issuer to maintain 100% reserves or some obfuscated algorithms to do so. I see it fundamentally about introducing fractional reserve inflation through stable coins. I don’t see that ending well. Since the whole purpose of a stablecoin is to transact at face value, the most logical thing for a stablecoin issuer to do is issue tokens beyond their reserves and buy real coins like BTC with them, making it look like there are more dollars in crypto than there actually are.
Right now normal people don’t use crypto because it doesn’t solve any problems that they actually have and it is too complicated. Outside of internet nerds like ourselves, normal people don’t think about payments. They think about earning, saving, buying, borrowing, and investing, but payment methods are an afterthought. That’s why most of the trendier moves in the crypto space are about replicating these actions. Normal people don’t know where there computer saves their files, don’t know how to change their phone to dark mode, use Microsoft Edge with the default homepage, and so on.
Much like with 9/11 and the Patriot Act, Most people do not have the foresight about the totalitarian transition we are entering. Probably 50-70% of people either actively support the changes or consider them sincere attempts by incompetent leaders to fix a real crisis. Just like with 9/11, people who point out inconsistencies and implausibilities with the official narrative are branded as conspiracy theorists despite actually being right.
Fundamentally, if they can cancel you on a payment processor, your identity being linked to a public blockchain is hardly an improvement. If I, for example, donated to Nick Fuentes and the Feds decide he is now a terrorist, then they can really easily tell that I am supposedly funding terrorism. The mere ability for the transaction to not be censored is not very important because corporate entities can now target and deplatform me from their monopolistic platforms and the Feds could arrest me for sponsoring terrorism. Since the blockchain is immutable there is a ticking time bomb until one of my spends catches up to me. Meanwhile, big data companies like Meta and Google have full records of all my money coming in and out, my affiliations, and how much money I have. The Feds can literally map out the funding of every spurious character they put on their watchlist without leaving the office.
Sure there are ways around this, but they basically involve doing all the things that privacy coins have built in but manually. Rather than make it more complicated than it needs to be, I don’t see why we can’t just adopt privacy coins. We don’t need a full public records of everyone’s hands that an oz of gold has ever been in to understand its value or transact with it.
In the words of Mitch Hedberg, I don’t need a receipt for a donut.