241–250 of 310 posts
I was shocked the other day on the Ethereum PoS announcement by the energy consumption per transaction metrics. It threw the whole crypto market into a new light for me. BTC is using over a megawatt hour PER transaction! That's almost 5000 miles in a Tesla model 3. BTC is using about 2/3 of the power of every data center on the planet! Many, many people have been imprisoned or executed for creating less societal harm…
I was shocked the other day on the Ethereum PoS announcement by the energy consumption per transaction metrics. It threw the whole crypto market into a new light for me. BTC is using over a megawatt hour PER transaction! That's almost 5000 miles in a Tesla model 3. BTC is using about 2/3 of the power of every data center on the planet! Many, many people have been imprisoned or executed for creating less societal harm…
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You do know that Coinbase has a $50k a day withdrawal limit? A lot of doomsday scenarios leave out this important detail when talking about a hypothetical bank run.
That's a USD limit. Since Coinbase is FDIC insured, I expect they have the cash-reserves to actually survive a run denominated in dollars. Even if Coinbase itself goes under, FDIC will make your dollar value whole (up to $250,000 per banking institution) You know, the whole benefit of being in the USD. The made up rules of society that provide stability in times of crisis.
If you are transferring tokens in and/or converting tokens to cash, I don't believe those transactions would meet the criteria to be covered by FDIC at that point. I might be wrong on that assumption, but FDIC is only deposit insurance, not withdraw insurance, and its under very specific terms.
I was shocked the other day on the Ethereum PoS announcement by the energy consumption per transaction metrics. It threw the whole crypto market into a new light for me. BTC is using over a megawatt hour PER transaction! That's almost 5000 miles in a Tesla model 3. BTC is using about 2/3 of the power of every data center on the planet! Many, many people have been imprisoned or executed for creating less societal harm…
Satoshi is a supervillain who created the most effective weapon of mass destruction the world has ever seen. Unstoppable and fueled by the inherent greed of mankind.
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> will run out of dollars and this whole machine will fall apart Sounds like it could be three things: 1) Their USD standard is bunk. If you're on a commodity money - or secondary exchange money - standard then you can only issue as many certs as there are units of that money in your reserves. With the XAU standard, you can't just mint gold certs without gold underlying it. That's not how any of this works! 2) They j…
I think it's nothing as dramatic as (1). Just that instead of holding USD currency, they're holding equivalent "commercial paper"[1]. This means that everything will be ok as long as they can sell these bonds when the time comes. But if any of the held bonds fail or decrease in value, Tether will be in serious trouble. I could see Tether becoming insolvent if/when there is another financial crisis that reveals some o…
If your currency is backed by some kind of non-cash instrument, then what you've actually got is some kind of ETF like structure, not a currency qua exchange currency.
Earlier quoted context omitted.
That's a USD limit. Since Coinbase is FDIC insured, I expect they have the cash-reserves to actually survive a run denominated in dollars. Even if Coinbase itself goes under, FDIC will make your dollar value whole (up to $250,000 per banking institution) You know, the whole benefit of being in the USD. The made up rules of society that provide stability in times of crisis.
Coinbase and FDIC insurance seems tricky at best... I think it only covers deposits made via cash from federally recognized institutions, and will only be covered if you leave it as cash. If you are transferring tokens in and/or converting tokens to cash, I don't believe those transactions would meet the criteria to be covered by FDIC at that point. I might be wrong on that assumption, but FDIC is only deposit insura…
I was shocked the other day on the Ethereum PoS announcement by the energy consumption per transaction metrics. It threw the whole crypto market into a new light for me. BTC is using over a megawatt hour PER transaction! That's almost 5000 miles in a Tesla model 3. BTC is using about 2/3 of the power of every data center on the planet! Many, many people have been imprisoned or executed for creating less societal harm…
I was shocked the other day on the Ethereum PoS announcement by the energy consumption per transaction metrics. It threw the whole crypto market into a new light for me. BTC is using over a megawatt hour PER transaction! That's almost 5000 miles in a Tesla model 3. BTC is using about 2/3 of the power of every data center on the planet! Many, many people have been imprisoned or executed for creating less societal harm…
Then you'll need to moralize air conditioning and entertainment and everything else too. These use cases aren't the problem, dirty energy is the problem. Fix the source of energy. We need to do that anyway. Bitcoin and the Nakamoto Consensus is a breakthrough that provides a secure, global, uncensorable, decentralized store of value. With defined rules that can't be changed on the whims of a central actor. The energy…
Most people don't seem to realize that a store of value is stable.
Today ( just as in 2017 till the pandemic) has proven that BTC/crypto is not stable.
It has more similarities with a MLM scheme ( not really backed by anything ( eg. Stable coins - tether), unregulated, limited withdrawals of your money on the exchange).
I don't believe anyone actually thinks BTC is safer while it's influenced by memes instead of actual market conditions. Well, except if the reason is greed and personal liability ofc.
Ps. The only reason to have some crypto coins is for diversifying your portfolio. If you consider the risks carefully, as with everything else.
Earlier quoted context omitted.
Then you'll need to moralize air conditioning and entertainment and everything else too. These use cases aren't the problem, dirty energy is the problem. Fix the source of energy. We need to do that anyway. Bitcoin and the Nakamoto Consensus is a breakthrough that provides a secure, global, uncensorable, decentralized store of value. With defined rules that can't be changed on the whims of a central actor. The energy…
> Bitcoin and the Nakamoto Consensus is a breakthrough that provides a secure, global, uncensorable, decentralized store of value. Most people don't seem to realize that a store of value is stable. Today ( just as in 2017 till the pandemic) has proven that BTC/crypto is not stable. It has more similarities with a MLM scheme ( not really backed by anything ( eg. Stable coins - tether), unregulated, limited withdrawals…
If you zoom out on USD, it's not exactly stable either. It has greatly decreased in value due to inflation over the years. Or worse, if you zoom out on bolivars and other currencies. Anyone in country with hyperinflation, or at risk of it, very much appreciates a permissionless global store of value.
Earlier quoted context omitted.
Coinbase and FDIC insurance seems tricky at best... I think it only covers deposits made via cash from federally recognized institutions, and will only be covered if you leave it as cash. If you are transferring tokens in and/or converting tokens to cash, I don't believe those transactions would meet the criteria to be covered by FDIC at that point. I might be wrong on that assumption, but FDIC is only deposit insura…
If an FDIC insured account says "$100,000" in it, and then Coinbase goes under... you get $100,000 from it. Maybe in a few months after bankruptcy court figures out the details. But... yeah, the FDIC insurance definitely covers the stated balance.
Coinbase could shut down converting crypto to cash at any time. There is no promise or guarantee that they have to allow cash exchanges or deposits, since they're basically buying and selling crypto on your behalf.