21–30 of 219 posts
Getting my popcorn ready... This is the silliest human endeavor that somehow seems to attract a few smart people too.
As for whether or not any cryptocurrency will ever be stable and widespread enough to be usable in the western world remains to be seen.
In general, if you pick the all time high as a starting point for your "research" it's all the way down from there. Bitcoin's daily transaction volume is moving to second layer so the metric used is not very useful. More importantly, and I can't stress this enough, the FX value of a cryptocurrency is not directly related to the project's status (developer activity or security track record, etc) but it is correlated t…
An important harbinger of trouble to come is that the Tether (USDT) coin, which is supposed to be pegged 1:1 to USD, is now trading substantially below $1: https://www.bloomberg.com/news/articles/2018-10-15/dollar-pe... Billions of Tethers were printed seemingly out of thin air and used to purchase Bitcoin. It's part of the foundation of the house of cards that keeps Bitcoin at its current price: "Despite their modes…
USDT is a pegged-currency. It's often described as a stablecoin but that's not correct because it doesn't have an inbuilt stabilisation mechanism unlike Maker's DAI for instance.
The way it works is purely based on well known legal mechanisms that have no cryptoeconomic properties on its own. The issuer holds a USD balance at a bank, then commissions a receipt that proves their balance and issues an equal number of USDT. 1 USD = 1 USDT at issuance time and the trustworthiness of both the issuer, the auditor and banks involved.
The token itself is used to facilitate trading and many investors 'park' their gains in USDT while waiting for the market to reach a certain point or just in between trades, but that means that the token's FX value is set by the open market itself so if there are more buy orders than available USDT the price goes up and if there are more sell orders than demand the price goes down. Where this gets interesting is that some exchanges list assets based on the USDT fx and not USD which opens some arbitrage opportunities like we are seeing today.
For more info:
https://github.com/jpantunes/awesome-cryptoeconomics#stablec...
An important harbinger of trouble to come is that the Tether (USDT) coin, which is supposed to be pegged 1:1 to USD, is now trading substantially below $1: https://www.bloomberg.com/news/articles/2018-10-15/dollar-pe... Billions of Tethers were printed seemingly out of thin air and used to purchase Bitcoin. It's part of the foundation of the house of cards that keeps Bitcoin at its current price: "Despite their modes…
>Billions of Tethers were printed seemingly out of thin air and used to purchase Bitcoin. Do we know if it was BTC that was purchased? I have half a mind to think that people who were smart enough to buy decentralized and scare BTC are different than the people who would buy a centralized fiat coin Tether. The only people I know that use Tether are gamblers who are day trading alt coins. It is become more and more ap…
Yes. You can monitor the price and volume charts of BTC after a wild tether appears. For example: http://www.tetherreport.com
Bitcoin and similars are the biggest waste of computing power and energy in the history of the planet. It will be nice for the environment when this is all over.
Obviously you haven't heard of the NSA or the US Military.
An important harbinger of trouble to come is that the Tether (USDT) coin, which is supposed to be pegged 1:1 to USD, is now trading substantially below $1: https://www.bloomberg.com/news/articles/2018-10-15/dollar-pe... Billions of Tethers were printed seemingly out of thin air and used to purchase Bitcoin. It's part of the foundation of the house of cards that keeps Bitcoin at its current price: "Despite their modes…
I saw a couple of comments today about the price of USDT so I think it's worth while explaining how it works just in case anyone is interested in knowing more. USDT is a pegged-currency. It's often described as a stablecoin but that's not correct because it doesn't have an inbuilt stabilisation mechanism unlike Maker's DAI for instance. The way it works is purely based on well known legal mechanisms that have no cryp…
Earlier quoted context omitted.
Iunno, if i were a billionaire, the idea of having $50m under nobody’s control but my own that I can take anywhere, anytime, doesn’t exist anywhere else. I can’t do that with gold. Bank deposits are always available until they aren’t. But Coinbase can’t do this either.
Right, that's money laundering.