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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

#931

Post by vkou »

adhesive_wombat wrote: post #899
vkou wrote: post #456

Earlier quoted context omitted.

> But the entire point of Tether hinges on it being perceived as AAA. No, the entire point of Tether hinges on everyone pretending that it's AAA, and just letting the Tether money printer lift all crypto boats. Anyone paying attention knows its a fraud, but are happy to look the other way, because it's the reason BTC is $30K, instead of $600 right now. Sure, they'll lose whatever they have invested at the moment when…

> but if you can't predict when the music will stop, the smart move today is to keep playing. The smart move while the music is playing is to sell the tickets, not buy an instrument of your own. It's like selling spades during a gold rush.

If you can double your money every 6 months, and the music was playing for the past 3 years, you'd have been a fool not to play.

It's why bubbles grow. The optimal move for anyone but a precog is to keep playing, right up until the end.

Very few people in this case actually mint and sell tickets, most of them are hangers-on who are either hoping to dump to a bigger fool, or are also selling tickets (but are also utterly dependent on the music to keep playing.)

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

#932

Post by influxmoment »

ttul wrote: post #798
influxmoment wrote: post #658

Earlier quoted context omitted.

Tether and UST are not comparable. Tether is a token you can redeem for USD with a questionable past. UST is a project started by a scammer. An algorithmic stablecoin. A Ponzi uses a Ponzi to prop up the price. And then head scammer used personal money to keep the charade going

If Tether isn’t a Ponzi scheme, why have they never subjected themselves to a real audit on their reserves? You know the one thing that you’ll find in common with every Ponzi scheme? There is no auditing.

Still they are very different projects. UST is transparently a scam with slick marketing while Tethers real financial state is unknown but claims a plausible redemption scheme

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

#933

Post by gitgud »

whimsicalism wrote: post #693
gitgud wrote: post #679

Earlier quoted context omitted.

> Even if it's only backed at 50% (which would be really shocking to me) Is it shocking? Aren't traditional banks only backed by a tiny fraction of what they give out?

They don't claim to be fully backed.

I'm saying it's likely they only have a tiny fraction of backing, the GP was saying they would be surprised if it wasn't at least 50% backed.

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

#934

Post by danielmarkbruce »

nightski wrote: post #785
eric_cc wrote: post #771

Earlier quoted context omitted.

> 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.

That's not what the post you replied to said at all and you are being intentionally obtuse. There is a reason the SEC exists. It's not to keep people from making bad decisions.

https://www.sec.gov/about.shtml

Basically, it's exactly that.

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

#935

Post by danielmarkbruce »

cupofpython wrote: post #811
eric_cc wrote: post #771

Earlier quoted context omitted.

> 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.

this is about as logical as saying "just because we signed a contract doesnt mean I need to uphold my end of the contract. you should have known I wasnt going to be able to fulfill my end of our agreement" I agree with personal responsibility but not at the expense of communication. Imagine if every single person who moved a package was required to open the package and confirm the contents. It may be the only way to…

Regulation or lack of it doesn't fundamentally change contract law. So, it's not the same thing. People who say financial markets shouldn't be regulated are not saying you shouldn't be able to litigate.

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

#936

Post by danielmarkbruce »

rezistik wrote: post #857
eric_cc wrote: post #771

Earlier quoted context omitted.

> 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.

We need laws protecting people for malicious actors with significant funding who target people that lack knowledge on deeply technical topics like investing.

We might not. People could learn from the long history of people being conned. I know zero about cars - if a guy knocks at my door tomorrow telling me I can sign a contract and get a brand new porsche delivered next month for an upfront cost of $10k, my lack of car knowledge isn't a problem. It's a no.

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

#937

Post by danielmarkbruce »

diob wrote: post #855
eric_cc wrote: post #771

Earlier quoted context omitted.

> 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.

Yeah, let's eliminate all regulations. Some of you may die, but that's a risk I'm willing to take /s I mentioned it to another, but have some humanity and empathy for those less "smart" than yourself.

The empathy goes both ways. Many people who oppose regulation like this don't oppose it because they are happy for "dumb people" to lose money. They truly believe that there is so much regulation these days that people aren't faced with conmen often enough to wise up to it. A person offering you "product insurance" at the checkout is conning you. The car dealer is trying to con you. Anyone suggesting you can double your money fast is conning you. If you are a woman, there is a decent chance the random guy buying you a drink is just trying to bed you. It's useful to come across enough folks trying to con you so you realize it's a thing. Then when the guy proposing some complex financial proposition knocks at the door, you don't need to know anything about finance to know there is a good chance it's a con.

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

#938

Post by danielmarkbruce »

dikaio wrote: post #820
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…

You also didn’t mention his idiotic statement of equating the “American Dream” to getting lucky and getting rich when in fact the American dream is about having the opportunity to work hard, buy a home and have a decent life for you and your family.

Unfortunately it's not an idiotic statement. Look at all the people playing the lottery and buying crypto. It does appear to be the true american dream.

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

#939

Post by caladin »

jmyeet wrote: post #594
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.

This is propaganda based on a mix of the Protestant work ethic and stoicism in an effort to keep the populace compliant and malleable. This is why political parties are constantly in the business of creating wedge issues to distract people so they don't figure out their lot in life is determined by their material conditions.

Two back-to-back on-point comments. I appreciate you!

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

#940

Post by eru »

apcragg wrote: post #800
eru wrote: post #621

Earlier quoted context omitted.

There are only two ways to hold USD: physical cash and database entries at the Fed. The former is really inconvenient, especially if you want to transfer money. The latter is only available to a select few companies. Everything is else at most assets denominated in (= pegged to) USD. Does your critique apply to all these other categories as well? Why or why not?

"sure, my house's foundation is made of cardboard, but have you considered that the empire state building could also be destroyed in a large enough earthquake?"

Exactly! Great analogy.

This suggests that we need to look into the engineering details of a building (or peg arrangement) to determine whether we can trust it, instead of just declaring all building (or all pegs) 'nonsense'.

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