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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

#321

Post by lfmunoz4 »

seoaeu wrote: post #276
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.

You have it backwards. The trillions of tokens were created because people lost trust in it. Specifically, the loss of trust instigated the price drop from $1 to ~98¢. That's what started the collapse. Only afterwards did the "death spiral" of minting of more tokens, which degraded trust, which decreased the price, which drove more minting, etc. happen

No post body was provided.

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

#322

Post by hypertele-Xii »

j245 wrote: post #278
DonHopkins wrote: post #252

Earlier quoted context omitted.

>In a sense, the market is going to take that as kind of bullish. The Levenshtein distance from bullish to bullshit is only 3.

And the distance between love and glove is only 1.. who cares ?

This is actually a decent joke, buried under a dismissal.

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

#323

Post by mcguire »

arcticbull wrote: post #267
lkrubner wrote: post #263

Earlier quoted context omitted.

"everything is a bit oversold right now on negative emotions" No!!! The Fed is raising rates. That is reality. That is not an emotion. That is absolute economic fact. Inflation is high and will remain high for at least a year (maybe longer). The period from 2008 to 2022 is going to be remembered as an abnormal period when we experienced abnormally low rates. The low rates fueled speculation, and bid up certain stocks…

> Inflation is high and will remain high for at least a year (maybe longer). Is it? Month over month inflation numbers are only slightly elevated, in the annualized 3% range. This isn't particularly high - the high inflation already happened, it's over. CPI and PPI numbers both came in good. PPI of particular note, services were up 0% month over month, and commodities 1.3% for a blended 0.56% (in line with expectatio…

"If the hikes play out, we'll land around what, 2-3% for the fed funds rate? That's low, historically."

But it's not the 0.1% that drove money out of other asset classes (i.e. bonds) because they couldn't generate any returns.

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

#324

Post by moistly »

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.

Wow. Talk about destroying any credibility you’d hoped to hold onto. Total foot-gun action.

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

#325

Post by mcguire »

spywaregorilla wrote: post #292
lkrubner wrote: post #263

Earlier quoted context omitted.

"everything is a bit oversold right now on negative emotions" No!!! The Fed is raising rates. That is reality. That is not an emotion. That is absolute economic fact. Inflation is high and will remain high for at least a year (maybe longer). The period from 2008 to 2022 is going to be remembered as an abnormal period when we experienced abnormally low rates. The low rates fueled speculation, and bid up certain stocks…

> The era of low rates is over. It is possible that you might live another 100 years and never again see a 14 year stretch where rates average as low as they did from 2008 to 2022. The interest rate is currently at 1%. In the 80s it hit 20%. I expect it'll go negative in the next 20 years.

The inflation rate also hit 13.55% in 1980 and didn't go much below 6% between 1973-1982.

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

#326

Post by [deleted] »

snovv_crash wrote: post #223
eric_cc wrote: post #206

Earlier quoted context omitted.

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.

[deleted]

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

#327

Post by vageli »

snovv_crash wrote: post #223
eric_cc wrote: post #206

Earlier quoted context omitted.

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.

Governments have demonstrated that they do not have to accept their own currency [0] and have demonstrated a willingness to drive the value of their currency down. [1]

[0]: https://en.wikipedia.org/wiki/2016_Indian_banknote_demonetis... [1]: https://en.wikipedia.org/wiki/2018%E2%80%932022_Turkish_curr...

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

#328

Post by kristopolous »

orangepurple wrote: post #242
snovv_crash wrote: post #218

Earlier quoted context omitted.

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

That's not the point here. It's behaviorist.

Prices stay changed because the beliefs change.

If people had thought this was a sane and reasonable move that didn't really affect things the price would quickly return despite the quantity increasing.

The believed durability of the token changed

No matter what strategy is to be used to try to repeg it, it will only work if there's faith in the price.

Price isn't a thing it's a relationship between people about a thing

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

#329

Post by warkdarrior »

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…

That is correct. And, fundamentally, this is possible because the Bitcoin chain is not the only ledger out there tracking BTC. Each (centralized) exchange has its own internal ledger, tracking how much BTC its customers have.

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

#330

Post by meowkit »

overtonwhy wrote: post #305
eric_cc wrote: post #90

Earlier quoted context omitted.

LUNA minted trillions of brand new tokens 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.

If a majority of the miner pool decides to make a change the change is made. That's how decentralized concensus works right?

Well, not quite.

If a majority of miners fork their clients away from the bitcoin code repo by removing the coin cap, they would be creating a "new bitcoin". If the inter-subjective consensus of users also decide to use this new bitcoin it will be the defacto. Otherwise it will just be another fork (call it Bitcoin NoCap) like bitcoin cash, bitcoin diamond, bitcoin gold, etc.

The original "bitcoin" network (before the cap removal) would still propagate by whoever has the chain history.

The reality is that any attempts to split the chain to a state without a cap, at least with the current cultural consensus at this time, will result in a dead chain after a short period as people sell off the coins on the new fork.

https://www.investopedia.com/tech/history-bitcoin-hard-forks...

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