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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

#241

Post by eric_cc »

sha255 wrote: post #215
eric_cc wrote: post #130

Earlier quoted context omitted.

> it is merely extremely hard. Care to elaborate how it could be done? Even if it were to happen, which it could not, the chain would fork from the moment before the hack and continue on without the hack.

It’s interesting how cryptocurrency advocacy makes otherwise intelligent people discard all principles of engineering with forceful statements like “it’s impossible,” when the only thing realistically standing between someone and as much Bitcoin as they want is SHA-2 compromise. I’m amazed with the money in play that it hasn’t happened yet. It speaks to the strength of the SHA-2 suite (and, complicatedly for me, the…

“It’s impossible” - I agree it’s almost always too strong.

However, remember we’re discussing the creation of trillions of bitcoin. Even if it occurred, do you really believe the chain would remain? It would be forked. I just can’t imagine a chain being totally compromised and its users being okay with it - both would need to be true.

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

#242

Post by orangepurple »

snovv_crash wrote: post #218
eric_cc wrote: post #205

Earlier quoted context omitted.

> Luna crashed because people lost trust in it. No. It crashed because trillions of tokens were created rendering each token worthless.

Then why did the total Luna market cap go down? Surely if people still had trust it should have just diluted the token values?

Both can be true

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

#243

Post by tromp »

ItsMonkk wrote: post #51
onlyrealcuzzo wrote: post #29

Earlier quoted context omitted.

Why would miners folding cause Bitcoin to drop in value? The same amount of Bitcoin will be mined no matter what.

Not quite. Bitcoin difficulty adjusts every 2000 blocks, which typically happens every two weeks. If the hashrate drops, those blocks happen less often, so the adjustment happens less often. These past years the Bitcoin ASICs have been tremendously profitable, and as a result the demand for the hardware goes up, leading to huge profits for the hardware makers. These past few months have seen a drop in Bitcoin, which…

> Bitcoin difficulty adjusts every 2000 blocks

It's 6*24*7*2 = 2016 blocks, the number of 10 min intervals in 2 weeks.

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

#245

Post by mdoms »

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/

Is it a cryptocurrency? Then it's a scam.

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

#246

Post by NovemberWhiskey »

eric_cc wrote: post #236
NovemberWhiskey wrote: post #152

Earlier quoted context omitted.

Change to Bitcoin Core; hard fork; majority of miners and nodes move to new fork. The only reason we're not calling "Bitcoin Cash" by the name "Bitcoin" is that the last part didn't happen, right?

Consensus. Why would the majority people adopt broken bitcoin?

You asserted it was impossible; it isn't. It's merely, as I said, extremely hard.

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

#247

Post by parkingrift »

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?

If people react to the Luna ponzi by exiting crypto or not entering crypto, the price will continue to fall.

...hey, wait... that also sounds like a ponzi.

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

#248

Post by Animats »

This is puzzling. What did they do with the money? Buy back UST? Something else?

Vast numbers of LUNA were minted during the collapse. There are now 6 trillion LUNA outstanding, currently valued at $0.0002246 each. Apparently the algorithm trying to support UST did so by minting LUNA.

Does someone have a timeline of the collapse? All the data should be available on blockchains.

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

#249

Post by winkeltripel »

eric_cc wrote: post #124
matheusmoreira wrote: post #120

Earlier quoted context omitted.

Sure they can. You deposit 1 BTC, they loan it out to someone else. Boom, 2 BTC.

No. There is still 1 BTC in this scenerio. When you choose to deposit your 1 BTC you've lost custody of it and somebody else has gained possession of it. All you have is a promise that you'll get it back - which is not === BTC.

If it is close enough for a real bank in USD, it's probably okay for an exchange in bitcoins, right? If the bank/exchange maintains a 5% reserve, every unit of currency can produce a multiplier/velocity of 20. Bank loans substantially increase the ability of businesses to fund activity.

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

#250

Post by thebean11 »

woodruffw wrote: post #208
thebean11 wrote: post #178

Earlier quoted context omitted.

Why can't non-institutional actors achieve the same level of privacy? Seems like it would be much, much easier for smaller actors since they are dealing in much smaller amounts..

> Why can't non-institutional actors achieve the same level of privacy? Non-institutional actors are transacting over an immutable public ledger. Institutional actors are transacting via backchannels. In other words: the cryptocurrency transaction space is "schizophrenic": the traffic that supports high valuations is not settled on the chain itself, but via gentlemen's agreements. Non-institutional actors could do th…

> Institutional actors are transacting via backchannels.

As in, they are keeping funds on centralized exchanges? Users can do the exact same thing if they want, not sure I get your point.

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