Why do media still frame the TerraUSD story as unique? A similar story awaits all of crypto. Sure, the particulars will vary a bit, but at the end of the day the assumptions that underlie their perceived “value” will crumble just as easily.
TerraUSD crash led to vanished savings, shattered dreams
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Re: TerraUSD crash led to vanished savings, shattered dreams
#182Let's not forget that 10 years ago the largest banks all failed. [1] [1] https://www.investopedia.com/articles/economics/09/financial... .
Maybe an important distinction that these were the largest investment banks and not retail banks. I want them to be allowed to fail. As I learn more I’m not so sure.
WaMu failed.
Re: TerraUSD crash led to vanished savings, shattered dreams
#183This is good. Hopefully all of those scammers and grifters who "invested" in cryptocurrency will end up bankrupt. I have zero empathy for their problems. Hopefully their misfortune will serve as an object lesson in the importance of making good choices.
I think I read this comment in 2018 already
You’re probably right. Who knew the cheap money from the Fed would just keep flowing? Looks like the party is finally over.
Re: TerraUSD crash led to vanished savings, shattered dreams
#184> Keith Baldwin, a 44-year-old surgeon who lives outside New Bedford, Mass., saved $177,000 during the past decade. Last year he took his savings and bought USD Coin, putting it in a crypto account that paid a 9% annual yield. A surgeon saved 177k over 10 years? Something else might be going on here.
It's probably lifestyle inflation ( https://www.investopedia.com/terms/l/lifestyle-inflation.asp ), where spending increased in proportion or in excess to rises in income. A surgeon in the US wrote about colleagues who exhibited this behaviour in a blog (source: https://www.kevinmd.com/2019/03/why-many-doctors-live-payche... ).
My surgeon brother told me that many older surgeons can't "afford" to retire, often because they lost loads of money in investment schemes (and probably coupled with an unwillingness to accept a cutback in lifestyle).
You probably lose a lot of basic savvy when you're insulated from "the real world" for decade after decade (undergrad, medical training, residency, surgical training, high paid private consultancy, etc).
Re: TerraUSD crash led to vanished savings, shattered dreams
#185Blockchain technology is heavily underrated. With this dip, it scared away all of the scammers, paper handers, and generally people that did not contribute to this space. This is the time where innovation will thrive rather than "get rich quick schemes".
Right, because after all these years, and virtually infinite funding, the killer app / use case is just around the corner!
Re: TerraUSD crash led to vanished savings, shattered dreams
#186And 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 have showed conviction by staying away and investing in companies/assets that actually generate returns.
Taking a short position in illiquid assets likely to go to zero would be almost as stupid as going long. You are also highly likely to lose your money as most schemes to short use some other ‘stablecoin’ and you’d have to be able to time the bubble. That’s not a sensible position and just as risky as being long.
Why insert the hur dur?
Mentioning financial regulation in the context of unregulated get rich quick schemes is totally appropriate and people have been warning about these scams for a long time.
Re: TerraUSD crash led to vanished savings, shattered dreams
#187Earlier quoted context omitted.
He also bought a mansion and a few cars and divorced and gambled a lot in Vegas and online casinos and hot stock tips? What's amazing is that this person put his name in the WSJ as a gullible fool who can now be targeted by spearphishing scams (including that Crypto Recovery scam that has was even spamming HN recently) and shunned by his peers and potential clients.
Yeah I would not want this guy getting near me with anything sharp if I could avoid it.
Warren Buffet is probably not a great surgeon though?
Re: TerraUSD crash led to vanished savings, shattered dreams
#188Let's not forget that 10 years ago the largest banks all failed. [1] [1] https://www.investopedia.com/articles/economics/09/financial... .
Retail bank accounts are FDIC-insured. It was capped at $100k per account before 2008 (it's currently $250k), but spreading $177,000 across two accounts isn't a huge burden.
Now for the Ukrainian, betting whether crypto or the hryvnia is more stable is an actual dilemma.
Re: TerraUSD crash led to vanished savings, shattered dreams
#189Earlier quoted context omitted.
In my experience, it seems that a lot of people have an un-stated gut feeling that "doing something" must out-perform passive dollar cost averaging a broad low-fee index ETF. If we came up with some obfuscated mathematical dance that, if un-obfuscated, were obviously dollar cost averaging in a broad-based low-fee index ETF, I think it would be more popular. Edit: There are also lots of investment strategies where peo…
Heh, I think that idea has a lot of promise. Casinos might offer some guidance here given how good they are at making games with fairly straightforward negative odds seem enticing. We need some sort of responsible investing vehicle that includes gamification, intermittent reinforcement, and a tiny chance for a huge payoff.
Sounds like the lottery.
The problem is, when dealing with a zero (or negative) sum game, having a few big winners means you have lots of little losers, or a few big ones.
Re: TerraUSD crash led to vanished savings, shattered dreams
#190> Keith Baldwin, a 44-year-old surgeon who lives outside New Bedford, Mass., saved $177,000 during the past decade. Last year he took his savings and bought USD Coin, putting it in a crypto account that paid a 9% annual yield. A surgeon saved 177k over 10 years? Something else might be going on here.
He also bought a mansion and a few cars and divorced and gambled a lot in Vegas and online casinos and hot stock tips? What's amazing is that this person put his name in the WSJ as a gullible fool who can now be targeted by spearphishing scams (including that Crypto Recovery scam that has was even spamming HN recently) and shunned by his peers and potential clients.
Especially for the surgeon, why would you volunteer to be interviewed for this? Unless you actually have $2M net worth and it's a big troll, you're not going to show your friends you were in the WSJ. You want your patients to know?