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$3B in Bitcoin was sold in a last-ditch attempt to save UST from collapse

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Re: $3B in Bitcoin was sold in a last-ditch attempt to save UST from collapse

#161

Post by loceng »

eric_cc wrote: post #92
loceng wrote: post #78

Earlier quoted context omitted.

What functionality was different between Bitcoin and Luna? Is Luna not run off of Bitcoin? So if Luna could function as a Ponzi scheme, why doesn't Bitcoin inherently have that same capability or function embedded into it? Or is there something preventing that from happening with Bitcoin? Confused.

Terra (token LUNA) is its own chain. Trillions of brand new LUNA tokens were minted within the span of a day or so rendering the token worthless. This is due to the way LUNA was tied to the algorithmic stablecoin UST. It was a true ponzi. BTC's max supply is capped and the release schedule of new coins is fixed and predictable. There is no possible way that trillions of new bitcoins could suddenly be created.

So I don't think this point proves they're different functionality - other than the single factor of with more controllers then "printing" a bunch of coins wiping out the value decided by the market isn't easily possible?

It's this single point of failure ("one" controller vs. distributed to diversify risk) that you're stating is what makes it a true Ponzi vs. Bitcoin?

Re: $3B in Bitcoin was sold in a last-ditch attempt to save UST from collapse

#162

Post by Karunamon »

NovemberWhiskey wrote: post #154
Karunamon wrote: post #145

Earlier quoted context omitted.

Because there's no such thing as unbacked BTC. You either have the UTXOs pointing at an address you hold the keys for, or you do not. If someone loans you BTC, the supply of BTC has not increased.

All bitcoin is "unbacked". There's no intrinsically useful asset behind bitcoin. Your private key is just a bundle of bits. Bits are so abundant as to be worthless.

You know good and well what was meant, and that isn't it. Stop it.

Re: $3B in Bitcoin was sold in a last-ditch attempt to save UST from collapse

#163

Post by tromp »

eric_cc wrote: post #69
joosters wrote: post #4

"Sold" It's hard to show that they really sold these coins. Certainly, the LFG transferred the coins to some different exchanges. But did they truly sell them? If I was running a dodgy ponzi scheme and saw it collapsing catastrophically, I don't think I'd be throwing good money after bad trying to futilely patch it up. Much better to stash the remaining assets away somewhere and personally cash out later on. Also, “I…

> 'this is good for bitcoin' A total ponzi scam coin crashed. This IS good for Bitcoin. Bitcoin is not Luna nor is it one of the thousands of other garbage scam coins. The faster those coins are proven scams the better. Too many people falsely equate "Bitcoin === Crypto".. or "a fan of bitcoin is a fan of all crypto". So I'd bounce this back to you: How is Luna's Ponzi crash NOT good for bitcoin?

Next you will be suggesting that Tether crashing will be good for bitcoin...

Re: $3B in Bitcoin was sold in a last-ditch attempt to save UST from collapse

#164

Post by jpmattia »

JumpCrisscross wrote: post #141
jpmattia wrote: post #115

Earlier quoted context omitted.

> hold some cash and hold some US treasuries. Pocket the interest. Become rich. Not getting what you're saying here: Only banks should have that privilege?

> Only banks should have that privilege? Yes, in exchange for the privilege of money creation you need tight regulations and public disclosures. Banking left unregulated turns into this mess time and time again. You'd think people would be more disciplined about betting private money creators. But they aren't. They never are. Particularly not when their neighbor is showing orders of magnitudes of paper gains. This wa…

> Banking left unregulated turns into this mess time and time again.

And yet, regulated banking also turns into a mess time and time again.

Re: $3B in Bitcoin was sold in a last-ditch attempt to save UST from collapse

#165

Post by jonnydubowsky »

ChrisClark wrote: post #27
datalopers wrote: post #24

Earlier quoted context omitted.

> The current bubble is definitely over though Why do you say “over”? I see BTC reaching $20k this summer and then falling to <$10k as miners fold.

I mean it's not going back up to $60k. The bubble is over, but it's only the start of a longer bear market, so yeah, it can go much lower.

There have been massive advancements in the use of various options, futures and other structured products specifically designed to increase optionality for Bitcoin miners to weather bear markets without closing up shop.

This is definitely a proving ground and only those mining operations with the most resilient strategies will survive.

Many will continue to thrive.

The future outlook on the crypto markets enters a new era towards the end of this year.

