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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

#721

Post by dragontamer »

frostwarrior wrote: post #665
alexk307 wrote: post #652

Earlier quoted context omitted.

They can be sued if they claim that they hold more assets than they are issuing. If you tell everyone that it's a dollar per coin, and suddenly there are 5 billion coins, you better have $5 billion to your name somehow. Not sure if there have been similar lawsuits in the crypto world yet.

For that to be true, that coin needs to abide to the same laws as real currency. If I say that "1 dollar = 1 virtual thingy" and suddenly there are a lot of virtual thingies and their price fall, then what's the crime aside me personally being a lying f*ck that can´t be trusted anymore? I don't see how "legitDollarCoins" is legally more legit than, say, lootboxes.

Turns out that lying to people on a large scale is a crime named 'Fraud'.

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

#722

Post by Danidada »

aeyes wrote: post #575
piva00 wrote: post #441

Earlier quoted context omitted.

Argentina has a pretty strong black market of USD, capital controls there didn't stop people from hoarding dollars as a stable currency.

But the black market has black market exchange rates. You can probably get something a little more reasonable on the open crypto market.

it's pretty much the same. Black market and crypto market are arbitraged between them so the price of one isn't too different from the other

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

#723

Post by cersa8 »

searchableguy wrote: post #151
adhesive_wombat wrote: post #30

The fact that they've been minting billions of tether without collateral should make it abundantly obvious that this isn't a stablecoin and never had been. Anyone can pretend to have a peg in the good times, that doesn't mean there's really a peg or that the peg will remain in bad times. And if you can't count on the peg in bad times, it's not a stablecoin. If you've been honestly working on the assumption that it is…

I believe tether will be back above .99 and stay there at the end of the week. Free pizza on whoever is wrong.

You're downvoted because people want to see it burn. But yes, the peg is already very close to stable now. Enjoy your pizza's.

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

#724

Post by sgjohnson »

LegitShady wrote: post #516
austhrow743 wrote: post #120

Earlier quoted context omitted.

Financial speculation is a zero sum game. These "victims" were hoping to gain from the loss of others just like the supposed crypto VCs that have made out well. They're not victims just the losers.

the eame is true for bernie madoffs scam but nonetheless his customerd were victims.

Madoff was awfully honest when compared to crypto scammers.

75 cents on the dollar were recovered. When a crypto scam finally gets pulled off, the suckers get closer to 0 cents on the dollar.

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

#725

Post by rawoke083600 »

comex wrote: post #34
smingo wrote: post #21

Earlier quoted context omitted.

There is a correlation between BTC and GPU / graphics card price. And there's the stupid quantities of energy devoted to mining. At some point, processing bitcoin will become uneconomic. It will then be unspendable, and the price will then drop to zero.

If blocks aren’t being mined fast enough, the difficulty level automatically goes down, resulting in a higher reward for the same hash rate. So in theory, processing bitcoin should never become uneconomic.

Yes, apart from everyone's views on crypto itself.

As a programmer or system designer I urge everyone (who hasn't already) look at the "system design" of bitcoin ! It's beautiful and elegant, like a self-correcting organism ! Ja sure it's not perfect, but dammit it's a hell of a lot better than what I could have come up with :)

I'm of course ONLY talking about the system-design components here: (difficulty, mining, minting rate, consensus, ledger etc)

YMMV

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

#726

Post by carlosdp »

This title is... wrong.

It's entirely normal for stablecoins to fluctuate in minor ways like this [1], even USDC (which is literally backed by actual US dollars in a bank account) fluctuates +- 1 cent regularly. This is because these prices come from a variety of exchanges trading these currencies, with different supply pools.

Arbitrage remediates this very quickly (Tether, at time of writing, is at $1.00). Not defending Tether, it's backing is definitely sketchy, but there's no indication it's in trouble at the moment, and this being on the front page is incredulous to me since it seems to be just some random dudes pulling up Google Stocks and speculating?

[1] https://www.coingecko.com/en/coins/tether (look at 14d window)

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

#727

Post by sgjohnson »

matwood wrote: post #518
namdnay wrote: post #109

Earlier 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…

> 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.

I've got extremely financially literate friends who are adamant that 30-year variable rate mortgages are 0 risk.

It's not that they don't assess the risk, but the excuses are always "Inflation will eat it away", "There's no way EURIBOR can climb so high I won't be able to afford payments" and "Negative equity? In this housing market?"

Makes me shiver. Especially now that 12 Month EURIBOR rate is above 0%.

Sure, a mortgage is 0 risk if you're buying yourself a home for the next 30 years AND have the cash to buy it outright. If you're buying a financial product, perhaps you should reconsider, because it shouldn't be both. Your primary residence is not an investment.

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

#728

Post by [deleted] »

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…

[deleted]

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

#730

Post by ryanSrich »

tomerv wrote: post #338
ryanSrich wrote: post #108

Earlier quoted context omitted.

Right. It’s fairly trivial for the exchanges to disallow a sell order for a stable below a certain price. That’s an obvious thing they would do if things start to really spiral here.

That's exactly the kind of thing that would cause everyone to lose confidence in a coin.

More the exchanges imo. Similar to Robinhood halting orders on GameStop.
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