You’re describing an event that would wipe out the US economy and trying to protect against that with stable coins, or at least that’s the impression I’m getting.
If the US falls apart, your startup will too. No matter how well preserved your cash reserves are.
The US going to war or entering hyperinflation is probably at the bottom of most founders lists of existential worries. Not a risk to mitigate (it’s a risk you need to accept since there’s nothing you can do - worrying about it won’t help)
Also, worth mentioning that no one lost money with SVB’s collapse. One might argue it was an incredibly smart decision for YC to recommend people bank at SVB since if SVB goes under, virtually all LP’s and everyone in the VC community will go under too (too big to fail, so they won’t, or if they do, everyone else fails too — kind of like AWS us-east-1)
Nah, hedging war is a meme, but I labeled it as such.
Startups that wanted to treasury in BTC or GLD, were told no, and were vindicated in hindsight are not a meme. Startups that were force-fed 10% inflation and a collapsing bank aren't a meme. That happened.
You can complain that it's irrational to hedge against these things which have been happening an awful lot lately, but you aren't the one who gets to decide. If an enterprising alternative VC is peeling away good founders by being flexible on this point, YC's option is to compete or let the deals go.
> kind of like AWS us-east-1
is this the right comparison? us-east-1 goes down a lot to an extent because everything goes down at the same time, rather than as a collective need to stay up. its one of the worst AWS regions if what you care about is stability and up time. too big to fail does not add extra up time guarantees to that region
No one might have lost their money with the collapse of the banks but with the large amount of new money printed, the value of each dollar will continue to erode.
Inflation and hyper-inflation can wipe out debts with future money that's cheaper more easily in some ways. I forget where I had read or learned more about this in other countries that had experienced it.