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Bitfinex and Tether required to end all trading activity with New Yorkers

ag.ny.gov

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Re: Bitfinex and Tether required to end all trading activity with New Yorkers

#241

Post by nemo44x »

PragmaticPulp wrote: post #87
mumblemumble wrote: post #52

Earlier quoted context omitted.

Even if we assume only Bitcoin, it's not currently expected to stop printing money until (assuming Ray Kurzweil wasn't right all along) long after we're all dead. The Bitcoin inflation story is more political than simply economic. Right now, it's not really possible for it to be narrowly about whether printing money is OK. But one could easily mount an argument about whether humans should be able to twiddle with the…

It is supremely ironic that we’re supposed to believe that the best way to escape money printing is to buy a cryptocurrency that was invented out of thin air, which is continuously mined (during most of our lifetimes) out of thin air by doing useless calculations. Or even worse, a basket of multiple crypto currencies, where the number of available crypto currencies and crypto assets grows larger every day.

BTC has been the #1 asset over the last 10 years. In many individual years it has out performed every other asset. It has this year by a large amount.

At some point the dissenters will have to admit they were wrong. The reality is, BTC is here to stay and is a valuable hedge that is independent of any corporation, government, or central bank.

Re: Bitfinex and Tether required to end all trading activity with New Yorkers

#242

Post by cwhiz »

cdiddy2 wrote: post #176
cwhiz wrote: post #101

Earlier quoted context omitted.

Ha. The exchange reporting the highest volume is... Bitfinex. I believe you that Bitfinex would lie. Coinbase is reporting $210 billion daily volume. Is every market lying? Or are you just personally wrong?

where on earth are you seeing coinbase doing $210 billion daily volume? Coinbase has only done 94 billion of volume for the month of February so far monthly volumes by exchange: https://www.theblockcrypto.com/data/crypto-markets/spot/cryp...

I didn't say Coinbase was doing $210 billion 24h volume. I said Coinbase is reporting that Tether had $210 billion 24h volume. It's right there on the Coinbase tether page.

https://www.coinbase.com/price/tether

Re: Bitfinex and Tether required to end all trading activity with New Yorkers

#243

Post by luka-birsa »

FireBeyond wrote: post #208
safog wrote: post #187

Earlier quoted context omitted.

I don't think there are any claims that Tether the organization itself is doing anything like that. They just print USDT and send it to people who are interested in buying USDT like exchanges. The two problems as I see them are: - Is USDT actually backed 1:1 by USD / cash equivalents as Tether claims? w/o independent audits we have no idea. So technically, if you hold USDT on an exchange and use it to trade alts and…

> - Is USDT actually backed 1:1 by USD / cash equivalents as Tether claims? w/o independent audits we have no idea. I'm going to say no. Because Tether refuses audit, refuses to name banks, and would be, based on their printing rates, depositing $3.5B USD a week into their bank (a rate which would put them on par with AT&T, Samsung, or Alphabet). I'm not sure how a few people working out of Hong Kong, etc., do that w…

It's well known that USDT is not 1:1 backed and this is true since the AG started their investigation.

Market doesn't care. Right now USDT trading is popular since people are used to it. There are so many stable coin alternatives (backed with various collateral, some like USDC backed by USD 1:1), so you can always remove the risk.

Good luck to those shorting crypto due to "Tether scam". If you're a newcomer, this kind of news makes rounds every X months and market sometimes reacts widely, just to return back and inexperienced crypto investors/users get spooked. I'm not saying that Tether is all good and for sure they run a hazy operation there, but there is a wider crypto adoption taking place now. Companies are diversifying their treasuries, starting to load on BTC as a hedge against inflation.

PS: Expect news of China banning bitcoin, India banning bitcoin, Russia takedown on crypto, Yelen commenting that BTC is a scam. All of this will be amplified to move price down and shakeout small time holders while large investors keep buying more and more.

Re: Bitfinex and Tether required to end all trading activity with New Yorkers

#244

Post by topynate »

"Because of Tether’s inability to conduct significant banking activity during this time, it could not itself hold dollars sufficient to back the hundreds of millions of new tethers that had entered the market."

The word "itself" is doing heavy duty in this sentence. Was there another entity holding dollars in this period? Did Tether issue USDT without a corresponding inflow of USD? We don't know. One would hope that the transparency agreement actually answers these questions for its future operations. It's those questions that matter, after all, not Ms. Letitia James' "efforts".

Re: Bitfinex and Tether required to end all trading activity with New Yorkers

#245

Post by hiq »

antonios wrote: post #232
PragmaticPulp wrote: post #31

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…

Cryptocurrency "in general" obviously isn't deflationary, given that one can create a new cryptocurrency with a simple code fork. But Bitcoin is, no?

As commenters hinted at in a previous thread, the price is a measure of the combination of demand and supply. The mechanics of Bitcoin only address the supply side. OP hinted at the demand side: if a new cryptocurrency were to become more popular, then Bitcoin could lose value.

Re: Bitfinex and Tether required to end all trading activity with New Yorkers

#246

Post by throwaway4good »

antonios wrote: post #232
PragmaticPulp wrote: post #31

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…

Cryptocurrency "in general" obviously isn't deflationary, given that one can create a new cryptocurrency with a simple code fork. But Bitcoin is, no?

Which Bitcoin?

Re: Bitfinex and Tether required to end all trading activity with New Yorkers

#247

Post by divs1210 »

exabrial wrote: post #54
divs1210 wrote: post #45

America lied to the world when it claimed each dollar was backed by gold. When the world figured it out and there was a bank run, the gold standard was "temporarily" put off by Nixon in 1970. Bitfinex just seems to be playing the same game America has always been playing.

Link?

1. https://en.wikipedia.org/wiki/Nixon_shock

2. https://www.wikiwand.com/en/Exorbitant_privilege

Re: Bitfinex and Tether required to end all trading activity with New Yorkers

#248

Post by codehalo »

cwhiz wrote: post #101
cdiddy2 wrote: post #47

Earlier quoted context omitted.

no its not. that is bad data from no name exchanges lying about their volume

Ha. The exchange reporting the highest volume is... Bitfinex. I believe you that Bitfinex would lie. Coinbase is reporting $210 billion daily volume. Is every market lying? Or are you just personally wrong?

But Coinbase doesn't trade Tether. What is the point you are trying make here?

Re: Bitfinex and Tether required to end all trading activity with New Yorkers

#249

Post by kragen »

Robotbeat wrote: post #220
kragen wrote: post #207

Earlier quoted context omitted.

If you live in a country with a highly functional banking system and no kleptocracy, Bitcoin is probably a bit puzzling unless you have family in Cuba. But it's not puzzling at all for those of us who live somewhere in the middle of the broad spectrum between Switzerland and Somalia, because most places have a little kleptocracy. Argentina is far from being "a failed state," but if you want to send US$500 abroad via…

Yeah I grant Bitcoin has value as a hedge against system failure. And maybe you’re right about the corner case it addresses being larger than I think. But so much of the hype of Bitcoin is in developed countries with very low inflation. And this should be tempered.

But I'm not talking about system failure, primarily; I'm talking about day-to-day life for somewhere between one third and two thirds of people, most of whom aren't using Bitcoin yet.

Re: Bitfinex and Tether required to end all trading activity with New Yorkers

#250

Post by ketamine__ »

devoutsalsa wrote: post #147
PragmaticPulp wrote: post #31

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…

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…

The returns you can make in securities over ten to twenty years is much more impressive than bonds.
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