Is there a single person in HN that has profited more than $1M through Bitcoin? And I mean someone who has actually sold and now has $1M more in the bank?
An $814M Mystery Near the Heart of the Biggest Bitcoin Exchange
301–310 of 359 posts
Re: An $814M Mystery Near the Heart of the Biggest Bitcoin Exchange
#302Earlier quoted context omitted.
Why not. Sell your coin to tether to weather short term price dips and transfer between exchanges.... If tether is unsustainable long term, who cares?
If it's 1-1 to USD, why not just swap coin for USD?
That's the point, you can't do that now and more than likely ever...
Re: An $814M Mystery Near the Heart of the Biggest Bitcoin Exchange
#303Earlier quoted context omitted.
> Bear in mind that this is bitcoin It's still a market, so market logic should apply. > get rich quick with bitcoin I see the same shit with real estate. > sufficient people buying tethers at face value It's a market. Smart money can sell tethers. When there's information that all market participants know, the market price should reflect that information.
Why are markets inherently "smart?" And why is a crash not the market being "wrong?" What even is the market ? If it's the people in it, and they're smart, why did they buy subprime loan investment instruments and nuke the housing market and lose all their money?
> What even is the market?
A democracy where people vote with their money. Since their is significant risk involved, said people are assumed to do at least some due diligence/research before placing their "votes." And for that reason people have confidence that markets are right/smart, because why would so many intelligent people put themselves at enormous risk by placing their confidence in a bad investment?
Of course if the original investors get rich, eventually this leads to ignorant people (i.e. people who have not done their research) jumping in and the smart market becomes something else.
I know I am oversimplifying
Re: An $814M Mystery Near the Heart of the Biggest Bitcoin Exchange
#304Earlier quoted context omitted.
If you had securities investments in 2008, your money is fine, as long as you held it for a few years before or after 2008. Only if you cashed out stocks in 2009 or sold your last house in 2010 would you be hurting. For the larger economy, there's no reason to expect Bitcoin would promote general economic health/growth more than national fiat currency.
Stocks only recovered because of unprecedented money printing by central banks across the world. That experiment is, at best, half over. I'll trust in bitcoin, thanks.
That's not an entirely accurate representation what the Federal Reserve does, but even so, it's their job to issue bonds, which helps regulate the economy.
Re: An $814M Mystery Near the Heart of the Biggest Bitcoin Exchange
#305I'm not sure but, isn't this how the real banks operate, too? For example let's take a legal, legit, Bank named X in a country. If all the account owners wanted to retrieve their money, at the same time: can that bank serve that demand? Because normally for every 1 dollar deposited inside, bank can give away 5 dollars worth of credits to other people. (the ratio changes in every country probably). So accusing a virtu…
> Because normally for every 1 dollar deposited inside, bank can give away 5 dollars worth of credits to other people.
That's not the reason they can't pay everyone back in that scenario.
Even if they could only loan out the dollars that were deposited, it would still be the case that if all account owners wanted to get their money at once, they wouldn't be able to because the money is loaned out.
The only way it could be possible that everyone shows up at once, withdraws all their money, and actually gets it (without the bank borrowing it from another bank) is if the bank has all of the money sitting in a vault doing nothing.
Re: An $814M Mystery Near the Heart of the Biggest Bitcoin Exchange
#306Earlier quoted context omitted.
> fully determined by supply and demand With bitcoin you cannot manipulate the supply, therefore you can't magically create $800M out of thin air.
But the demand can change. Given a constant quantity supplied and an increase in demand, price goes up If you cannot increase supply in response to a higher price driven by higher demand, prices will increase even more See this Econ 101 chart [1]: Y axis represents price, x axis represents quantity. The lines represent simplified supply and demand curves (Wikipedia can explain why they are shaped as they are) Initial…
Just like housing in the bay area. The supply can never increase, hence prices must go up, even if no almost no one can afford it. All that matters is that the .001% of the population that's buying houses can afford those higher prices.
Re: An $814M Mystery Near the Heart of the Biggest Bitcoin Exchange
#307Earlier quoted context omitted.
From coinbase TOS: You acknowledge that the quoted Buy Price Conversion Rate may not be the same as the Sell Price Conversion Rate at any given time, and that Coinbase may add a margin or “spread” to the quoted Conversion Rate.
I like how they say "may add"... haha, they always add it! I assume they're talking about the GDAX order book but if you watch the live coinbase price data on tradingview.com and try to buy bitcoin on casebase at the exact same time, it's always a little higher on coinbase.com (about 0.5% higher from my experience). I wouldn't mind if they weren't also charging an additional ~4% fee on top of that.
So that's more fee than the worst wire transfer or credit card currency exchange?
Re: An $814M Mystery Near the Heart of the Biggest Bitcoin Exchange
#308Is there a single person in HN that has profited more than $1M through Bitcoin? And I mean someone who has actually sold and now has $1M more in the bank?
Are you looking for a documented case, or just wondering about the probabilities? The former is "no", and even if there was, I doubt it was formally verified. Think about it, if you made millions in bitcoin, why would you paint a huge target on your back by posting to an online forum? The latter is "probably yes", considering that at least 20% of hners heard about bitcoin when it was cheap (< $100).
Re: An $814M Mystery Near the Heart of the Biggest Bitcoin Exchange
#309BTC Trading volume over the last 24hrs is $6,795,970,000 (https://coinmarketcap.com/currencies/bitcoin/#markets)
Tether trading volume over the last 24hrs is $803,868,000 (https://coinmarketcap.com/currencies/tether/#markets)
At most tether can make up 11.8% of BTC's daily trading volume. If tether tanks, then it seems that worst-case BTC could suffer a 10% drop in demand, ceteris paribus.
Please tell me if there is a flaw in this logic. Seems like there is a valid critique about BTC being boosted by tether, but that doesn't come anywhere close to explaining the exponential growth of value in BTC.
Re: An $814M Mystery Near the Heart of the Biggest Bitcoin Exchange
#310BTC Trading volume over the last 24hrs is $6,795,970,000 ( https://coinmarketcap.com/currencies/bitcoin/#markets ) Tether trading volume over the last 24hrs is $803,868,000 ( https://coinmarketcap.com/currencies/tether/#markets ) At most tether can make up 11.8% of BTC's daily trading volume. If tether tanks, then it seems that worst-case BTC could suffer a 10% drop in demand, ceteris paribus. Please tell me if there…
Reputational risk from BTC being tied to Tether?