Viewing profile — jerguismi

To become a bank you need an account at the central bank. Getting a banking license is difficult. And even after you get it, central bank can freeze your assets any time.

> It's crazy that they messed this up, Tether is basically a money printing machine, all they had to do was be solvent. > Tether is a fundamentally a risk free money making concept…

Full-blown government collapse is quite far-fetched scenario. Infrastructure in venezuela still works at some level, however poorly. Bitcoin works in places pretty well where gover…

> They are selling gold to afford these necessities. They are probably using anything that there is available as a currency replacement. I would bet that mostly physical USD, but a…

Well lots of bonds tend to have negative returns nowadays...

Well, if you follow that logic your whole life, you will have lots of bitcoins when you die. Happy life I guess? The point of money, currency or any financial asset is to produce v…

Quite often this kind of instruments might be "tradable debt instruments" which can't be converted to actual bitcoins, but can be traded back and forth on the platform to tradition…

Well, banks can give out loans too eagerly to wrong people meaning that the resell value of the loan can be much less than the value of the loan. In fact nowadays it is not that ra…

Usually by insolvency is meant that the bank doesn't have enough liquid, hard assets to cover up the withdrawals from the bank. Bank can have varying assets such as bonds that it h…

Central banks can print money, banks can't. Banks can only do fractional reserve. Sometimes banks go bust, sometimes central bank might save them.

> Sure some of these assets are not liquid. Most of the banks assets are not liquid, such as the loans they have lent out. Banks quite often have problems that they give credit out…

More like fractional reserve banking.

On the other hand people have been saying the same about tether for many years, and it still has kept the peg at pretty good levels. And it is still the most liquid and biggest "st…

Yeah they are loans, like apartment loans. The loan might be for something like 20 years and might default. In my opinion having assets like house loans is pretty far away from bei…

Small amounts are somewhat easy to exchange, if you want to exchange millions it gets much, much more difficult since you have to explain the source of funds to the exchanges and b…

> To expand on it further, even if you are lucky to have joined a unicorn, you still didn't get a good deal in comparison to virtually everyone else involved in the company. The fo…

There seems to be some kind of understanding that start-up means aways working overtime etc. AFAIK that is not often the case, but people can work quite normally in early-stage com…

Wow, genious idea.

I have used Bitcoin to buy various things and used it as a savings instrument, I see that it has solved problems for me. Of course I could use other tools for that, but if you thin…

> It's very simplistic to say that (low, predictable) inflation hurts individuals. Hurting might be the wrong term. Analogy would be something like having some bonus card which giv…

One speculator enters the market = one more buyer and seller. If you go to a stock exchange, you see the bids and asks. The more there is those, the better the liquidity. Each spec…

> What is driving the value of a bitcoin? No one knows, maybe some have same theory of value and that's why there is speculation? I see nothing special in bitcoin, it is just one o…

Why not have inflation at 10% to have even better "nudge" for people to work? You are essentially communicating the same thing that the crypto nerds are saying, just from a differe…

> Hoping that it will mis-count your wealth in your favor is speculation, which is a bad, dangerous role for currency. Speculation is rampant also with traditional currencies - I r…

There are actually lot of cryptocurrencies with issuance for eternity: dogecoin, grin comes to mind at least. The inflation parameters are the easiest to change, if for Bitcoin tho…