Fidelity is introducing cryptocurrency investment services to all of its 401K investors, every company 401k, across the $2.4 trillion in 401(k) assets they represent (in 2020, or more than a third of the market at the time).

They will allow individuals to allocate up to 20% of their portfolio to cryptocurrency, for those who participate.

Re: $3B in Bitcoin was sold in a last-ditch attempt to save UST from collapse

#166

Post by Quinner »

caymanjim wrote: post #101
jpmattia wrote: post #81

Earlier quoted context omitted.

> Only 3.87% of Tether was backed by dollars For comparison: Citibank had only 11.73% Tier 1 capital in their 2021 report: https://www.citigroup.com/citi/investor/quarterly/2021/ar20_... Couldn't find a breakout of their Tier 1, but it includes high-quality credit items as well, so actual dollars is well below 11.73%. So in other words: SiliconAngle.com is writing clickbait and doesn't understand modern banking.

Real banks practice fractional-reserve banking, where they are required to hold a percentage of assets as cash or central bank deposits. It's well-regulated and diversified. It's audited. Individual account holders' deposits are insured (FDIC in the US). This is all well-known and understood and reliable. Runs can still happen, shady accounting practices can still happen, and sometimes banks fail. Sometimes they fail…

In the US, the required reserve ratio has been 0% since March 2020. I personally wouldn't view the traditional financial system as about as trustworthy as things get.

Re: $3B in Bitcoin was sold in a last-ditch attempt to save UST from collapse

#167

Post by vmception »

vkou wrote: post #121
vmception wrote: post #26

Earlier quoted context omitted.

By 2032? We need new songs, “you just got Do Kwon’d” instead of “Mt Goxxed”

Just as a reminder about how Mt Gox played out - it looks like all the people who lost money on it will receive 1:1 fiat-denominated compensation for their losses, Mark Karpeles won't serve a day in prison, and is likely to walk away with ~3 billion worth of BTC[1]. Who'd have thought that failing to operate a bitcoin exchange is a thousand times more lucrative than actually operating one! [1] If Mark owed you a bitc…

Because they took so long that the remaining assets value when up 300x ($100 - $30000)

Any way, believe it when I see it

Re: $3B in Bitcoin was sold in a last-ditch attempt to save UST from collapse

#168

Post by NovemberWhiskey »

eric_cc wrote: post #157
NovemberWhiskey wrote: post #154

Earlier quoted context omitted.

All bitcoin is "unbacked". There's no intrinsically useful asset behind bitcoin. Your private key is just a bundle of bits. Bits are so abundant as to be worthless.

Same with paper fiat currency.

I know? The point is: neither bitcoin nor fiat currencies are asset-backed. In both cases, there are commercial entities that offer accounts where you can deposit the "thing", and the "thing" is then loaned to someone else, and this is done for some kind of valuable inducement.

The question is: why is one called fractional reserve banking, a behavior that is acknowledged to increase the money supply, and the other one called "oh no this is definitely not increase of the money supply, it's just you relinquishing custody of your bitcoin and why would you do that, there's no reason you'd ever do that".

Re: $3B in Bitcoin was sold in a last-ditch attempt to save UST from collapse

#169

Post by NovemberWhiskey »

Karunamon wrote: post #162
NovemberWhiskey wrote: post #154

Earlier quoted context omitted.

All bitcoin is "unbacked". There's no intrinsically useful asset behind bitcoin. Your private key is just a bundle of bits. Bits are so abundant as to be worthless.

You know good and well what was meant, and that isn't it. Stop it.

Actually, no, I literally have no idea what you meant - by all means, please amplify!

Re: $3B in Bitcoin was sold in a last-ditch attempt to save UST from collapse

#170

Post by TomSwirly »

vmception wrote: post #33
gjvc wrote: post #19

Earlier quoted context omitted.

>Also, “In a sense, the market is going to take that as kind of bullish.” - a.k.a. the standard 'this is good for bitcoin' quote, applicable whatever the news is! Good observation. I may not be Warren Buffet, but it angers me greatly to see this kind of moronic chatter masquerading as informed opinion on finance or market dynamics.

Sure, it’s a commodity and trades like a commodity. Anything that stops a supply from overwhelming demand results in an increase in price. Commodities traders accept the seasonality of their assets, and arent perma-bulls, with the exception of metals traders. Bitcoin inherits a mixture of stock traders and metals traders sentiment, where perma-bulls mentality of “number go up forever” is present but less warranted. T…

Oil and gas are vitally useful. They have actual value to make things and move things and power things.
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