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Temporary pause of Bitcoin withdrawals on Binance

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Re: Temporary pause of Bitcoin withdrawals on Binance

#451

Post by namaria »

DebtDeflation wrote: post #247
planb wrote: post #199

Earlier quoted context omitted.

No, because energy is not free.

Energy expended to mine BTC in the past is a sunk cost and so is irrelevant to the discussion. In the future, if the price of energy required to mine a BTC is below the value of the BTC there will be an incentive to mine BTC. There is no equivalent incentive in the opposite direction. You can convert energy to BTC, you can't convert BTC to energy.

What happens if the value collapses bellow the point where it's profitable to mine it then? Wouldn't this only reinforce the collapse as miners flee the system? Then once it goes below a threshold where it would be trivial to attack it and take it over it's a free for all for the remaining market value and that would be the coup de grace...

Re: Temporary pause of Bitcoin withdrawals on Binance

#452

Post by namaria »

SantalBlush wrote: post #297
ethbr0 wrote: post #217

Earlier quoted context omitted.

> "My [product] would be perfect if only I could convince humans to stop acting like humans," is the original sin of bad [technologists] fixed that

There was recently an article posted to HN [0] about a startup founder doing this very thing, blaming his customers for behaving like humans. >I was fighting human nature and losing. >Everyone swears they will eat right and exercise, but most don’t. Everyone agrees they need to spend less to be financially secure later, but most won’t. Our users were telling us they would use ContractBeast to achieve those long-term…

Selling sugar is one of the biggest businesses out there. Has been for centuries...

Re: Temporary pause of Bitcoin withdrawals on Binance

#453

Post by blep_ »

piva00 wrote: post #149
mmastrac wrote: post #126

Earlier quoted context omitted.

I recall walking through an airport this year and seeing Crypto ads everywhere. That was my shoeshine boy moment (1) (1) https://www.businessinsider.com/how-to-spot-stock-market-bub...

I visited Brazil recently (3-4 months ago), I got into cryptocurrency-talk or some shitcoin peddled by cashiers, Uber drivers, waiters in some restaurants, acquaintances that aren't tech-savvy at all, etc. That's when it downed on me how big this whole thing got outside of internet chatter, it downed how many vulnerable people are exposed to the fallout of a crypto implosion.

("dawned")

... but yeah. It's depressing. Countries with already bad economic conditions (like "we literally don't have functioning currency" level, not the things US residents complain about) seem particularly susceptible to it.

Re: Temporary pause of Bitcoin withdrawals on Binance

#455

Post by fddhjjj »

RC_ITR wrote: post #439
fddhjjj wrote: post #391

Earlier quoted context omitted.

Can you provide a decision rule that distinguishes financial services from financial engineering? I do not feel as confident as you seem that the group of things called “crypto” will not be useful for financial services.

My definition: Financial engineering is the quantitative isolation and amplification of financial risk/reward, usually through leveraged/synthetic derivative products. There's no perfect source, but you can see similar definitions here [0] [1] [2] To give you a crypto example of this, Aave is financial engineering, because it allows users to make a bet that they can execute high-volume short-duration trades that yiel…

Strong parallels between your definition with “isolation” and that offered by freemint in terms of decomposition into elements.

The nuance makes sense on its face. Although I don’t trust my own judgement of what impacts the real economy and what is just shuffling of decomposed elements of risk and reward.

Re: Temporary pause of Bitcoin withdrawals on Binance

#456

Post by namaria »

olalonde wrote: post #310
jmoak3 wrote: post #278

Earlier quoted context omitted.

> MtGox being the most infamous example. I was there for it. I mined my first coins in late 2011. Few people want to run their local node (server), few people want to point their wallet at their own node, and fewer people want to run code they've compiled themselves. If you aren't running your own node you are relying on someone else's. As a mass adoption decentralized trust-less technology for transacting, bitcoin h…

I'd say you have a more black-and-white vision than me. While it's not perfectly decentralized, e.g. some users do delegate their trust to centralized services for convenience or security, it is still more decentralized than fiat where (digital) self-custody is simply not possible. Decentralization and trust are a spectrum, not a binary. Even compiling the software yourself wouldn't get you 100% there [0]. I also fee…

>It is disrupting the most entrenched and powerful "status quo" there is on Earth. We're talking about global banking, global finance, powerful governments, etc.

