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Lone Bitcoin Whale Likely Fueled 2017 Price Surge, Study Says

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Re: Lone Bitcoin Whale Likely Fueled 2017 Price Surge, Study Says

#331

Post by qeternity »

nostrademons wrote: post #285
heelhook wrote: post #283

Earlier quoted context omitted.

> When folks want to dump Tether, they generally cannot dump it directly into dollars. They have to dump to Bitcoin, move it off-exchange, and then sell the dollars on an exchange with fiat currency. Not sure where you got that from, but that's not true whatsoever; USDT/USD is a thing in a bunch of exchanges with really healthy volume. Other than a few months ago (perhaps the run you mentioned in May) there's normall…

It's a thing on Kraken and Bittrex, with about $2M in daily volume on Kraken and $290K on Bittrex. That's a lot of trading days to absorb the $4.1B market cap of Tether or even the $800M that are reportedly unbacked.

Also volume != liquidity

Re: Lone Bitcoin Whale Likely Fueled 2017 Price Surge, Study Says

#332

Post by askmike »

ppf wrote: post #254
askmike wrote: post #231

Earlier quoted context omitted.

I don't know the answers to this strange question. What's the most you can send to another bank account without compliance issues?

Lightning network is limited to the liquidity offered by channel operators. What is the current situation like?

Situation is great, note that I operate my own channels and I'm not sending millions around every day.

Re: Lone Bitcoin Whale Likely Fueled 2017 Price Surge, Study Says

#333

Post by askmike »

scott_s wrote: post #271
askmike wrote: post #231

Earlier quoted context omitted.

I don't know the answers to this strange question. What's the most you can send to another bank account without compliance issues?

What do you mean by "compliance" issues? If you meant that the sum of money you send cannot trigger someone, somewhere to check to make sure the transaction is legit, and we're assuming a transfer from a "normal" bank to another, then I would guess on the order of $10,000. But companies and organizations routinely transfer millions and billions between normal banks. Yes, the transactions may cause someone or many som…

What does OP mean with "liquidity issues"? Lightning is a routing network, and you can connect directly to your counterparty, circumventing all potential liquidity issues.

> But companies and organizations routinely transfer millions and billions between normal banks

Just like companies have direct lightning channels between each other, they can send billions of they please.

Re: Lone Bitcoin Whale Likely Fueled 2017 Price Surge, Study Says

#334

Post by askmike »

Chlorus wrote: post #273
askmike wrote: post #232

Earlier quoted context omitted.

> but nobody was saying "the internet is a bust" Many people were saying this, Paul Krugman (one of the leading economists) went as far as comparing the internet to the fax machine: "The growth of the Internet will slow drastically, as the flaw in 'Metcalfe's law'–which states that the number of potential connections in a network is proportional to the square of the number of participants–becomes apparent: most peopl…

> Many people were saying this, Paul Krugman (one of the leading economists) went as far as comparing the internet to the fax machine: And he caught a bunch of shit for it, even at the time. You keep trying to conflate critics of Bitcoin, many of whom have technical & finance backgrounds, with the largely non-technical crowd that didn't understand the web back in the 90s. > I'm too young to live through it, but lucki…

"Media history" would be the English translation. It wasn't about the technical origins of the internet which are irrelevant in this discussion.

They studied the impact on a few big media inventions (printing press, TV and the internet) on (western) culture. It seems you don't believe I had this in University? You can find some information here: https://docplayer.nl/2209094-Studiegids-2013-2014-communicat...

The subject is called "Mediageschiedenis" and you can find it on page 37. This document is unfortunately in Dutch.

Re: Lone Bitcoin Whale Likely Fueled 2017 Price Surge, Study Says

#335

Post by lostmsu »

Nursie wrote: post #300
lostmsu wrote: post #282

Earlier quoted context omitted.

Can you elaborate?

It's in the source material, but crudely it looks like tether issuances were used to prop up the market as it faltered, timed as they were. Either there was a remarkably, improbably prescient actor there, or it looks fishy as f*ck.

I don't understand, did they acquire dollars to back up those issuances, or not?

Re: Lone Bitcoin Whale Likely Fueled 2017 Price Surge, Study Says

#336

Post by ppf »

Acrobatic_Road wrote: post #276
ppf wrote: post #235

Earlier quoted context omitted.

So in short, a price feed from several crypto exchanges. Thanks!

No, did you even read what he wrote? Price feeds are used in the system, but the whole system does not boil down to "price feeds". I am not even sure what that could mean.

I asked how is the Dai pegged to the dollar, and that is the answer.

