Crypto The problem with crypto investing

Discussion in 'Other Asset Classes' started by charttv, 26th Feb, 2021.

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  1. charttv

    charttv Well-Known Member

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    several of these exist, they are known as stablecoins. The most prominent is Tether which is supposedly pegged 1:1 to the US Dollar, so for every tether, there is one US Dollar in reserve backing it. Unfortunately, the firm beind Tether has run into all sorts of legal difficulties and they have admitted that each Tether isn't actually backed 1 to 1 which is a massive issue for the ecosystem.

    You don't really trade stablecoins as they don't really move much, they are used more as on and off ramps into the crypto ecosystem, exchanges in particular. This is because alot of the ecosystem is unbanked (you cannot link your cash deposit bank account to many exchanges).

    Many believe that the recent crypto rally was spurred by unprecedented (over 35 billion to date) Tether printing out of thin air. These Tethers were used to pump the price of Bitcoin in an attempt to FOMO everyone into crypto. search "tether fraud" for a bunch of pretty damning evidence against them.

    Facebook is attempting a stablecoin. The initial plan was for a basket of currencies backing each what were then called Libra tokens. This was a bad idea and they have since rebranded and wound back the scope of their token. This is a good book detailing what happened https://www.amazon.com.au/Libra-Shrugged-Facebook-Tried-Money-ebook/dp/B08KK9SZP6

    I should add that there is some proposed legislation in the US called the Stable act which deals with crypto stable coins. It's passing will not be good for crypto.
     
    Last edited: 3rd Mar, 2021
    charttv, 3rd Mar, 2021
    #101
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  2. Laker

    Laker Well-Known Member

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    Know I know how a broken record feels. Refer to previous posts for all the questions asked.
    A few points:
    No one knows how many bitcoins might be lost. Again you show your ignorance regarding lightning as we don’t know how many transaction are occurring as they are private and you can only see when a channel is opened or closed.
    The money you see on the screen is not yours. You don’t control it. If you want it you need to ask the bank for permission to send or withdraw it and make sure it’s in banking hours. Me, I can send bitcoin 24/7 to who ever and wherever I wish. I need no permission.
    AGAIN bitcoin is an emerging tech in its infancy. The internet took 30years to gain adoption. And guess what the naysayers were saying then “it will never scale to play video”, “it’s only good for child porn”, “we don’t need it”!
     
    Laker, 3rd Mar, 2021
    #102
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  3. Laker

    Laker Well-Known Member

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    Stablecoins are predominantly for people wishing to stay in USD but the upside is unlike the traditional banking system you can earn up to 12.5% interest on your money.
     
    Laker, 3rd Mar, 2021
    #103
  4. charttv

    charttv Well-Known Member

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    hmmm, Lightning network, hey

    Lightning is “economically irrational”, “payment fees will rise significantly”, and “payments are easily de-anonymizable” “even if transactions are onion routed.” None of which should be news to anyone who isn’t trying to use Lightning as part of a Bitcoin “number go up” narrative.

    News: Bitcoin trading near-dead, MooCowMoo does a Dash, Lightning Network, CBDCs are a bluff, Keybase alienates users

    and
    Bitcoin’s Lightning Network Is Struggling To Overcome Fundamental Issues

    you can do interbank transactions 24/7 from whoever, to whomever? What's your point? Unless of course you want to scoot around sanctions and send money to Iran, or North Korea or terrorist groups or kiddie pr0n creators or pay for ransomware. There's a reason there are limits on who you can and can't send money to and even then, there is cash.
     
    charttv, 3rd Mar, 2021
    #104
  5. Laker

    Laker Well-Known Member

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    You never fail to disappoint! Posting articles written by people who probably no even less on bitcoin as yourself!
    You can send international transactions (that will clear) on weekends?
    Regarding sending money to wherever you want. I had a friend who did humanitarian work in Africa a few years ago. They had great trouble getting money into the country to do there work to help the people. Another thing which comes to mind was podcaster Peter McCormack who had to use bitcoin to buy medical treatment for his dying mother. It was approved in a number of other countries and showed great results but due to government red tape it wasn’t approved in the uk.
     
    Laker, 3rd Mar, 2021
    #105
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  6. charttv

    charttv Well-Known Member

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    I sent a donation to a Syrian charity during the height of the civil war. The bank vetted it before passing it through. There were no major issues.

    The utopian world without KYC and AML has proven to be a dystopian nightmare. Too many bad actors have ruined it, sadly.
     
    Last edited: 3rd Mar, 2021
    charttv, 3rd Mar, 2021
    #106
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  7. charttv

    charttv Well-Known Member

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    "But Bitcoin exhibits a lot more fragility than the true believers admit or realize. Bitcoin is all about confidence, and confidence has a funny way of disappearing in a flash."

    Bloomberg - Are you a robot?
     
    charttv, 4th Mar, 2021
    #107
  8. charttv

    charttv Well-Known Member

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    "And although many cryptocurrency advocates argue that cryptocurrencies can greatly reduce the friction of remittance payments, there is not much business evidence yet that crypto remittances have much demand."

    Stop Saying You Want To Bank The Unbanked
     
    charttv, 4th Mar, 2021
    #108
  9. charttv

    charttv Well-Known Member

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    banking regulators have good reason to want to vet transactions. censorship resistance is great in theory but in practice, look what happens

    Bitcoin and the Alt-Right
     
    charttv, 4th Mar, 2021
    #109
  10. Laker

    Laker Well-Known Member

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    Laker, 4th Mar, 2021
    #110
  11. Laker

    Laker Well-Known Member

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    Laker, 4th Mar, 2021
    #111
  12. Laker

    Laker Well-Known Member

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    Laker, 4th Mar, 2021
    #112
  13. Simon Hampel

    Simon Hampel Founder Staff Member

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    I'm surprised they haven't yet.

    But imagine setting up as a market maker for Bitcoin with the extreme volatility - the spreads would have to be huge to manage that risk.

    Also how about transaction throughput? Could the market maker actually achieve transaction times fast enough to allow an ETF to trade Bitcoin effectively on the ASX? I don't know enough about how this works or what the technical limitations of Bitcoin are or what the market maker would need to do to actually make this work.
     
    Simon Hampel, 4th Mar, 2021
    #113
    charttv likes this.
  14. hammer

    hammer Well-Known Member

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    They can. Coinspot currently are doing this successfully.
     
    hammer, 4th Mar, 2021
    #114
  15. charttv

    charttv Well-Known Member

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    charttv, 4th Mar, 2021
    #115
  16. charttv

    charttv Well-Known Member

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    charttv, 4th Mar, 2021
    #116
  17. Laker

    Laker Well-Known Member

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    Laker, 4th Mar, 2021
    #117
  18. Laker

    Laker Well-Known Member

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    Laker, 4th Mar, 2021
    #118
  19. Laker

    Laker Well-Known Member

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    Laker, 4th Mar, 2021
    #119
  20. charttv

    charttv Well-Known Member

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    i don't understand why you are posting bullish price targets, no disagreements there. I am actually bullish in the short term on the price and think it has a ways to run yet.

    This thread is about issues investing in the space.

    Besides, why the obsession with what tokens are priced in fiat terms? I thought tokens were superior and going to take over the world? Why seek validation through fiat pricing? Could it be that most coiners are hypocrites and are really only interested in number go up? Hmmmmm
     
    charttv, 4th Mar, 2021
    #120
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