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TerraUSD crash led to vanished savings, shattered dreams

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Re: TerraUSD crash led to vanished savings, shattered dreams

#91

Post by adrr »

dustyharddrive wrote: post #37
ceeplusplus wrote: post #12

Earlier quoted context omitted.

The biggest scam Stablegains pulled was to advertise taking USDC (most trusted stablecoin, backed by real, audited reserves), as to imply they were providing USDC lending yield, when in reality they converted your money to UST funny money.

It’s worth mentioning USDC (Circle) reserves have never been audited, and they don’t even claim to hold dollars anymore ( https://archive.today/2021.07.12-223553/https://www.ft.com/c... ): > Until March 2020, the attestations said USDC was backed by dollars, held in government-backed US depository institutions. After that, they said the reserves were held at institutions and in “approved investments”, but did not giv…

I always wondered if the USD based stablecoins just hold each other's coins in lieu of cash. It's like an infinite money glitch if it's circular.

Re: TerraUSD crash led to vanished savings, shattered dreams

#92

Post by Tao3300 »

sumy23 wrote: post #10
sbf501 wrote: post #2

And an avalanche of "I told you so". Don't forget that part.

People are so smug when they say “I told you so.” It really bothers me. On every negative story about crypto, so many people comment “hur dur financial regulation dur”. But that’s so easy to say after the fact. If these people really could foresee these events happening, then they could have made a lot of money by taking short positions. That would be a lot more impressive to me than taking cheap opportunities to fee…

The smugness is appropriate with Terra though.

This is the guy at the helm in the face of criticism that the whole thing could implode: https://www.twitter.com/stablekwon/status/146489797779372851...

Anyone exhibiting or associating with that level of hubris drove up the smugness of skeptics when it imploded.

Re: TerraUSD crash led to vanished savings, shattered dreams

#93

Post by anon2020dot00 »

dubswithus wrote: post #90
anon2020dot00 wrote: post #78

Earlier quoted context omitted.

Maybe most people already have a job which they spend time and get money in return, so why would they spend even more of their free time in pursuit of a little bit more money? Life is more than money anyways

People are naturally greedy. Plenty of developers sacrifice their relationships, health, and appearance for high comp packages.

Most people have the attitude towards crypto that it is an over-hyped technology that is just sucking-up people's time and attention and so the best thing to do is to ignore it and hope it goes away as soon as possible so as to free-up people's time and attention towards more worthwhile things.

Re: TerraUSD crash led to vanished savings, shattered dreams

#94

Post by dubswithus »

anon2020dot00 wrote: post #72
dubswithus wrote: post #63

Earlier quoted context omitted.

People that are anti crypto are of strong conviction. I am sure they wish they could have their Michael Burry moment — if only it wasn’t for the damn volatility.

Maybe people don't want to play a zero-sum Greater fool game. There are better ways to spend one's time.

Like spending many hours commenting on such topics on Twitter and HN?

Re: TerraUSD crash led to vanished savings, shattered dreams

#95

Post by gruez »

jmyeet wrote: post #85
yunohn wrote: post #53

Earlier quoted context omitted.

> It's not that they want to get rich quick. They just want to make a lot of money really fast. In their defence, I feel like this is fuelled by media FUD as well as FOMO from the ever-widening wealth gap. A combination of inflation and unaffordable housing along with stagnant wages means that even with everyone in the family working jobs, you can’t even afford a yearly vacation. If the wealthy elites don’t realise t…

I agree, which is why everyone who lives off an income rather than assets (which is ~99.5% of us) should be a leftist and support labor organization as that is the only thing that'll actually improve their material conditions. And I mean leftist in the actual sense, not a feckless liberal in the US Democratic Party sense who still ultimately exist to defend the capital-owning class. The so-called Great Resignation an…

>I agree, which is why everyone who lives off an income rather than assets (which is ~99.5% of us)

I think you're greatly underestimating how many people can "live off [...] assets". This page shows household net worth by percentile[1]. Based off that, you can probably live off investments starting at around the 90th percentile ($61k annual income with 5% withdraw rate), if you live modestly in a low CoL state. Once you get around the 95th percentile you can probably live comfortably in a high CoL state ($129k/year, translates to 87th percentile in california), and by the time you get to the 99th percentile, you can probably live as well as dual earner households with high paying careers ($555k).

