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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

#221

Post by throwaway743 »

pcthrowaway wrote: post #204
Jabbles wrote: post #196

Earlier quoted context omitted.

> There's probably going to be a positive bounce just because markets don't move in straight lines. To emphasize the uncertainty in your "probably", I will point out that Luna didn't bounce: https://coinmarketcap.com/currencies/terra-luna/

Oh, it absolutely did, it crashed down to 4 zeros, then bounced back up to 3, roughly a +300%-1000% price movement over the course of a day. Of course, liquidity may have been incredibly low, but there were reports of people turning $40 into $400 in the aftermath of all this. Obviously, it crashed so much, the "bottom" was anyone's guess (well.. zero is the only one that makes sense now). But there are bounces all th…

Saw 6 decimal places for several candles (a close, open, and lows) on 1h timeframe the other day on one exchange. Then back up to 3-4 places.

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

#222

Post by brazzy »

jliptzin wrote: post #186
lumost wrote: post #129

Earlier quoted context omitted.

The fact that crypto is correlated with tech stock valuations should be raising eyebrows. Flash back a few years and the hypothesis that bitcoin would hedge inflation/fiat depreciation was standard. If BTC is correlated with equities, why not just hold productive equities?

I never understood the argument why crypto was a good store of value. Sure, it’s an ingenious new transactional system, making global payments mostly frictionless, etc, but that’s true whether the value of 1 Bitcoin is $1 or $50,000. If everyone’s just converting back to fiat anyway, only keeping enough BTC transiently to settle transactions, why hold it long term?

Greed.

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

#223

Post by snovv_crash »

eric_cc wrote: post #206
pirate787 wrote: post #203

Earlier quoted context omitted.

No assets though-- the only thing backing bitcoin are "greater fools"

Same fiat paper currency.

As I said on the other thread, there is a government with a police force backing fiat. They also guarantee they will buy the fiat currency and in exchange give you the continued use of the land you own. This is why it is called 'fiat', which means backed by law or authority.

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

#225

Post by rollcat »

sakopov wrote: post #194

What's everyone's thoughts on Gemini dollar? Gemini claims [1] that GUSD is FDIC insured up to $250K and audited [2] by a third party called BMP [3]. I also remember reading that Gemini is used by a number of IRA custodians, so I'd assume that they're pretty heavily regulated. [1] https://www.gemini.com/dollar [2] https://assets.ctfassets.net/jg6lo9a2ukvr/VOtyB4tBb0G4FVt6Eq... [3] https://www.bpm.com/

From [1]:

> GUSD is an Ethereum ERC-20 token

Last time I checked (EVERY time I checked), Ethereum was still based on proof of waste.

My thoughts are the same as they've been for many years straight, on everything crypto-"currency": it's a massive scam at best; more realistically, along with everything else in the proof of waste category, somewhere on the top 10 list of things most harmful to all life on Earth.

I don't understand how anyone even tries to mis-represent it as anything else.

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

#226

Post by snovv_crash »

matheusmoreira wrote: post #172
eric_cc wrote: post #156

Earlier quoted context omitted.

> BTC supply is capped. It's not. Yes, it is. They are not introducing BTC into circulation. This is verifiable via the blockchain. Banks creating IOU's or derivatives or whatever other abstraction they can come up with never generates new BTC. You'd hope that people foolish enough to work with such financial institutions would know the risk of possessing nothing but an instrument created by the bank. If you're unwil…

How much BTC exists in the blockchain is ultimately irrelevant. What matters is the amount of BTC actively circulating. If you deposit 1 BTC on Binance, then I can get your BTC in the form of a loan. I can even withdraw your BTC. Meanwhile, Binance records still say you have 1 BTC, they even allow you to trade with it. So there's really 2 BTC in circulation. That BTC is duplicated, it's in multiple places simultaneou…

And of course, the music keeps playing as long as Binance has liquidity.

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

#227

Post by mdoms »

caffeine wrote: post #197
lumost wrote: post #129

Earlier quoted context omitted.

The fact that crypto is correlated with tech stock valuations should be raising eyebrows. Flash back a few years and the hypothesis that bitcoin would hedge inflation/fiat depreciation was standard. If BTC is correlated with equities, why not just hold productive equities?

> The fact that crypto is correlated with tech stock valuations should be raising eyebrows Because fiat volatility in inflation/rate hikes respectively (ie the NPV of a USD) completely dominates the other factors. The volatile leg here is the fiat dollar, and everything denominated in it is whipsawing around as its value changes.

Unlike volatility in crypto markets?

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

#228

Post by bpt3 »

onlyrealcuzzo wrote: post #104
bpt3 wrote: post #99

Earlier quoted context omitted.

Did Citibank claim that its value was one-to-one backed with U.S. dollar reserves until they were caught not doing so? If not, they're probably not a relevant comparison to Tether.

Irrelevant because for >99% of depositors (NOTE - not total deposits) FDIC insurance will pay them out in the event of a bank run. For the vast majority of users - the difference in 1:1 backing and FDIC insurance is irrelevant. This is the reason you'll almost certainly never see a global bank run. It's the reason why we probably will eventually see a Tether bank run.

We agree, the person I was responding to doesn't seem to grasp that.

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

#229

Post by everfree »

sakopov wrote: post #217
everfree wrote: post #209

Earlier quoted context omitted.

It's a completely different ball game from UST. UST didn't even claim to be fully backed, whereas Gemini's third-party auditing accounting firm attests to GUSD being fully backed, under the scrutiny of the New York State Department Of Financial Services.

I wasn't claiming they're same. Was just wondering what the thoughts are on another stablecoin which claims to be fully backed by USD and how valid those claims actually are. Not sure why I'm getting downvoted.

I didn't assume that you were claiming that, and I didn't downvote you.

If I had to guess, people here are pretty sensitive to any crypto project being mentioned in the comments out of the blue, so that may be part of the reason for downvotes.

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

#230

Post by eric_cc »

minsc_and_boo wrote: post #190
emerongi wrote: post #131

Earlier quoted context omitted.

Most people investing in crypto just want to put in $1 and take out $2. Trying to educate people about cryptocoins is practically a waste of time at this point - they just don't care. Events like these are bad for Bitcoin on a pure value basis, for anyone invested in Bitcoin. That's just my opinion, though.

It's worse than that. Every dollar taken out of crypto is at the expense of someone else. Those coiners trying to change $1->$2 are heavily incentivized to lie, manipulate, and convince the naive in the public to put their $1 in. You could say this is everything with a public market, but with stocks or bonds you also have a legally binding contract to organizational assets that have value . Buybacks, issuing new unit…

You’re thinking about short term traders who want to accumulate more $USD. And sure, they are one actor in the bitcoin eco. Others use bitcoin as their primary currency. And still others would prefer BTC as their currency but, due to tax laws and infrastructure, are hindered from doing so.

You’re judging all current btc owners by bucketing them into one easy-to-consume cliche. Not all btc users give a shit about more fiat. Considering the buying power of fiat is a perpetual dip, it’s not exactly the best thing to accumulate.

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