Quite the opposite. It's getting disrupted by rich, powerful people, who are rocking it as hard as they can to disabuse common people of the notion that they have any alternative.

Re: Temporary pause of Bitcoin withdrawals on Binance

#457

Post by namaria »

achenet wrote: post #358
nradov wrote: post #340

Earlier quoted context omitted.

False. Fiat monetary systems are built on a state monopoly on violence. Trust is merely a byproduct. You are required to pay taxes in the local fiat currency, and if you fail to pay then the government will eventually seize your assets by force, or perhaps put you in jail. This is a feature, not a bug, and it generally works fairly well in practice as long as the government is at least minimally competent.

This. The original purpose of money is to enable to government to quantify precisely how much of your stuff it will take each tax season.

The original purpose of money is seignorage, the difference between face value and actual value of the currency. It doesn't get better then printing hundred dollar bills that get out of circulation - almost pure profit.

Taxing in kind is way better, it's inflation proof.

Re: Temporary pause of Bitcoin withdrawals on Binance

#458

Post by ericmay »

namaria wrote: post #447
ericmay wrote: post #425

Earlier quoted context omitted.

From what I gather, and certainly someone may come in with a much better explanation or refutation is that Bitcoin is in a sense a finite resource (let's just look at the mechanics right now) and if appetite for Bitcoins increases you can't make more of them. If a central bank is inflating a currency, it means each year that more of that currency exists than it did previously, so people can effectively bid for resour…

Prices don't rise 'due to inflation'. Inflation is just another name for price rise. This 'transmutability' you speak of is called currency. Bitcoin has some but very little compared to cash. Also the so-called 'deflacionary' nature of bitcoin, supposedly caused by the supply cap assumes a constant or growing demand for it, which is far from assured. Bitcoin only needs to collapse once to become worthless forever, th…

Prices rise for more than one reason. For example marble is more expensive because it’s more difficult to find and mine than it was in the past (just a contrived example). But prices also rise due to increases in money supply.

I agree that Bitcoin is a poor currency compared to fiat currency, but conversely a dollar is a very poor store of wealth while Bitcoin is looking like it may be a good store of wealth. The confusion comes when you (not you specifically) don’t recognize that you can assess the utility and value of these “things” across various traits. Gold is a decent store of wealth, but a very bad currency. Stocks are great at producing and storing value and are highly liquid but awful currencies.

I’m not a Bitcoin advocate. I’m a neutral investor. You are correct in my view that if Bitcoin collapses it may become worthless forever. We have examples of this happening with fiat currency as well, though, so it’s not a unique trait of Bitcoin.

Diversification and asset accumulation are what I focus on. Bitcoin could turn out to be totally worthless. So could Amazon stock. So could GBP.

Re: Temporary pause of Bitcoin withdrawals on Binance

#459

Post by [deleted] »

namaria wrote: post #447
ericmay wrote: post #425

Earlier quoted context omitted.

From what I gather, and certainly someone may come in with a much better explanation or refutation is that Bitcoin is in a sense a finite resource (let's just look at the mechanics right now) and if appetite for Bitcoins increases you can't make more of them. If a central bank is inflating a currency, it means each year that more of that currency exists than it did previously, so people can effectively bid for resour…

Prices don't rise 'due to inflation'. Inflation is just another name for price rise. This 'transmutability' you speak of is called currency. Bitcoin has some but very little compared to cash. Also the so-called 'deflacionary' nature of bitcoin, supposedly caused by the supply cap assumes a constant or growing demand for it, which is far from assured. Bitcoin only needs to collapse once to become worthless forever, th…

[deleted]

Re: Temporary pause of Bitcoin withdrawals on Binance

#460

Post by SV_BubbleTime »

rspeele wrote: post #171
cryptoanon wrote: post #146

Earlier quoted context omitted.

I love how cocksure people are of Tether's decline. Do you believe reading a bitcoin (or IOTA) whitepaper is sufficient to understanding market structure because I get the sense that you do not understand it. If you are so sure, feel free to short Tether.

Is there a place one can short Tether, that can also be trusted to pay out on a short position in the event of a catastrophic Tether collapse? I.e. not a crypto exchange?

See how tech savvy your local bookie is?
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