Re: Lone Bitcoin Whale Likely Fueled 2017 Price Surge, Study Says

#337

Post by Acrobatic_Road »

ppf wrote: post #336
Acrobatic_Road wrote: post #276

Earlier quoted context omitted.

No, did you even read what he wrote? Price feeds are used in the system, but the whole system does not boil down to "price feeds". I am not even sure what that could mean.

I asked how is the Dai pegged to the dollar, and that is the answer.

Price feeds are the answer? The price feeds in question don't even track the price of Dai - so I am not even sure what mechanism you have thought up to explain to yourself how Maker works.

If you are still having trouble understanding the system there is no shortage of resources available. Of course if you dismiss the resources because of an anti-cryptocurrency bias as you have then you will end up clueless since this is a realm with low-coverage in the mainstream.

Re: Lone Bitcoin Whale Likely Fueled 2017 Price Surge, Study Says

#338

Post by _7fvc »

jillesvangurp wrote: post #109
iagovar wrote: post #2

The more I know about cryptos, the more I remain skeptical. The only people I know that uses cryptos seriously are acquaintancies from latin america, and none of them for storing value, with the exception of Venezuelans. Not even argentinians, that just buy as many dollars they can. IMO this is a thread worth reading on this topic: https://www.reddit.com/r/worldnews/comments/dj2jro/the_large...

There is plenty of future potential for crypto currencies. However, there are a few yet to be addressed technical problems with the current blockchains that make them unsuitable for anything but speculative investment and very light/experimental usage (i.e. only a handful of transactions per meaningful timeunit). The main technical challenges have to do with scaling issues. Facebook's recent proposal for Libra is int…

Very insightful comment. I still have hope for 5) permissionless blockchain. I think the space needs an inflating cryptocurrency. I started a crypto project with 7% supply inflation. I think inflation changes the economics and fill the gap that Bitcoin misses. https://bitflate.org/

Re: Lone Bitcoin Whale Likely Fueled 2017 Price Surge, Study Says

#339

Post by Nursie »

lostmsu wrote: post #335
Nursie wrote: post #300

Earlier quoted context omitted.

It's in the source material, but crudely it looks like tether issuances were used to prop up the market as it faltered, timed as they were. Either there was a remarkably, improbably prescient actor there, or it looks fishy as f*ck.

I don't understand, did they acquire dollars to back up those issuances, or not?

Probably not. Nobody knows the full story, but given that the pattern is one of responding to market movements rather than looking like money flowing in to a market from investors, it seems unlikely.

Further, given their outright lies about auditing and the recent admission that only 75% of tether is backed by cash or cash-like instruments, it looks a lot like a huge fraud to me.

Make your own mind up I guess, but if you're going to tell me "See, nobody actually knows!", then that's true. But we can analyse what looks likely, and what looks likely is that it's been issued out of thin air to prop up the market price of BTC and fleece market participants for the benefit of owners of the Tether corp and Bitfinex.

I guess we'll see more as the various lawsuits shake themselves out.

Re: Lone Bitcoin Whale Likely Fueled 2017 Price Surge, Study Says

#340

Post by Nursie »

askmike wrote: post #232
Nursie wrote: post #230

Earlier quoted context omitted.

Nobody said that back then, no. They said there had been an over-exuberant market with people throwing stupid money at any old idea, but nobody was saying "the internet is a bust" or even "we don't know the use-cases" because there were a ton of other useful, successful things going on with it. You said it yourself - you're too young to actually know a lot about that, but you use it to bolster your arguments anyway.

> but nobody was saying "the internet is a bust" Many people were saying this, Paul Krugman (one of the leading economists) went as far as comparing the internet to the fax machine: "The growth of the Internet will slow drastically, as the flaw in 'Metcalfe's law'–which states that the number of potential connections in a network is proportional to the square of the number of participants–becomes apparent: most peopl…

Then he was an idiot, because at the time email was already in heavy use and had been for years, and had had a massive effect on business communication and the economy. Unless for some reason you don't count email as part of 'the internet'?

I was working back then, in 2003. The view on the ground was that SV had blown its head, but the rest of the world was just getting on with it. In fact most of the tech industry didn't even notice or care.

If you want to talk about whether web-based commerce was looking feasible, well even that was healthy enough - amazon was there and people were using it more and more, though clearly it wasn't as big as it is today.

So no, there was no feeling that 'the internet' wasn't going to be such a huge thing. There was a pessimism about some aspects of web commerce.

But I guess that's not as catchy a tagline as "It's like the early internet!"

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