221–230 of 517 posts
Earlier quoted context omitted.
Where is that quote from? I don't see it in the linked article
https://www.theblockcrypto.com/post/95207/bitfinex-tether-ne... > Jason Weinstein, a partner at Steptoe & Johnson and counsel to Bitfinex and Tether
Earlier quoted context omitted.
Correlation is not causation. And your mental model of how the cryptocurrency markets work is likely way too simplistic--did you know that cryptocurrency perpetual swap derivatives clear over $350B in daily volume? Pretend for a moment that Tether pulls a Nixon, and closes the "dollar window" ending redeemability. Then what would be the difference between Tether and e.g. the BitMEX XBTUSD perpetual swap contract? Jus…
Ending redeemability? Can you redeem a tether for a USD today?
You can also short it if you are convinced Tether is going to collapse.
Earlier quoted context omitted.
Stocks prices get negatively impacted by rising interest rates. With interest rates at ~0%, there's little money to be made in bonds, savings accounts, or anything that pays interest income, so people put money into stocks w/ the hope the stocks will go up. When interest rates go up to fight inflation, there's more incentive to put money into bond markets, which means there's not as much money going into stocks, whic…
What’s your recommendation for least-worse inflation hedge?
Earlier quoted context omitted.
https://www.theblockcrypto.com/post/95207/bitfinex-tether-ne... > Jason Weinstein, a partner at Steptoe & Johnson and counsel to Bitfinex and Tether
Ahh, so their attorney said something nicely carefully worded, intended to imply to the lay person: "There was no specific finding that allegation X had absolutely occurred, so this shows that all along, allegation X has never occurred".
Earlier quoted context omitted.
I've always championed DAI for a stablecoin. I don't know why it's not more popular. https://makerdao.com/en/ Instead of it being (supposedly) backed by a dollar reserve, it's collateralized by ETH and several ERC20 tokens in a smart contract. The smart contract does things to make DAI tend toward $1. It's been out for years and I think it has worked pretty well: https://coinmarketcap.com/currencies/multi-collateral-…
Can you summarize the dynamics/phenomena that those smartcontracts in DAI exploit to maintain stable value? What stops it from gaining -- or, more importantly, losing -- value? I couldn't tell from the link.
* The interest owed on loaned DAI (called a stability fee) changes depending on the market price. So if DAI goes too high, the stability fee increases which makes getting a DAI loan less attractive. If the market price goes too low, the stability fee drops. If it drops to 0, this would mean interest free collateralized loans.
* There is a savings account smart contract that generates a variable savings rate on DAI. The savings rate changes depending on the market price.
* There is the Target Rate Feedback Mechanism which frankly I don't understand. It has something to do with changing the amount your collateral is worth depending on DAI's market price.
* When the value of the collateralized asset drops to some defined percentage of the DAI withdrawn (currently 150% I think?), the smart contract can liquidate and auction off that asset for the value of the withdrawn DAI. This increases the value of DAI and also ensures that all DAI is overcollateralized.
* MKR token holders function as the governance for DAI and vote on stuff, like the collateralization rate mentioned above. They get rewards for holding MKR and in normal circumstances the amount of MKR is static. But in the event of a black swan, if the collateralized assets drop to below 1:1 faster than the normal system can handle, MKR is automatically generated and sold to raise the additional collateral needed. This devalues MKR in order to keep DAI stable.
Earlier quoted context omitted.
Cryptocurrency isn’t the only way to escape USD inflation. Investors have been investing to avoid inflation long before Bitcoin was invented. Investing in virtually any asset other than cash will, almost by definition, shield you from inflation. Inflation is an increase in asset prices, resulted in reduced buying power. You only need to invest in assets (stocks for example) and minimize holdings in cash if your goal…
On top of that, any asset for which demand comes mostly from being an "inflation hedge" is a bad inflation hedge since prices will rise when people want more inflation hedging and drop when they want less hedging, meaning the majority of people inflation hedging will buy high and sell low. Gold has had that dynamic for a long time, which is one reason it is not considered a good investment most of the time. Buy asset…
Earlier quoted context omitted.
Not very practical if the amount to be preserved is multiple 7 figures, I should have clarified my question better.
US$5M is a bit under 100 kg of gold or 6 tonnes of silver. Might not be a bad idea to spend a few percent of that on hiring security guards and stocking up on perishables to feed them an their families.
So even back in 2017, Tether was backed only by a fraction of USD. >Until September 15, 2017, the only U.S. dollars held by Tether ostensibly backing the approximately 442 million tethers in circulation was the approximately $61 million on deposit at the Bank of Montreal. Wonder how much of the tether they pumped out through last year has been backed?
Do people here not realise that people give them bitcoin and other cryptocurrencies for that in exchange for tethers? If they were only a week late in converting it to USD they'd be up tens of billion in profit this year. The lack of critical thinking and mindless mob mentality around tether is amusing and has been going on for years now. Proven wrong everytime.[1][2][3] Even this announcement is dumb politiking that…
So they're speculating to cover their "1:1 Backing!", and relying on BTC still being hyped, like they said all along?
No, wait, hang on. They were the ones who said they received 1:1 USD inflow for each and every Tether printed.
Now you're like "mindless mob mentality!" while fully admitting that their claims all this were exactly as the mob said.
Tell me, what happens to Tether's ability to create backing out of BTC (or whatever) arbitrage and trading if and when BTC craters again?
> Bitfinex has banned US customers since 2017.
NY is still investigating and believes that Bitfinex has knowingly kept US customers while claiming that they don't.
"Contrary to online speculation, there was no finding that Tether ever issued tethers [USDT] without backing, or to manipulate crypto prices," said Weinstein, a former federal prosecutor. [0] [0] https://www.theblockcrypto.com/post/95207/bitfinex-tether-ne... EDIT: For some reason I'm being downvoted, but I'm genuinely curious to understand why this news is being simultaneously interpreted in two opposite ways.
A "finding", in legal terms, is a specific, explicit statement with the supporting rationale behind it.
You can make statements in a legal document, even a settlement, without classifying them as "findings" (that have specific legal ramifications).
Indeed, the AG says in the documents that absolutely Tether did not always have backing. However, it doesn't address -issuance- without backing.
So the attorney for Tether is doing as attorneys do, making a carefully crafted statement that will paint a specific impression to the world, whilst being entirely aware (and maintaining plausible deniability) that he is artfully weaving through several other "inconvenient truths".
Earlier quoted context omitted.
> (probably is now) This kind of argumentation makes cryptocurrency proponents so insufferable. There’s no evidence Tether is backed, but somehow we can just assume in a parenthesis that they probably are, and then go on a tangential rant about banks or fiat or digital gold or something.
>This kind of argumentation makes cryptocurrency proponents so insufferable. There’s no evidence Tether is backed, but somehow we can just assume in a parenthesis that they probably are, and then go on a tangential rant about banks or fiat or digital gold or something. Ah yes, because all cryptocurrency proponents are pro-tether.