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The Bit Short: Inside Crypto’s Doomsday Machine
91–100 of 297 posts
Re: The Bit Short: Inside Crypto’s Doomsday Machine
#92Earlier 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? Or any other coin for that matter?
Price in which terms? USD? USDT?
Suppose it turns out tether is a fraud. What will happen? Tether holders will try to sell it for USD or Bitcoin. High supply of tether will lead to higher BTC/USDT and higher USD/USDT rate. Those who managed to convert tether to BTC will likely try to convert BTC into USD. This will lead to relative over-supply of BTC versus USD and BTC/USD will decrease.
Re: The Bit Short: Inside Crypto’s Doomsday Machine
#93>But during the same period, total issued Tethers increased by almost $5.4 billion — going from $4.6B to $10B >The implication was shocking: there weren’t nearly enough dollars in all the domestic banks in the Bahamas to >back the Tethers that were floating around in the crypto market. Doesn't match up with whats shown here[1], Bahamas banks are holding 110bn in customer deposits. [1] https://stats.bis.org/statx/srs/…
Those numbers are for all bank offices located in the Bahamas, most of which are foreign bank branches. The numbers in the row "By type of bank - Domestic banks" [1] appear consistent with the article. [1] https://stats.bis.org/statx/srs/table/A5?c=BS&m=S&p=20202&o=...
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Re: The Bit Short: Inside Crypto’s Doomsday Machine
#94>But during the same period, total issued Tethers increased by almost $5.4 billion — going from $4.6B to $10B >The implication was shocking: there weren’t nearly enough dollars in all the domestic banks in the Bahamas to >back the Tethers that were floating around in the crypto market. Doesn't match up with whats shown here[1], Bahamas banks are holding 110bn in customer deposits. [1] https://stats.bis.org/statx/srs/…
Upvoted for coming armed with an actual fact related to the article, disagreeing with the author's premise based on some actual evidence. Might be right, might be wrong, but it's something other than just more opinion. Wish I could upvote more than once.
I'd like to point out for you to refrain commenting in this style, it reeks of reddit-ism. Also, another comment [1] clarified why the original commenter's analysis might be flawed.
Re: The Bit Short: Inside Crypto’s Doomsday Machine
#95Earlier 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.
I prefer to support Swedish's society and just pay my due taxes, thank you. The beast here is responsible for a lot of the quality of life we enjoy, public services included.
Re: The Bit Short: Inside Crypto’s Doomsday Machine
#96Earlier 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…
There's a very strong point to be made that shorts in a rigged market are not a good idea, because squeezing the shorts is easy for the money printers (who plausibly have visibility over the liquidation price points), whereas the odds of actually collecting in a black swan crash are slim to none.
Re: The Bit Short: Inside Crypto’s Doomsday Machine
#97So if I understand this correctly, you can go to one of these pyramid scheme exchanges, tank up on highly leveraged tethers, and then go sell them on Kraken. Do this often enough and you will drain the resources of the pyramid scheme, causing it to collapse. So you make a profit and provide a social good all on one smooth move. Have I got that right?
How exactly do you plan to make a profit in this scenario?
Well, if I understand the OP correctly, it sounds like tethers are basically being printed and sold cheap in return for real money, so lots of people think they have a profit because they have more tethers than the dollars they started with. So if you can get in to that situation and then quickly sell the tethers before the whole thing collapses then you should be in the money.
OTOH if that isn't possible then the allegation that this whole thing is a pyramid scheme fails.
Re: The Bit Short: Inside Crypto’s Doomsday Machine
#98On kraken, one can short Tether against the US Dollar. Since Tether is usually pretty close to $1, I wonder if it’s worth it to open a short in case it’s all falling apart. I mean, in case of a crash the price of tether would most certainly fall, right?
Re: The Bit Short: Inside Crypto’s Doomsday Machine
#99Earlier 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.
How about paying your taxes and "doing your darndest" to change the system so that tax revenue is spent wisely for the benefit of the whole of your society?
Re: The Bit Short: Inside Crypto’s Doomsday Machine
#100Earlier quoted context omitted.
How exactly do you plan to make a profit in this scenario?
Well, if I understand the OP correctly, it sounds like tethers are basically being printed and sold cheap in return for real money, so lots of people think they have a profit because they have more tethers than the dollars they started with. So if you can get in to that situation and then quickly sell the tethers before the whole thing collapses then you should be in the money. OTOH if that isn't possible then the al…
> sold cheap
Where? Find a place that consistently sells tether cheap. If anything, the lack of this place is a sign of poor research base for the original article.
They mention that some exchanges give tether "prises" sometimes, on some occasions, to a select number of users. I don't see how that is so bad, and neither do I see how you could consistently profit from that. Those incentives are likely to be once per user, or once per referred customer, etc. There are likely protections in the form of "you have to trade for this much in order to realize the total prise amount". I don't see how this is any different from bonuses that many online casinos give out, and no one takes that as a sign that a given casino that does this is insolvent.