291–295 of 295 posts
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When this crypto thing turned into a ponzi scheme, it was already guaranteed that many people would lose everything. We can only hope it collapses earlier so there are fewer victims.
It was never anything else
Bitcoin requires its users collectively believe it has value and others will accept it for some value - this is necessary in order for mining to be profitable thus hashing power be dedicated to protect the blockchain.
A ponzi scheme requires that more people will be buying in at increasingly higher prices.
Notice the former does not assume anything about constantly rising prices. The original vision of Bitcoin actually works better if the price itself remains stable (not rising).
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"Within days", when your country is being attacked now is a significant delay. No one is saying that the banking system failed Ukraine, but there are times when speed is essential and any delay is costly. Cryptos value is shown in such cases.
Ukraine's Twitter account tweeted a link to an official webpage with fiat donation instructions February 24, the day the invasion began: https://twitter.com/Ukraine/status/1496817739419295751 ( https://archive.ph/Q1y7l ) It tweeted a BTC address on February 26, but it took a little while before people were sure they hadn't been hacked: https://twitter.com/Ukraine/status/1497594592438497282
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i think what they're trying to say is that these firms just look like traditional trading firms, not like defi. opaque backroom billion dollar handshakes go wrong, contagion spreads, ltcm/2008 style. main difference- there's no government bailout coming.
There'll be a bailout. They don't let the rich folks go poor.
> Prominent crypto hedge fund Three Arrows Capital has defaulted on a loan worth more than $670 million. Digital asset brokerage Voyager Digital issued a notice on Monday morning, stating that the fund failed to repay a loan of $350 million in the U.S. dollar-pegged stablecoin, USDC, and 15,250 bitcoin, worth about $323 million at today’s prices. In other words, the $670 million that 3AC defaulted on was ~50:50 USDC…
It's possible if you are bullish on bitcoin to borrow bitcoin, deposit at a futures exchange such as bitmex or I think FTX and then take a long position on bitcoin of up to 100x the amount staked. !00x is generally unwise but if you are bullish bitcoin you might borrow a bitcoin and then go 3x long on the futures making your net position 2x long. It could even make you a lot of money if you got the timing right. The…
Voyager was offering the public high interest rates eg. 9% on USDT and 6% on bitcoin and then had to find somewhere to put that money that promised to pay more than that interest so they could make a profit. (rates https://www.investvoyager.com/blog/voyagers-june-interest-ap...)
>3AC said they would pay a high rate of interest, and Voyager took their word for it– because in the minds of Voyager’s principals, there was no other outfit with 3AC’s pedigree that could absorb the amount of capital that needed to be shipped out the door. https://entrepreneurshandbook.co/number-three-511f334d8fae
So basically they lent the money because it was other people's money and they could make a profit as an intermediary.