> Most of my wealth was exposed in the form of Bitcoin Yikes.
He didn't say most of his wealth was in the form of Bitcoin when he entered the trade.
The Bit Short: Inside Crypto’s Doomsday Machine
61–70 of 297 posts
Re: The Bit Short: Inside Crypto’s Doomsday Machine
#62Earlier quoted context omitted.
Please pay taxes. Change the system instead of giving it reasons to put you into jail. I don't think very highly of people who brag about not paying taxes which they are due.
Please do your darndest to legally pay the least amount taxes possible and find every opportunity to change the system so taxes are lowered: you tax money will, in the vast majority of the cases, be wasted Stop feeding the beast. Starve it every opportunity you have.
Both opposites of this tax debate spectrum are flawed. Most important thing is to enjoy life. If you focus too much on avoiding taxes, or pay them too much, you are losing. Pay what you pay and only spend resources on tax planning if it makes sense.
Re: The Bit Short: Inside Crypto’s Doomsday Machine
#63This is nothing more than FUD designed to benefit a short position. The reason why exchanges like Binance and Bybit have their inflows from Tether... is because (as the author explains) they only take Tether! Why do they only take Tether? Because US banking is incredibly expensive and a regulatory nightmare. Why do people use Tether exchanges, over Coinbase? Not just because of leverage, but also because many do not…
The "all the banks in only hold a tiny fraction of the cash Tether claims to own" argument is a fairly solid one.
Care to deconstruct it?
Re: The Bit Short: Inside Crypto’s Doomsday Machine
#64Earlier quoted context omitted.
inflation in consumer goods might not be high, but financial assets have clearly inflated: a quick look at gold denominated SPY shows it.
Why not TSLA/gold? That proves there is inflation! Or I know, BTC/USD, that clearly proves there's lots inflation and look at that bitcoin price is perfectly correlated with it! (I am only half-joking here, the point is that broad inflation is much much more important than some bull market in this or that asset class) On a more serious note a lot of commodities are looking really bullish, including some foodstuffs, a…
Real estate inflation is the real driver behind practical inflation all over the world though.
Real estate bubble -> High deposits for house purchases -> High rents -> Effective inflation
Most governments don't include real estate (or even rent payments) in their inflation calculations to keep it artificially low.
Re: The Bit Short: Inside Crypto’s Doomsday Machine
#65Article seems mostly accurate but there's a mistake in understanding about the Whale Alert tweets
> What’s more, the supposed USD inputs (e.g., 401,431,056 USD in the top left transaction) are giving perfectly round Tether outputs (e.g., 400,000,000 USDT in the same transaction) in every block — regardless of the prevailing exchange rate or anything else.
Whale Alert uses exchange rates to convert currencies in the post. The "USD inputs" are simply the USDT that was minted converted using a USD/USDT exchange price (I'm not sure which one)
Whale Alert has also hard-coded USD/USDC to 1:1, which is why the coinbase pro minting Tweets match exactly
Re: The Bit Short: Inside Crypto’s Doomsday Machine
#66Earlier quoted context omitted.
If tether is pumping BTC then it’ll stop pumping BTC when it’s taken away. Weak hands will fold and then there will be a crash
OK, yes, that's a fair point. But it's not clear to me that pumping being taken away would be a bigger change than people trying to get out of USDT and buying BTC. Also we've been there (mtgox's willy etc). I don't think bitcoin will be much less volatile any time soon. https://www.youtube.com/watch?v=XbZ8zDpX2Mg
People are not buying BTC to get out of USDT, they're buying other stablecoins and tokens pegged to real world assets. The last week has seen a surge in the price of those tokens compared to USDT. I've made good money arbitraging the bouts of panic.
Re: The Bit Short: Inside Crypto’s Doomsday Machine
#67We are due a cryptocurrency correction.
The question is, how low will Bitcoin go on Tether collapse? $20k? $10k?
Or will things get even crazier with $100k bitcoin crashing to $60k?
Re: The Bit Short: Inside Crypto’s Doomsday Machine
#68Earlier quoted context omitted.
The argument basically is tether has been inflating the price of bitcoins. If tether collapses bitcoins will still be there but may trade at $3000/coin rather than $38000. Comparing with gold it's like the price has been inflated by people buying it with forged dollar bills. That said the author seems a bit new to this all with his shock at finding Bob is likely being scammed. Bitcoin has been linked with scams almos…
Why on Earth would $100 billion worth of Tether rushing for a conversion into anything else drag _down_ the price of BTC? Or any other coin for that matter? Have you actually sat down and thought about this, even if 99% waited and cashed out over weeks, that 1% is still a huge injection into the ecosystem. People have been shown time and time again that the money is there, the peg can hold, the underlying company is…
> ” you can hold a bitcoin future going short for the next year less than a coffee per / $1k”
Genuinely curious about how could I do that. I am not that much into cryptocurrencies, so I appreciate if you have the time and will to be specific in the operationals. I do have a (currently empty) account at Kraken, if that helps.
How can I short BTC?
Re: The Bit Short: Inside Crypto’s Doomsday Machine
#69Earlier quoted context omitted.
The argument basically is tether has been inflating the price of bitcoins. If tether collapses bitcoins will still be there but may trade at $3000/coin rather than $38000. Comparing with gold it's like the price has been inflated by people buying it with forged dollar bills. That said the author seems a bit new to this all with his shock at finding Bob is likely being scammed. Bitcoin has been linked with scams almos…
Why on Earth would $100 billion worth of Tether rushing for a conversion into anything else drag _down_ the price of BTC? Or any other coin for that matter? Have you actually sat down and thought about this, even if 99% waited and cashed out over weeks, that 1% is still a huge injection into the ecosystem. People have been shown time and time again that the money is there, the peg can hold, the underlying company is…
> Why on Earth would $100 billion worth of Tether rushing for a conversion into anything else drag _down_ the price of BTC?
If USDT:USD collapses, BTC:USDT will naturally go up, but it's also quite likely that BTC:USD (whether direct or indirect) will go down, to the extent it has been inflated by artificially inflated USDT:USD.
Re: The Bit Short: Inside Crypto’s Doomsday Machine
#70Earlier quoted context omitted.
The argument basically is tether has been inflating the price of bitcoins. If tether collapses bitcoins will still be there but may trade at $3000/coin rather than $38000. Comparing with gold it's like the price has been inflated by people buying it with forged dollar bills. That said the author seems a bit new to this all with his shock at finding Bob is likely being scammed. Bitcoin has been linked with scams almos…
Why on Earth would $100 billion worth of Tether rushing for a conversion into anything else drag _down_ the price of BTC? Or any other coin for that matter? Have you actually sat down and thought about this, even if 99% waited and cashed out over weeks, that 1% is still a huge injection into the ecosystem. People have been shown time and time again that the money is there, the peg can hold, the underlying company is…
How do you short Tether?