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Ask HN: What sort of systemic risk to crypto is Paul Graham referring to?

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Re: Ask HN: What sort of systemic risk to crypto is Paul Graham referring to?

#31

Post by dsq »

hayst4ck wrote: post #28
dsq wrote: post #27

Earlier quoted context omitted.

If crypto is used mainly for criminal or other illicit activities, isn't the crash of crypto a basically good thing, by destroying the monetary resources of criminals? Similarly to how the issuing of new banknotes makes older banknotes less valuable and therefore harming mainly those who transact with a lot of physical cash such as cartels.

Not if you're invested in it. Not if you want to see blockchain technology used to replace the DTCC. Not if you think there are potentially extreme differences between crime (laws enforced by power) and justice (what is ethically right or wrong). The people who invest in crypto are rent-seeking parasites hoping to extract value while incidentally providing liquidity to the Chinese miners blowing non trivial amounts o…

Okay, I understand the advantage of having a currency which is completely independent from the government. I suppose like everything there's always some good and some bad.

Re: Ask HN: What sort of systemic risk to crypto is Paul Graham referring to?

#32

Post by bookaway »

pdog wrote: post #2

Not sure how to interpret these tweets: > A person I have known for more than ten years, who I consider trustworthy, is convinced the cryptocurrency economy will shortly experience a systemic risk. I don’t know anything concrete, but if I were exposed, I would be concerned. https://twitter.com/paulg/status/1594446009010212865 > I didn't write that. He did. Since I don't know any details, I didn't feel I should edit i…

As I mentioned in my previous post [0] (now flagged), pg seems to be going out of his way to contribute to the ongoing negative signal of the crypto crash, despite him, YC, and his some in his network having a vested interest in a entity that may continue to be significatly affected (coinbase).

I mean,the out-of-context mainstream media headline writes itself:

“Early Coinbase investor says Crypto ecosystem facing systemic risk.”

As someone who would want to do right by the founders that he invested in, I can’t imagine he didn’t run this tweet by Brian Armstrong, the CEO of Coinbase.

[0] https://news.ycombinator.com/item?id=33693012

Re: Ask HN: What sort of systemic risk to crypto is Paul Graham referring to?

#34

Post by dzamo_norton »

zeven7 wrote: post #9
pdog wrote: post #2

Not sure how to interpret these tweets: > A person I have known for more than ten years, who I consider trustworthy, is convinced the cryptocurrency economy will shortly experience a systemic risk. I don’t know anything concrete, but if I were exposed, I would be concerned. https://twitter.com/paulg/status/1594446009010212865 > I didn't write that. He did. Since I don't know any details, I didn't feel I should edit i…

What's the point of even tweeting that? If someone is exposed and following PG, are they just supposed to panic sell now?

Presumably he hoped to warn his network that they should lower their risk profiles and get into a defensive position. Without specifics no one knows if that means withdraw from exchanges or trade into fiat but people do have some general idea of where safety is and isn't.

Re: Ask HN: What sort of systemic risk to crypto is Paul Graham referring to?

#36

Post by robocat »

reducesuffering wrote: post #25

He's likely referring to patio11's warnings about impending Tether/USDT implosion, which will have huge knock-on effects to the rest of cryptocurrencies.

patio11 has updated his opinion, although it isn’t “systemic”:

https://threadreaderapp.com/thread/1594778237967560705.html

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