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Join date : 2022-10-27
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Cons of USD coin  Empty Cons of USD coin

Mon Nov 21, 2022 5:27 pm

• Although the cost of transferring USD coin may be less than if it were fiat, when the Ethereum network is congested it can get very expensive to transfer even a small amount

• Although USD coin can be used in some DeFi apps and games, there are very few day-to-day uses for USDC – there are almost no shops, restaurants or companies that will accept it in everyday circumstances, reducing its usability

• Staking USDC can be risky compared to holding fiat in a bank – banks have FDIC insurance and your money is almost guaranteed to be safe, albeit with a lower interest rate, but there are many examples of DeFi apps that have been hacked with funds drained so your money is in more danger

• Another issue that may put people off from the USD coin is that it is centralised – it is governed by Circle, so the reserves cannot be verified, unlike decentralised options like DAI and SameUSD

• Although transferring USD coins is very fast, certain fiat services -most notably PayPal – have even shorter transfer times, sometimes 1 second or less

• Even though crypto is getting more mainstream with simpler apps, it can be difficult for many to understand how to use and stake this coin to achieve its full potential, and if it is held in private wallets and the seed key is forgotten there is nothing anyone can do to retrieve the funds, unlike apps like PayPal
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