[1] https://dqydj.com/average-median-top-net-worth-percentiles/

[2] https://dqydj.com/income-percentile-by-state-calculator/

Re: TerraUSD crash led to vanished savings, shattered dreams

#96

Post by dubswithus »

bandrami wrote: post #64
dubswithus wrote: post #29

Earlier quoted context omitted.

Surely if you believe crypto is coming to an end in the next few years there is some way to profit.

I could take bets on the next mass shooting, too, but I prefer not to make money off of some things that I can nonetheless statistically foresee.

I made 18k betting Trump would lose the presidency with Polymarket. I literally took money from the world’s biggest morons. Feel pretty good about that.

Re: TerraUSD crash led to vanished savings, shattered dreams

#97

Post by dubswithus »

anon2020dot00 wrote: post #93
dubswithus wrote: post #90

Earlier quoted context omitted.

People are naturally greedy. Plenty of developers sacrifice their relationships, health, and appearance for high comp packages.

Most people have the attitude towards crypto that it is an over-hyped technology that is just sucking-up people's time and attention and so the best thing to do is to ignore it and hope it goes away as soon as possible so as to free-up people's time and attention towards more worthwhile things.

Facebook welcomes our return.

Re: TerraUSD crash led to vanished savings, shattered dreams

#98

Post by KMag »

gruez wrote: post #68
makeitdouble wrote: post #51

Earlier quoted context omitted.

I think index funds are better seen as "savings" than "investments" in most people's mind.

Do people actually think this? ie. "it's not investing unless there's a chance of you making 10x returns"?

In my experience, it doesn't seem to be the chance of big returns, but rather the gut feeling of actively "doing something" to invest, vs. a very passive simple strategy of dollar cost averaging a low-fee broad index ETF. I think particularly in popular American culture, we often feel like it's more moral to actively make every penny, and have an aversion to passively earning money. Landlords are demonized, etc.

Re: TerraUSD crash led to vanished savings, shattered dreams

#99

Post by jpgvm »

sumy23 wrote: post #10
sbf501 wrote: post #2

And an avalanche of "I told you so". Don't forget that part.

People are so smug when they say “I told you so.” It really bothers me. On every negative story about crypto, so many people comment “hur dur financial regulation dur”. But that’s so easy to say after the fact. If these people really could foresee these events happening, then they could have made a lot of money by taking short positions. That would be a lot more impressive to me than taking cheap opportunities to fee…

People don't take short positions against highly volatile assets like crypto because sometimes the market can remain irrational longer than you can remain solvent. The risk of a short position greatly outweighs the benefit even if you are right and if you use instruments that reduce the risk they are very timing sensitive.

Was it always going to zero? Yes. Could I tell you when that was going to happen? Nope. Therefore no short opportunity other than going for a momentum trade.

Most of the people saying "I told you so" have held the exact same line of reasoning on the way up, at the peak and on the way down. The only people that have decided things are different are the people selling crypto, i.e the people that bought and and yes, "We told them so".

Re: TerraUSD crash led to vanished savings, shattered dreams

#100

Post by [deleted] »

gruez wrote: post #95
jmyeet wrote: post #85

Earlier quoted context omitted.

I agree, which is why everyone who lives off an income rather than assets (which is ~99.5% of us) should be a leftist and support labor organization as that is the only thing that'll actually improve their material conditions. And I mean leftist in the actual sense, not a feckless liberal in the US Democratic Party sense who still ultimately exist to defend the capital-owning class. The so-called Great Resignation an…

>I agree, which is why everyone who lives off an income rather than assets (which is ~99.5% of us) I think you're greatly underestimating how many people can "live off [...] assets". This page shows household net worth by percentile[1]. Based off that, you can probably live off investments starting at around the 90th percentile ($61k annual income with 5% withdraw rate), if you live modestly in a low CoL state. Once…

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