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Tether starting to lose its peg too, after Terra did

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Re: Tether starting to lose its peg too, after Terra did

#521

Post by [deleted] »

FeepingCreature wrote: post #203
stevekemp wrote: post #186

Earlier quoted context omitted.

Yeah it's a tricky one. It seems obvious that "digital money" is going to be very useful in a lot of ways, and in the future is almost certain to appear. There was a very brief period when bitcoin might have been the start of such a thing. When companies were adding support for it, and people were spending 200+ bitcoin on pizza, actually doing useful things like transferring money internationally, etc. But these days…

A deflationary currency was never going to be viable as money.

[deleted]

Re: Tether starting to lose its peg too, after Terra did

#522

Post by robjan »

pyinstallwoes wrote: post #263
Slartie wrote: post #216

Earlier quoted context omitted.

There is an upside of holding USDT (although not a monetary one): it serves as a "stable" store of value on non-USD-banked exchanges when trading other cryptos. Especially right now, with the market going down rapidly, a lot of people probably sold coins on the way down with the intention of buying back into the market at a later point in time. A substantial number of these traders temporarily hold their value in USD…

That’s instant 0.024 profit… Easily crash by loading 10,000,000 arbitrage for free $200k grab sums. This is a domino effect.

Any large purchase will likely push the price up

Re: Tether starting to lose its peg too, after Terra did

#523

Post by seanhunter »

jmyeet wrote: post #455
shafyy wrote: post #55

Earlier quoted context omitted.

> If you've been honestly working on the assumption that it is, then you deserve to lose your (real) money to some crypto VCs on an island somewhere. The sad reality is that many poorer and financially illeterate people have been tricked by VCs and other grifters into this with billions of dollars spent in advertising. So, no, they don't deserve to lose their money to these assholes. These assholes need to be prosecu…

I actually hate people disavowing themselves of responsibility here. While there is definitely some shady stuff in Crypto (particularly NFTs, which seem to be 99% scams), there's a certain level of personal responsibility required here. People saw the meteoric rise of Bitcoin and got a serious case of FOMO. Everyone wanted to be on the next Bitcoin. This, ultimately, is the American Dream: to get rich by doing nothin…

> I actually hate people disavowing themselves of responsibility here.

I believe that everyone should do their own research etc but there's a reason there are laws against fraud. There are a lot of people who would get taken advantage of by the unscrupulous if we just decided that it's all about personal responsibility. Yes people should not have the expectation that they will get rich quick but there is also no reason to allow them to be blatantly ripped off either.

If tether haven't maintained the level of reserves they need to maintain the peg (and honestly I can't see how the possibly could have adequate reserves) then it seems a pretty straightforward case of fraud.

Re: Tether starting to lose its peg too, after Terra did

#524

Post by Spooky23 »

MereInterest wrote: post #483
geogra4 wrote: post #371

Earlier quoted context omitted.

You can stake crypto to make more crypto too!

I can use my Monopoly money to get more Monopoly money, too.

That’s the root of the scam!

One of the big appeals from crypto people is essentially “all money is bullshit, so buy my bullshit”. The even nuttier people would position Bitcoin as gold.

Re: Tether starting to lose its peg too, after Terra did

#525

Post by cinntaile »

lottin wrote: post #459
cercatrova wrote: post #424

Earlier quoted context omitted.

I have a hard time feeling sorry for these people. Sure, they may have gambling tendencies, but at some point, one must reckon with the consequences of their actions, and reap what they sow.

Not to mention that many of these supposed victims are arrogant assholes, whom I and others tried to warn in every possible way and we only got mockery and disdain in return.

It doesn't mean many of them are like that because you have dealt with some arrogant assholes. You dealt with a vocal group and that is usually a tiny minority.

Re: Tether starting to lose its peg too, after Terra did

#526

Post by [deleted] »

sbarre wrote: post #499
raiyu wrote: post #468

Earlier quoted context omitted.

The American dream is to make it through hard work, what you are referring to is simple greed and laziness and it’s been around since humanity attained consciousness.

> The American dream is to make it through hard work Now that's the actual con, or at least a pipe dream. Hard work is never enough. Luck plays a huge factor but few who get lucky, and then rich, will ever admit to that part.

[deleted]

Re: Tether starting to lose its peg too, after Terra did

#527

Post by greyhair »

bsenftner wrote: post #517
Rexxar wrote: post #214

Earlier quoted context omitted.

They deserve to lose and those who have 'tricked' them should be prosecuted. We can have both. Culpability of one side doesn't make the other side innocent victims. It's not bad people against good people, it's bad people everywhere in this situation.

There is also an amount of blame on our government and the shameful treatment of educating society. In a Capitalist driven country, as the USA is, the education system's complete lack of common sense financial literacy is a classic recipe for creating scams. I have a graduate economics degree. I seriously investigated bitcoin and crypto back in '07-'08. There is no "there" there. Cryptocurrencies use an artful abuse…

Rick Scott says there was no right to a free public education in the Constitution.

Ponder that for a while.

Re: Tether starting to lose its peg too, after Terra did

#528

Post by lupire »

pjc50 wrote: post #376
blackoil wrote: post #363

Earlier quoted context omitted.

For large players it is 2% instant return, and they just have to be early enough before Tether drops the ball.

The question which has to be asked here is: what do Tether's open market operations look like? Since they're roleplaying "be your own Federal reserve", they shouldn't have to transact at par against people who bought at a discount, they should be hoovering it up directly from the open market at a smaller margin.

That's the point. They can't buy open market because they are insolvent.

Re: Tether starting to lose its peg too, after Terra did

#529

Post by micromacrofoot »

raiyu wrote: post #468
jmyeet wrote: post #455

Earlier quoted context omitted.

I actually hate people disavowing themselves of responsibility here. While there is definitely some shady stuff in Crypto (particularly NFTs, which seem to be 99% scams), there's a certain level of personal responsibility required here. People saw the meteoric rise of Bitcoin and got a serious case of FOMO. Everyone wanted to be on the next Bitcoin. This, ultimately, is the American Dream: to get rich by doing nothin…

The American dream is to make it through hard work, what you are referring to is simple greed and laziness and it’s been around since humanity attained consciousness.

is that really the dream? I always thought it was just having a normal job, work 9-5 and come home to house/car/family

Re: Tether starting to lose its peg too, after Terra did

#530

Post by swalsh »

ekianjo wrote: post #479
FeepingCreature wrote: post #203

Earlier quoted context omitted.

A deflationary currency was never going to be viable as money.

there are still bitcoins being mined. where is it deflationary?

To me the issue is the supply of tokens is not correlated to the actual underlying supply of goods and services in the economy. Tokens should be minted/burned according to the fundumentals of the underlying economy. Hard to do with a single digital currency as there is a whole economy. But viable with ERC-20's, which can be turned into micro-currencies. The great thing about ERC20 tokens, is you can swap them pretty effortlessly. And on a chain like Avalanche, it's cheap and scalable.
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