It's kind of amazing to me that to this day Tether has yet to release an audit that proves a 1 to 1 relationship between USD to Tether.... We might not have seen the real bottom yet, if suspicion about Tether's insolvency eventually turns out to be true.
Bitcoin’s Price Was Artificially Inflated Last Year, Researchers Say
151–160 of 400 posts
Re: Bitcoin’s Price Was Artificially Inflated Last Year, Researchers Say
#152Earlier quoted context omitted.
> I am sure many said something similar about housing prices in 2005. The difference is that the housing prices were clearly in a bubble and banks were intentionally packaging subprime mortgages that they knew were bad and selling them as a low risk investment. This is much much different than Bitcoin. I would argue that Bitcoin is the only asset class that is not currently in a bubble. > The article doesn't prove th…
What you are quoting about banks and bubbles is all in hindsight. At that time everyone and their grandmother thought real estate could only go up. So, if you have data to backup the fact that bitcoin is not in a bubble, please show that. Until then it is just your gut feeling nothing more. > What gives gold its value? It is not that it is used in jewelry. But statistics disagrees with this point: https://www.statist…
All valid points. I personally am very eager to see what happens to Bitcoin and crypto currencies during the next recession.
Re: Bitcoin’s Price Was Artificially Inflated Last Year, Researchers Say
#153Earlier quoted context omitted.
The Fed can inflate away the value of those transactions anytime they want and not only do you have zero control over this process, it is not even possible to predict it. The complexity of the financial instruments used by the Fed is intentional and serves to obscure the fact that they are essentially giving free money to large banks and corporations. Corporations are not getting bigger because they're more efficient…
Which is why the US dollar is always falling compared to other currencies? Deflating currencies are terrible things for economies
People can create new cryptocurrencies to increase the total cryptocurrency money supply.
Re: Bitcoin’s Price Was Artificially Inflated Last Year, Researchers Say
#154Earlier quoted context omitted.
Fraud seems to be easier than you might think. For comparison Bitcoin is about the size Madoff was dealing with. Bitcoin is still loose change in terms of the global economy.
Too bad it isn't also loose change in terms of global energy use :(
a fraction of a percent is pretty much the definition of loose change
Re: Bitcoin’s Price Was Artificially Inflated Last Year, Researchers Say
#155Earlier quoted context omitted.
Doesn't mean it's easy to get approval to spend that "smidge" on an attack.
"smidge over 1%" It's not easy, but it's not impossible (to parent's bombastic assertion). I believe the Manhattan project spent something like 0.55% of the US military budget (against ~2013USD$900b yearly budgets, which seemed the peak in 1942-45). http://www.dictionary.com/browse/smidge
Because it had hard-won political approval; a bitcoin attack would face similar barriers.
And I know what smidge means, I was expressing ire at your attempt to sound folksy.
Re: Bitcoin’s Price Was Artificially Inflated Last Year, Researchers Say
#156Earlier quoted context omitted.
Perspective. We didn't know it at the time, but looking back it's pretty obvious. Once the issue of the forks and the SegWit activation was cleared, the price rose relatively fast. And I'm talking in relative terms; it was undervalued relative to what happened next.
> Once the issue of the forks and the SegWit activation was cleared, the price rose relatively fast. Yes, we know the ship is unsafe because otherwise the front wouldn't have fallen off! We know the price rose. This article is suggesting that the price rose not because it was undervalued, but because it was manipulated upwards by people pumping it up with fake numbers.
Surely the price rose because people thought it would, self-fulfilling prophecy. Done of those people thought it would because that's how they were trying to pull the market.
The people behind articles like this are presumably short on BTC.
Re: Bitcoin’s Price Was Artificially Inflated Last Year, Researchers Say
#157Earlier quoted context omitted.
Do you not think that perhaps the media should keep coming back to the possibility of multi-billion dollar fraud like this?
Valid point, but there are also billions of dollars created out of thin air by the Federal Reserve to pump up the stock market, and perhaps that deserves some media attention as well. https://suremoneyinvestor.com/2017/08/how-the-feds-money-pri...
Those actions did garner media attention. Massive amounts of it.
Re: Bitcoin’s Price Was Artificially Inflated Last Year, Researchers Say
#158Earlier quoted context omitted.
In either of these situations it seems like hodling until victory pays off. The real loser is, well, the planet as the network continues to consume more and more power.
Bitcoin could go the way of any number of other cyptos; back to zero. In any case, nobody uses Bitcoin as a currency because it's logistically harder for 99.9% of people, and nobody uses it as a store of value because its insanely volitale. Bitcoin is really just a speculative asset.
I just made a transfer to someone just yesterday that had never dealt with Bitcoin before. Beyond explaining why "confirmations" were needed, it was surprisingly simple to get a total beginner set up with an account somewhere suitable, and even though I was transferring from an exchange account where I had to get verified (the account predated new KYC requirements), it tooks ~10 minutes to complete the verification process.
So it may be logistically harder, but it's doable enough that it was worth it to avoid having to do an international wire transfer with banks in many cases still stuck in a world of paper and faxes (my bank manager actually boasted about the amount of manual, paper-based back and forth setting up my business account required when I opened it two years ago).
Re: Bitcoin’s Price Was Artificially Inflated Last Year, Researchers Say
#159Today Matt Levine talks about this paper in his daily column: https://www.bloomberg.com/view/articles/2018-06-13/judge-rul... "of these two explanations— 1) Bitcoin’s rapid and sustained rise is due to the fact that it satisfies a real economic need in an elegant way, and people have responded to that; or 2) Bitcoin’s rapid and sustained rise is due to a magical fountain of fake dollars that everyone just decided to…
I'd say there's a simpler explanation. Bitcoin has a limited predictable supply, so its price is mostly a function of the demand. And demand correlates with expectations, that typically follow the hype cycle [0]. I'm not sure how much someone managed to single-handedly manipulate the price, but the plain old human psychology, FOMO and the positive feedback loop for media writing about bitcoin demand definitely played…
Is the supply really "limited"? Sure, there's finite number of "coins" that can be generated. But unlike physical objects, there's not really any special property of that unit. Also, you can just generate a new currency of more units and similar utility (as has happened many times recently.)
Objects in the real world have utility that's directly linked to their unit value. That's not necessarily true for Bitcoin... if it goes up 10X, I can just use 1/10 as much and get the same exact transaction result. So why is it "limited" from a supply/demand perspective?
Re: Bitcoin’s Price Was Artificially Inflated Last Year, Researchers Say
#160Earlier quoted context omitted.
Too bad it isn't also loose change in terms of global energy use :(
a fraction of a percent is pretty much the definition of loose change
Seriously, the way people talk about it you would think that a third of the world's energy supply was getting pumped into NVidia cards.
The global average energy consumption is 110,000TWh.
Every cryptocurrency in circulation collectively uses about 55TWh, or 0.05% of the world's energy usage.