Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Tether starting to lose its peg too, after Terra did

community.intercoin.org

Post reply on HN
Print view View original

801–810 of 976 posts

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

#801

Post by vmception »

shkkmo wrote: post #789
vmception wrote: post #754

Earlier quoted context omitted.

Generally Western people do not believe in Tether. People believe in it regionally. The counter argument is that Tether's growth is the exact same as USDC's growth and other stablecoin's growth, especially those that are structured in the exact same way, with 1:1 redeemability for fiat somewhere. Some of those, people like the level of validation they show, others have undermined trust and never show the level of val…

> Meaning that at one point and subsequently, Tether did match their leel of review, and at one point was backed 100%. Tether has had skepticism from the day it was created nearly 10 years ago, and a US authority got all the information was like "well that one time in 2018 we didn't like that". Tether is not 100% backed by dollars, it mostly is though. This is some serious spin and misinformation. I can't believe you…

CFTC, DOJ, and NY OAG

Yes, I was referring to the NY one, and I'm referring to how they were like "okay you went unbacked in 2018 and didn't disclose that to our standard, but at least disclose that its not USD". So now they paid a fine and disclose that. So at one point they were 1:1 USD, which is actually a major revelation because from 2014-2018 the same Tether FUD existed the same as now. In any case, now they aren't backed 100% USD, which is more relevant. Dollars and commercial paper isn't... horrible. Maybe they have a liquidity issue if 2/3rd of Tethers were attempted to be redeemed, maybe they don't.

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

#802

Post by eric_cc »

DebtDeflation wrote: post #404
iso1210 wrote: post #258

Earlier quoted context omitted.

It's the greater fool theory. I lauched at friends of my fatherinlaw back in 2018 when they were buying bitcoin at 15k. Obviously it popped. Today it's down 50% on ATH, but it's still more than double it's 2018 bubble level.

We will almost certainly see pre-2017 prices at some point.

Won't happen because USD buying power has gone down considerably since 2017 due to The Fed printing money out of thin air like there is no tomorrow.

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

#803

Post by s1artibartfast »

HWR_14 wrote: post #770
s1artibartfast wrote: post #750

Earlier quoted context omitted.

Where can I find my exact win rate at poker posted?

It should be pointed out that casinos are only required to post odds for perfect play in games that have skill (e.g. poker, blackjack). Therefore, your poker odds would be based on the rake.

Black Jack is playing against the house and you can calculate perfect play. Poker is played against peers and perfect play does not exist. I think poker is a lot closer to speculating on crypto or stocks. Companies can disclose their transaction fees but it is impossible to calculate your expected return on investment. This is why there's almost always terms of service or disclosure to that extent

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

#804

Post by redisman »

pjc50 wrote: post #325
sdgdfgsfdfgsdfg wrote: post #230

Earlier quoted context omitted.

The high buy volume at $0.98 is due to arbitrage. This is to be expected before the final crash. People are using the opportunity to net an instant 2% return. Buy $10M USDT at $0.98, redeem at Tether for $1, take home $200K of profit instantly. Thing is, this will only last until Tether runs out of liquidity. Then all bets are off.

> redeem at Tether for $1 Is the redemption window really open? That's something people have been extremely skeptical of.

They do it through exchanges. But what happens there is almost certainly just internal bookkeeping

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

#805

Post by eric_cc »

andy81 wrote: post #339
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…

Monero still tries to fit in this niche. The only thing it's useful for is financial crime though - if your problem is just making a payment you can do it in dollars relatively easily and safely.

> The only thing it's useful for is financial crime though

Privacy is only useful for crime?

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

#806

Post by eric_cc »

amelius wrote: post #304
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…

There should be a law that currencies are used for legitimate payments for more than X% and otherwise the currencies should be marked as gambling money. How to measure? I don't know, but I'm sure the IRS can come up with something.

> There should be a law

Because what we really need is MORE LAWS and more power for the government!! Think of the children!!

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

#807

Post by jjoonathan »

eric_cc wrote: post #771
Mvandenbergh wrote: post #472

Earlier quoted context omitted.

The reasons this is nonsense are twofold: First, I have never actually seen any comments here disavowing themselves of responsibility. It is always aimed at protecting others and this is rooted in the obvious fact that a very large number of people are not (and we do not expect them to be) experts in investment. That assets can go up or down is one thing, and nobody can be protected from that, but there is an extensi…

> people are not (and we do not expect them to be) experts in investment. So then they should stay out of the game. I totally disagree that we need a bunch of bullshit laws protecting people from poor decision making.

It's amazing the gymnastics people will do to shift responsibility off the supply side and onto the demand side. No, lying should not be rewarded. Ponzi schemes should not be rewarded. Currently, they are. Yes, we need more responsibility -- on the supply side.

Demand side already has responsibility and correct incentives: the fools have been parted from their money. Done.

This goes for small things, like NFT ponzis, and big things, like turning housing into an asset class.

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

#808

Post by thebean11 »

uniqueuid wrote: post #731
carlosdp wrote: post #726

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 defen…

The very chart you linked shows a dramatic increase in volatility over the last days. That surely points to increased stress tether is under.

Or it's just the result of a massive increase in volatility in the crypto market in general. I guess it depends what you mean by increased stress on tether.

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

#809

Post by onlyrealcuzzo »

Danidada wrote: post #796
onlyrealcuzzo wrote: post #742

Earlier quoted context omitted.

IIUC, it's quite easy in Argentina to convert pesos to dollars and store them in an Argentine bank with a US correspondent bank - ditto for Euros and Yen. There are many downsides to Tether. Why is it worth the risk in comparison? Additionally, there's simply not enough money in Tether compared to the $80B to talk about. It's a distraction.

Again, it's a matter of resources. Not everyone can travel to US and have the money to open a bank account there. Anyway to "easily" convert from pesos to US dollars (which you have to use some financial instruments which aren't trivial for the average citizen) you need to justify all your earnings which not everyone can do because people try to avoid taxes as much as possible. For instance, most devs I know that wor…

It sounds like it would be worth it to get a US bank account and be paid in USD at that point - assuming developers are making $50k+ USD per year. Virtually all non-small employers would prefer that as well.

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

#810

Post by JumpCrisscross »

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…

Totally agree. We have a regulated financial system. Jumping out and then asking for a public bailout is ridiculous. Those injured should absolutely sue the promoters who encouraged them. But I am strongly against engaging public resources to prosecute.
Post reply on HN