The Bit Short: Inside Crypto’s Doomsday Machine
crypto-anonymous-2021.medium.com
The Bit Short: Inside Crypto’s Doomsday Machine
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Re: The Bit Short: Inside Crypto’s Doomsday Machine
#2Related: Tether’s bank Deltec says it invests customer funds in Bitcoin
https://www.deltecbank.com/2021/01/14/a-covid-year-in-review...
https://www.coindesk.com/tethers-bank-says-it-invests-custom...
https://twitter.com/patio11/status/1349873798078558209
The next weeks/months are going to be fascinating to watch, as US regulators and invested institutions fight to both regulate and protect their crypto investments. Maintaining the inflated cryptocurrency valuations propped up by Tether while simultaneously removing it from the game before too many eyes set on it, will surely require subtle maneuvering.
Ultimately I do suspect OP indeed, sold early, as the game theory mechanics strongly favor just participating in the Ponzi rather than trying to bring it down, especially when this has the potential to be the one last great bubble before a major recession.
Re: The Bit Short: Inside Crypto’s Doomsday Machine
#3>On January 9th, 2021, I liquidated my crypto position for USD.
Crypto Anonymous, you sold extremely early, I'm sorry.
Re: The Bit Short: Inside Crypto’s Doomsday Machine
#4> Most of my wealth was exposed in the form of Bitcoin
Yikes.
Re: The Bit Short: Inside Crypto’s Doomsday Machine
#5> For the rest of 2020, my inflationary thesis looked right
Just to make it clear: there's absolutely no broad inflation almost everywhere in the world, certainly not in the United States. It may still come, but inflation is not why Bitcoin is on such a tear. Look at CPI or PPI of you don't believe me.
Although this does remind me of the Green Lumber Trader story from Taleb. Congrats on the trade!
Re: The Bit Short: Inside Crypto’s Doomsday Machine
#6I don't get it. tether sucks. If you hold tether it may turn into air. But your bitcoin is still bitcoin. Also, when tether is going down wouldn't you want to sell it thus creating pressure in btc/tether market and value of of tether/btc going up? It's always been clear to me that USD/BTC and USDT/BTC are two different markets. USDT is just another cryptocurrency. Many of them were scams and disappeared and many more will. Same with exchanges. It seems like describing somebody maliciously selling fake or paper gold and concluding that gold is bad.
Re: The Bit Short: Inside Crypto’s Doomsday Machine
#7[flagged]
Re: The Bit Short: Inside Crypto’s Doomsday Machine
#8I don't get it. tether sucks. If you hold tether it may turn into air. But your bitcoin is still bitcoin. Also, when tether is going down wouldn't you want to sell it thus creating pressure in btc/tether market and value of of tether/btc going up? It's always been clear to me that USD/BTC and USDT/BTC are two different markets. USDT is just another cryptocurrency. Many of them were scams and disappeared and many more…
Did you read the article? The author doesn't concluse that Bitcoin in itself is bad, they simply realized by themselves that most of the dollar value increase was caused by Tether, and they fear Tether eventually going down might be a black swan event causing prices to tumble. But 1 BTC = 1 BTC, yes.
Re: The Bit Short: Inside Crypto’s Doomsday Machine
#9Uh.. one little problem with this kid's analysis. There are multiple USDT/USD markets (https://www.tradingview.com/symbols/USDTUSD/)
Re: The Bit Short: Inside Crypto’s Doomsday Machine
#10I don't get it. tether sucks. If you hold tether it may turn into air. But your bitcoin is still bitcoin. Also, when tether is going down wouldn't you want to sell it thus creating pressure in btc/tether market and value of of tether/btc going up? It's always been clear to me that USD/BTC and USDT/BTC are two different markets. USDT is just another cryptocurrency. Many of them were scams and disappeared and many more…
Did you read the article? The author doesn't concluse that Bitcoin in itself is bad, they simply realized by themselves that most of the dollar value increase was caused by Tether, and they fear Tether eventually going down might be a black swan event causing prices to tumble. But 1 BTC = 1 BTC, yes.
Many value increases are irrational, whatever that means, I understand how it can be used to pump the price. I just don't understand how it takes bitcoin with it when collapsing.