Top stablecoins shed $7B in May as traders redeem tokens en masse

Post by [deleted] » Sun, May 22, 2022, 1:09 PM UTC

nostrademons wrote: post #89

faeriechangling wrote: post #80

Earlier quoted context omitted.

So we should ignore that crypto is being used a fraction of the time as much as financial products that are worth several times less, because global markets are large? Should every product have a 1 trillion plus valuation because global markets are large? I just never actually see evidence that crypto has taken over global finance or is well on its way to doing so.

The point is that it's not being used a fraction of the time, because you take small fraction of total humans on earth (7B+) and it's a larger number than a large fraction of total humans in the US (320M). There are 100M crypto users in India, for example - that's only about 7%, but 7% of 1.5B is a larger number than 11.8% (market share of JP Morgan Chase, the largest U.S. bank) of 320M. Worldwide, crypto users are a…

Post by jimmydorry » Sun, May 22, 2022, 1:13 PM UTC

puranjay wrote: post #159

delusional wrote: post #134

Earlier quoted context omitted.

> Why would anyone buy Tether at this point? There's zero upside potential, after all. Tether, and "stablecoins" in general are known as the casino chips of Crypto. A way to exchange more volatile crypto for what is supposed to be essentially dollars without creating a taxable event. Assuming crypto is still something people want to trade, that's still a valuable service. Tether isn't supposed to be an investment. It…

I think what OP meant was why would anyone hold Tether at this point instead of a more transparent and less fudded stabelcoin like USDC

Post by jimmydorry » Sun, May 22, 2022, 1:16 PM UTC

thematrixturtle wrote: post #237

wallaBBB wrote: post #111

Earlier quoted context omitted.

Chinese real estate companies are defaulting on their international bonds en masse and CN government has shown no interest in bailing them on that end.

Better to be backed by overvalued, sketchy physical real estate than nothing at all (see also: TerraUSD).

Post by dubswithus » Sun, May 22, 2022, 1:25 PM UTC

lupire wrote: post #231

grey-area wrote: post #140

Earlier quoted context omitted.

Technically, isn’t selling one asset and buying another precisely the definition of a taxable event? I don’t see how tether helps you avoid taxes unless you’re going to lie about your transactions and hope nobody notices.

You don't report income on every item you shuffle. In the spirit of US law (since crypto is t precisely classified), if you are a professional trader, you only pay taxes on your overall annual trading profits, not each individual trade. Same as how a a retail store doesn't have gains and losses on every individual item in inventory.

Post by papito » Sun, May 22, 2022, 1:27 PM UTC

Jon_Lowtek wrote: post #256

papito wrote: post #208

Earlier quoted context omitted.

And the solution is? Have a system where I can lose ALL my money by forgetting a password? Or when a crypto exchange goes boom and my life's savings are not FDIC ensured? I am sure your friend could get back in into the bank account. Being a random subject to a dumb banking accident is not the reason to upend the financial lives of billions.

If you can loose all your live savings by forgetting one password or one company going down, you made some terrible decision when it came to diversification of investments