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Celsius acknowledges $1.2B hole in balance sheet

coindesk.com

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Re: Celsius acknowledges $1.2B hole in balance sheet

#301

Post by tim333 »

Nursie wrote: post #145
dcolkitt wrote: post #117

One thing to note is that while Celsius, a centralized and opaque yield platform, collapsed, not a single major DeFi protocol failed during a period of enormous stress. MakerDAO, Aave, Uniswap, Curve, Lido and Compound all had perfect 24/7 uptime with zero losses due to unrecoverable debt. This pretty clearly strengthens the case for pure and transparent DeFi, where anybody can inspect the health of the protocol or t…

> not a single major DeFi protocol failed during a period of enormous stress Was Terra/Luna/Anchor/Whatever not a DeFi protocol?

I guess Terra/Luna was mostly a DeFi algorithmic stablecoin. Which wasn't a very good idea.

Re: Celsius acknowledges $1.2B hole in balance sheet

#302

Post by tim333 »

tsimionescu wrote: post #275
aaaaaaaaata wrote: post #257

Earlier quoted context omitted.

> are unlikely to ever come back. This is you projecting, to some extent.

I very much doubt that people who have bought BTC at $60k, or the people cashing out of USDT while they still can, will want (or be able to) bring their money back into this crazy ecosystem. Especially so as the price of energy increases and global warming becomes ever more apparent, keeping many afraid of investing in such energy wasteful endeavors.

History suggests that isn't so. The crypto winters last a couple of years then folks are back.

Re: Celsius acknowledges $1.2B hole in balance sheet

#303

Post by tim333 »

yomkippur wrote: post #40

What's sad is that some pension funds have exposure to Celcius. Imagine teaching for decades only to find your retirement pension is reduced because the manager thought it was a good idea to put your money into a ponzi scheme

I think it was an equity investment so it's more that the manager thought it would be a good idea to profit from said ponzi scheme.

Re: Celsius acknowledges $1.2B hole in balance sheet

#305

Post by aaaaaaaaata »

tsimionescu wrote: post #273
aaaaaaaaata wrote: post #256

Earlier quoted context omitted.

Will we catch you right here next year, or the year after when it's at a new all-time high, saying the opposite?

At worst I may be silent if that happens, but I have never believed in the long term value of crypto, even when friends and family members invested.

> At worst I may be silent

Considering your expertise in the area, this sounds like "at best".

Re: Celsius acknowledges $1.2B hole in balance sheet

#306

Post by aaaaaaaaata »

trixie_ wrote: post #298
aaaaaaaaata wrote: post #289

Earlier quoted context omitted.

Investors can learn. USDT is no longer trusted — but still swapped around due to now-legacy exchanges denominating in it. Your other points are not true for many cryptocurrencies, and for the ones it is, there are plenty of players who don't hold your concerns — right, wrong, or indifferent, they exist.

You say it's not trusted and yet the most volume in crypto (around 46 billion) is being traded every day it. Are you sure you're not just in your own thought bubble?

Turkish Lira used daily after 75% inflation — maybe shit just isn't that simple?, when your daily workflows rely on (aforementioned) legacy systems.

Re: Celsius acknowledges $1.2B hole in balance sheet

#307

Post by aaaaaaaaata »

tim333 wrote: post #302
tsimionescu wrote: post #275

Earlier quoted context omitted.

I very much doubt that people who have bought BTC at $60k, or the people cashing out of USDT while they still can, will want (or be able to) bring their money back into this crazy ecosystem. Especially so as the price of energy increases and global warming becomes ever more apparent, keeping many afraid of investing in such energy wasteful endeavors.

History suggests that isn't so. The crypto winters last a couple of years then folks are back.

and yes, this point is an easy win, too — just go read all the "cryptocurrency is over" articles back to...2009 and such.

Re: Celsius acknowledges $1.2B hole in balance sheet

#308

Post by jrm4 »

tsimionescu wrote: post #229
jrm4 wrote: post #198

Earlier quoted context omitted.

Sure, I'll take it a step further. Any storage of your money that doesn't involve you fully controlling your own keys is stupid because it is literally antithetical to the entire purpose of crypto. If you want to let someone else hold on to your money for yield, great. Use something already established, ensured, and proven. But not crypto . Not your keys, not your crypto. How many times must it be said?

This only works if you use crypto as a store of value and even then it doesn't scale to any significant fraction of the population, for most coins. BTC and Eth, at least, are simply too slow for everyone to have their own wallet and do their own on-chain transactions, even if rarely, if we imagine they will ever reach some significant portion of the population. And LN doesn't solve this in any way, before anyone clai…

This flavor of criticism is odd to me, it seems to have a very rigid definition of "how many people" using as a measure of success and perhaps more perplexingly, presumes "the network will always be too slow," as if tech improvements on these networks isn't likely. It may not be BTC or ETH, but given fungibility (and perhaps, clever airdrops) it seems at least plausible, if not likely, that people will come up with "a fast enough network to get stuff done."

There may be one in the works now, I do have literal money on Pulsechain/PRC-20.

Re: Celsius acknowledges $1.2B hole in balance sheet

#309

Post by SahAssar »

silentsea90 wrote: post #286
oneoff786 wrote: post #166

Earlier quoted context omitted.

You think there’s a 50% gross margin on mining Bitcoin, after the price has fallen heavily, and we’ve entered a global energy crisis?

Difficulty adjustment takes care of reducing mining difficulty every 2 weeks based on hash power, so this should self correct

If the margins were that high then wouldn't it be reasonable to assume that no miners will stop mining but the margins will decrease?

The miners will mine as long as it is profitable since they need to recoup the costs of specialized hardware somehow.

Re: Celsius acknowledges $1.2B hole in balance sheet

#310

Post by pxmpxm »

tim333 wrote: post #299
pxmpxm wrote: post #271

Earlier quoted context omitted.

I've yet to have success explaining that very ex nihilo problem to crypto people* - even if you build out all of the last 100 years worth of financial system innovation, at the very bottom all it's doing is very efficient price discovery of people's Pogs collection. It will all fold as such. * anecdotal, but there seems to a strong inverse correlation between crypto enthusiasm and education in economics or finance. M…

US dollars are bits of paper you can exchange for stuff based on people's perception of their value. Cryptocurrency is virtual bits of paper that you can exchange for stuff based on people's perception of their value. There are some similarities there.

Actually not quite - dollars themselves are worth nothing, same way meters, or liters are worth nothing. They purely a convenience unit of measurement, so that a baker selling bread to a plumber doesn't first have to find flour mill that needs plumbing services to make the transaction.

Crypto is by design made artificially scarce, largely because people don't understand the first point. This is also why no one besides dark web ehm "shoppers" actually transacts with crypto.

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