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Tether starting to lose its peg too, after Terra did
531–540 of 976 posts
Re: Tether starting to lose its peg too, after Terra did
#532Earlier 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…
> (particularly NFTs, which seem to be 99% scams)
What is the 1% you think aren't scams?
Re: Tether starting to lose its peg too, after Terra did
#533Earlier quoted context omitted.
Yup. I live in Turkey, and don't trust the local currency (Lira) and the government's power over banks to keep my dollars too. Crypto is the safest in that sense for me, and a stablecoin is ironically more trustworthy than my country's currency in general. Yet I don't trust USDT or UST so I'm on relatively more trustable USDC or BUSD.
It seems to me that some gold coins would work even better in this situation (for longer term savings, not something you move in and out every month). Did you consider this? An honest question.
Where can I download gold coins?
Re: Tether starting to lose its peg too, after Terra did
#534Earlier quoted context omitted.
it's much easier to con a greedy person. And you had to be very greedy indeed to convince yourself that 20% interest is a safe investment
> And you had to be very greedy indeed to convince yourself that 20% interest is a safe investment I think there is more nuance that this. People have been burned by many 'safe' investments over the years (housing, stocks) that they incorrectly view the risk profile as similar so look for higher returns. Much has been written on how we under appreciate actual risk, especially in 'safe' investments. There's also some…
Where greed comes in is where people dive into a market precisely because it is going up like crazy, which you only know after it goes up like crazy, then when it takes a down turn, hang on too long because they don't want to give up that expensive thing, then finally sell in a panic.
Buying high and selling low is a sure path to being poor.
Re: Tether starting to lose its peg too, after Terra did
#535Re: Tether starting to lose its peg too, after Terra did
#536Earlier quoted context omitted.
If you put your money in some risky 'investment' that you don't fully understand and lose you made a bad decision, you are not a victim. It's like if you burn your money in a Las Vegas casino.
Gambling is an addiction, and doesn’t just come down to poor judgement. There’s a short circuiting that occurs in the pleasure centre that we simply haven’t evolved to handle properly. It’s why even if you’re the most seasoned, calm, financially secure and stoic of people, if I told you that you suddenly won $100M with clear proof, you’d almost shit yourself in excitement, your heart would race. None of us are immune…
> you’d almost shit yourself in excitement, your heart would race
You need to watch "Being Ned Devine" if you have never seen it.
Re: Tether starting to lose its peg too, after Terra did
#537Earlier quoted context omitted.
> many poorer and financially illeterate people have been tricked I’m sorry, but it’s worse than that. Whenever I’ve said “Tether is a scam waiting to blow up, and the evidence is obvious”, none of my smart peers had anything to say, either. The BTC price is hells high by this fake USD money printer. At least people are collectively waking up. Brrrr.
I have been saying this for over five years and never had even an attempt at a rebuttal. Most people in crypto with a clue simply accept it as a fact. USDT needs to die for the market to have any sensibility at all. Six years ago daily usdt volumes would not break 3 percent of bitcoin trade volume. Now they routinely break three hundred percent. It is an indisputable scam and needs the flush it so richly deserves. An…
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Re: Tether starting to lose its peg too, after Terra did
#538Earlier quoted context omitted.
The religious (for a lack of better word as it is a religion to believe that cryptocurrencies are inherently better than other assets (outside NFTs) but they do believe that if you read twitter/reddit) people are hodling but all the 'saner' people I know went out in december. There was enough writing on the wall to know that 2022 would not be a good year for some assets (and it's just beginning). Only the real believ…
You're perfectly describing the sunk cost fallacy. The naifs who overcomitted on a "guaranteed win" investment can't walk back from it because that would mean giving up on a lot (e.g. 50% or more) of their investments, which often as you said isn't money they really had "lying around" (even your retirement fund isn't really disposable once you actually need to retire on it). The failure to achieve the promised growth…
I think the prevalence and scale of criminal activity through crypto was under appreciated in the mainstream.
Let’s be real, much of the market activity is money laundering, ransomware and other payoffs, and Chinese people bypassing currency controls.
It’s no coincidence that China cracked down on miners and the price dropped a few months ago. It’s plain as day now that with Russia being removed from the internet and most markets, buy-side demand for crypto is sinking.
Re: Tether starting to lose its peg too, after Terra did
#539The speculation in this thread is silly.
While Tether is certainly opaque (you could say shady), it's incredibly doubtful that it's unbacked to a significant extent. Even if it's only backed at 50% (which would be really shocking to me), it would take 39B$ to flow through the system to actually cause a depeg. That's very unlikely, and just the logistics of it means it would leave a lot of time to Tether to clear the air.
Consider that being "nakedly" unbacked (no underlying assets) in any meaningful capacity would qualify Tether's leadership for a quick trip to prison — as they've repeatedly said they were fully backed.
The real risk is them sitting on "commercial paper" (short term debt) that is now worthless or significantly discounted. I still doubt they would have lost more than 50% of reserves this way.
I think it's also interesting that SBF (FTX's founder) is fairly confident in Tether (of UST he said months ago "we know how this ends"). He seems better informed than most, and it seems unlikely to me he'd stake his company (which has extensive dealing with Tether) on a system that cannot be sustained.
I have no chip in this fight, and honestly, I do agree Tether is riskier than alternative, which is why I've never even held it. But UST and Tether are vastly different beasts in term of risk profiles.
Re: Tether starting to lose its peg too, after Terra did
#540Earlier quoted context omitted.
It seems to me that some gold coins would work even better in this situation (for longer term savings, not something you move in and out every month). Did you consider this? An honest question.
Where can I download gold coins?
You compare the convenience of a download against having an asset with a few millenia of history in your physical possession (which is not without its own risks) and pick your poison.